What you need to know about buying a home with a loan in the Philippines

First of all, foreigners can buy a house with a loan in the Philippines. Developers will also assist you and inform you of the banks they recognize. But the whole loan process still needs to be done by yourself. First of all, we need to know some background knowledge of Philippine banks.

1. In the Philippines, banks are basically private banks (like the National Bank of the Philippines, although it belonged to the government when it was established in 1916, it was also privatized in 2007) and is strictly supervised by the Central Bank of the Philippines, so they are relatively conservative in mortgage loans., And will not actively provide loans for home buyers like major domestic banks.

2, Filipino local bank credit is generally not high, often after the loan overdue repayment or cut off, so the major banks in the audit of housing loans are very strict. This is also understandable. Filipinos generally have a low ability to plan for money. Everyone is popular for early consumption. Their domestic savings only account for about 20% of GDP, while neighboring countries generally account for about 35%.

3. The type of visa held by foreigners in the Philippines, as well as whether there is a stable job, such as requiring you to work in the same company for 2 years, and proof of income is the key to considering whether to lend. If only foreigners holding tourist visas, it can be said that it is almost impossible to obtain bank loans. (In addition, Xiaobian saw information online that BDO was willing to provide loans to tourists with tourist visas, as long as documents such as employment certificates from other countries were provided. However, after Xiaobian called BDO, the bank staff told him that it was not possible, and the information Xiaobian saw from their website did not have instructions for tourists with tourist visas.)

4, so foreigners want to successfully obtain loans to meet: A. hold long-term residence status, such as work visa, SRRV, etc. B. Maintain a good bank credit record and a large deposit guarantee for at least one year; C. Pay taxes normally and guarantee the ability to repay.

The rules may vary from bank to bank, but the basic principle is that the lender must stay in the Philippines long enough, have a stable business income or job, and have a tax record of at least one year. In addition, compared with the local people, the loan interest rate for foreigners is usually higher, the specific interest rate is different from the bank, but also because of the fixed interest rate and variable interest rate, as well as the length of your loan term and the difference, the small editor suggests that the specific can be consulted separately from the bank.