1. What are the financing schemes or manner of payment available? Generally, you can choose from one of the following:
• In-House Financing - With this set up, the developer actually is the one extending a loan to the buyer. Since developers are not financial institution and bear more risk in taking the liability of the buyer’s purchase, hence interest rate is higher. In-house financing is better suggested to those who cannot present the requirements by bank financing. These are the people who are contractual but financially qualified and for those living abroad.
• Bank Financing - There are normally banks that are automatically tied-up with developer and are sometimes called “in-house Bank Financing”. With this set up, the buyer doesn’t necessarily need to find his/her own bank and directly apply for a loan. Above requirements are just submitted to the developer, and developer is the one facilitating the papers in behalf of the buyer. This free up the buyer from the legwork needed in processing the papers. You may find or use your personal bank to apply for bank financing.
Standard rate is applied to all approved loan and takes effect during the time of loan approval. Rates in the Philippines vary from other countries. Philippine banks offer 5, 10, 15 years amortization. Some offers up to 20 years financing, depending on the age of the buyer.
• Pag-Ibig Loan (HDMF) - Guidelines of Abot-Kamay" Pabahay!
• Cash purchase with discount - Availability of financing would depend on which type is conveniently adapted by developer. Some developers are superior on one financing scheme and appear to be disadvantageous on other types of scheme. It is ideal that you contact us for more detailed information of each developer’s financing scheme offer and we can disclose to you the advantages as well as the disadvantages.
2. How much is the down payment?
This would depend on the developer concerned. Normally, developers offer easy down payment such as 20%. (Others go as low as 10%) if the project is pre-selling. Pre-selling is an offer to sell when the construction of the Project is on-going. Some developers offer 12 months to 36 months to pay for the down payment of 30% for on-going projects and the monthly amortization for the balance will only take effect after the full payment of this down payment.
3. How much is the monthly amortization?
This would depend on the amount of loan approved, the rate of interest, and the terms of payment you have chosen. The most common is the diminishing balance method. This is ideal and equitable to the borrower because the interest will only be applied to the remaining balance of the loan. For this type of financing, we will appreciate if you contact us and we’ll be glad to compute it for you.
4. How can we make a reservation?
If you are abroad, you may appoint somebody you know here, a friend or relative whom you can trust and send to him the money for the reservation through any courier. A notarized special power of attorney is required duly authenticated by the nearest consul in your area. Since it normally takes one month for the authentication, you may fax the notarized copy just to process the reservation. The authenticated copy will follow later. If you choose to pay not through somebody, you may pay “bank to bank” direct to the developer’s account. We can send you the bank account of the developer as well as the developer’s contact numbers for your confirmation of the authenticity of these numbers and personalities. As soon as you make the deposit, please notify us right away so we can trace the incoming deposit and immediately issue an official receipt (O.R.). The copy of the O.R. shall be attached to an email right away while the original shall be sent via post mail.
5. Is the reservation refundable? Is it deductible from the selling price?
Reservation which is usually a very small amount ranging from P25,000.00 and up will entitle you to 30 days hold of your unit in your favor. Since the developer refuses to sell this to anyone interested within the period of reservation, the reservation is equitably not refundable. All reservations are deductible to the selling price.
6. Is it possible to avail of a loan with Pag-ibig? What if I’m not yet a member? How much can I loan and what is the maximum amount of loan?
This loan applies to some projects that the developers approved. An existing Pag-ibig policy requires that you have paid at least 24 monthly contributions before you can avail of any housing loan, but a new amendment to this policy opens the gate to non members to apply for membership and then avail of the loan right away by just paying the 24 monthly contributions at one time. For example, if you want to avail of P1,000,000.00 loan, your required monthly contribution for this is P800.00 and by just paying P19,200.00 at one time, you shall be entitled to a 1 million loan. The amount of loan you can avail of will depend on four requisites:
1. Actual need
2. Capacity to pay based on net disposable income. Monthly amortization should be no less than 40% of your net disposable income.
3. The value of collateral (appraisal will be conducted)
4. The monthly contribution of the member. A member is allowed a maximum of P125,000.00 for every P100.00 monthly contribution. The maximum loan amount is P2,000,000.00 based on P1,600.00 monthly contribution of a member.
7. How does in-house financing compare with pag-ibig and banks?
The advantages of in-house financing are:
• Simplicity of documents required. You need not be subjected to thorough background/credit check as compared to banks or pag-ibig. A Filipino wife who has no or inadequate income for herself can be approved for in-house housing loan if she has a husband such as a foreigner who can support the monthly amortization. Since the title does not bear the name SPOUSES ….. But only the name of the Filipina married to ….. (Foreigner’s name), banks do not approve loan or Pag-ibig if the wife does not have enough income to pay for the monthly amortization.
• Maceda Law or R.A. 6656 – mandates the developer to refund 50% of your payments if you have paid at least 2 years installment even if you are delinquent. Refund is not applicable in mortgage with banks or Pag-ibig.
• Interest charges remain constant no matter what happens to the economy. If contracted to 16%, it shall remain throughout the period of the contract. Bank interest rates on the other hand are floating. In times of crises, it can shoot up. The prime advantage however with Bank financing and Pag-ibig are that of lower interest rates which range from 10.5% to 14% per annum but there are also fees applies to that.
8. Are these units presented on the website already built? Or still undergoing construction?
Some are already built while others are ongoing construction. But most of the projects have model units that you can personally inspect while the actual unit is being built to be completed within the time framed which will be stated in contract. Please contact us for the most current status of each project. If you are abroad, we usually update our websites for the virtual tour or photos of our units.
9. Do you have ready for occupancy condo?
Yes, we have projects ready for occupancy. With only 10% down payment and issuance of post-dated-checks to cover the 20% down payment you may move-in to your brand new home.
10. Can a foreigner own real estate properties in the Philippines?
Foreigners do enjoy absolute ownership of a condominium unit. Ownership is evidenced by Condominium Certificate of Title (CCT). The ownership of land and house and lot are allowed only to Filipinos and foreigners who are formerly natural born Filipino Citizens. If a foreigner is married or related to (for example) a Filipina, the title shall indicate the Filipina name “married to (name of a foreigner)”.
11. Do I have to pay Value Added Tax?
(VAT) Under the law, all prices shall include the VAT and should not be indicated separately in the pricing, thus, the prices quoted herein are inclusive of VAT.
12. Do I have to pay for the capital gains tax? What sort of fees shall I pay for the transfer of title?
You don’t have to pay for the capital gains tax. All developers/sellers are required to pay this or an equivalent of creditable withholding tax. The transfer tax however will be on your account which is usually ½ of 1% as well as registration fee which is also about ½ of 1%.
13. How much is the monthly association dues?
This would depend on the project you have chosen. Association dues are usually very minimal which would normally range between P45.00 to P50.00 per square meter per month. This represents your share of the maintenance of the building which includes salaries of the guards, garbage disposal, repair and maintenance of amenities and facilities, electricity for the common areas like lobby, comfort rooms and hallways. But the developer does not impose this on the residents. Once the project is completed, the residents shall form a Condominium Corporation and you being one of the members/officers, will be among those who will govern the condominium and determine how much association dues to impose on each unit owner. Condominium maintenance fees are usually higher and are based on the floor area of the unit occupied. You may contact us for a more specific amount of maintenance fee for each condominium.
14. Are there hidden charges?
There are no hidden charges. All charges will be disclosed to you before you sign any contract.
15. What is the procedure of buying a property when I don’t have the time yet to come over to the Philippines?
You can purchase without necessarily coming over. First, you select from this site the specific property you are interested with. Through this website and sub link sites you will be able to view or choose the unit you like. We will send you the floor plan’ sample price computation, and requirements. Once you are decided which unit you like, you may send your reservation fee through any bank assigned to each project. Upon receipt of your payment “bank to bank, the unit of your choice will be reserved for you in 30 days. Within this 30 day period, all documents required will have to be submitted. The developers required post-dated-check as security payment for the whole down payment and amortization period using in-house financing. While you are abroad, you will be given your own Special Bank Account Number where you will deposit your monthly payments. Official Receipts will then be sent to you through attachment to email and through snail mail or you may entrust to your Real Estate Agent to keep it until you come home. Contract will then be requested. The original shall be sent to you for your original signatures and to be sent back for notarization here. After notarization and after receiving your down payment “bank to bank”, one of the notarized copies shall be sent to you again for your record. The reservation is always deductible from your down payment.
16. What is the assurance that the project will be finished?
The first step is to choose a credible Developer with proven track record of developing projects that are finished on time. We can help screen out these developers and recommend to you those whom you can trust. If the contract is already signed and payments already made and still eventually, the project is not completed on time, we can impose a provision of law in the Philippines that if the Principal/developer fails to complete the project on time, 100% of all payments shall be refunded less penalty interest plus interest legal rate.
