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Saving for Your House with these Private Banks for OFWs like You

One of the most frequent responses given by overseas Filipino workers (OFWs) when asked why they want to live and work abroad is that they do so in order to provide a better life for their loved ones back home. Coincidentally, investing in residential real estate is typically always a part of “creating” a better life for the family in the Philippines. Although life conditions are generally better abroad than they are at home, not everyone—including OFWs—can purchase a home for sale with a lump sum of money. So, like local homebuyers, OFWs also use mortgage loans to buy real estate.

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While it is generally believed that it is much harder for Filipinos living abroad to find (and even qualify for) local home loans, there are some noteworthy financing options that OFWs can look into, apply for, even when they aren’t in the Philippines.

What is a Home Loan?

Direct Housing Loan from SSS

Direct Housing Loans from SSS

You are eligible to use the SSS’s Direct Housing Loan Facility for Overseas Filipino Workers if you are a Social Security System member who has made at least 36 contributions (or payments that have been made continuously for the past two years/fourteen months).

The SSS Direct Housing Loan has a maximum loanable amount of Php2 million and is repayable in multiples of five (5) years up to a maximum of fifteen (15) years in order to “supply socialized and low-cost housing to abroad Filipino contract workers.”

Pag-IBIG Overseas Program (POP)

Program ag-IBIG Overseas (POP)

You can continue to be a member of the Home Development Mutual Fund (HDMF/Pag-IBIG) even when traveling abroad thanks to the Pag-IBIG Overseas Program (POP). You are eligible for the Pag-IBIG loans aimed for purchasing property in the Philippines provided you make a minimum of 24 monthly Pag-IBIG deposits.

Other criteria, such as your genuine need and your ability to pay, will determine how much you can borrow from Pag-IBIG, but at the maximum, you might be able to borrow up to Php6 million for your home purchase.

Home loans in the Philippines from private banks

Despite being among the easiest to apply for, home loans from the SSS and HDMF are often intended for low-cost housing. Additionally, some Filipinos who have been abroad for a long time may have stopped contributing to SSS or Pag-IBIG, therefore disqualifying them from receiving those mortgage loans.

A house loan from a private bank is your best choice if you want to buy a more expensive property or have fallen behind on SSS or Pag-IBIG payments because you were abroad. Finding the best bank to apply to for house loans might be difficult because there are so many local banks that offer them.

Being stationed abroad doesn’t help things, but unlike the more time-consuming steps involved in purchasing a home while abroad (seeing properties, processing paperwork), asking yourself the following questions may help you limit your options and make things a little simpler:

How much do I need, and what can the bank offer?

The conditions of the housing loans they provide vary, just as banks do. Fortunately, most banks’ websites offer access to this information, and some of them even have loan calculators that make it a little simpler to estimate how much you can borrow (and ultimately pay for) and compare your options.

Currently, most banks will lend up to 80% of the appraised value of the home being purchased, though there are differences in this figure between banks.

For instance, the Bank of the Philippine Islands would lend up to 80% of the appraised value of a house and lot as long as the total is less than Php5 million, the buyer is employed, and the residence will be occupied after the sale. Similar to the previous example, Security Bank Corporation (SBC) gives a maximum loan amount of 80% of the appraised value of a property; however, this is not just applicable to homes and lots worth Php5 million but also to condos for sale or unoccupied lands.

The amount you are granted will also rely on how much money you actually require, which in turn is based on the purpose for which you will be using the loan. Home loans can, after all, be used to finance the purchase of a house and lot in addition to condos or open lots, as well as to renovate existing homes or to construct new ones. Most banks offer specific loan products and loan amounts for each.

How long do I have to send my payments?

Your current and predicted income is a crucial factor to take into account when choosing a home loan because the sum you borrow and the repayment terms you choose will have an impact on your financial future, which may or may not be totally overseas.

When looking into home finance, the most frequent payment periods you’ll encounter are 20 or 25 years, which are also the typical maximum loan terms provided by most institutions. Granted, some banks only offer a 15-year payment period, while others extend it to 30 years.

Loan conditions typically change based on the bank and the kind of property being purchased or constructed. The best course of action is to research as many banks as you can that provide house loans for OFWs, and to take into account your ability to make payments and/or time working abroad.

How much will my loan’s interest cost me?

While most bank home loans may be repaid in 20 to 25 years and typically cover around 80% of the appraised value of the property, the biggest difference between loans is the interest rate. With that said, having rates that are protected from market changes in addition to having the lowest interest rate possible makes a loan excellent.

This entails being able to choose a time frame of one to 15 years (depending on what the bank offers) during which your interest rate will remain constant independent of market fluctuations, making it simple for you to predict the loan payments you must make over the coming few months. A separate fixed interest or bookings rate is set for each distinct period, and it is only reviewed once that period has passed.

Security Bank

Security Bank Housing Bank Loans Offers:

PHP 1 million is the minimum loan amount.
Maximum loan amount: 80% of the assessed value of the property
Rates of interest:
For one to three years, 6.25 percent is set.
For the next five years, 6.75 percent will be fixed.
For a period of ten years, 7.75 percent will be set.
Term of the loan: up to 20 years
Five banking days for approval is a quick turnaround time.
It can be used to buy a house and land, an empty lot, or a condominium unit.
It may also be used to build, renovate, or refinance a property.

Who are qualified to loan:

you must be at least 21 years old but not more than 65 years old.
Having a monthly combined income of PHP 50,000
For a period of at least two years, you must have been employed continuously.
Self-employed applicants must have run a legal and productive company for the previous three years.

Bank Housing Loan Requirements:

Form for requesting a loan has been completed.
One clear copy of a valid ID with a photo (same requirement for spouse or co-borrower)

Any of the following recent income papers are required for employed applicants:

Employment and Compensation Certificate
Income Tax Return (ITR)
Pay Stubs from the previous three months
Statements from the last three months’ bank accounts
For candidates who are self-employed:
ITR

Any of the following income documents: one-year audited financial statements, three-month bank statements, or rental contracts

Application for Mortgage Redemption Insurance (MRI)
Power of Attorney for Special Purposes (for OFWs only)

BDO

BDO Housing Bank Loan Offers:

The minimum loan amount is PHP 500,000 for a house and lot and PHP 300,000 for just the lot.
Maximum loan amount: 80% of the assessed value of the property
Rates of interest:
For one to two years, 6.25 percent is set.
For three years, 6.75 percent will be set.
For the next four to five years, 7.25 percent will be set.
Term of the loan: up to 20 years
Five banking days for approval is a quick turnaround time.
It can be used to buy a house and land, an empty lot, or a condominium unit.
It can also be utilized for house building, remodeling, purchase cost reimbursement, or refinancing.

Who are qualified to loan:

you must be at least 21 years old but not more than 70 years old.
Having a monthly salary of at least PHP 50,000
For a period of at least two years, you must have been employed continuously.
Self-employed: Must have run a legal and profitable company for the previous two years.
For OFWs, they must work for two to three years in a row.

Bank Housing Loan Requirements:

Form for requesting a loan has been completed.
a photocopy of one valid ID that matches the application’s information
Any of the following recent income papers are required for employed applicants:
Employment and Compensation Certificate
ITR
Pay Stubs from the previous three months
For candidates who are self-employed:
ITR’s most recent version
Articles of Partnership or Incorporation, Certificate of Business Registration from DTI or SEC (whichever is applicable)
Background information or a company profile
Any of the following income documents: two-year audited financial statements, six-month bank statements, or rental contracts
For OFWs
Proof of remittance for the last three months is required.
If at sea, the most recent crew contract
COEI (Consularized Certificate of Employment with Income) or pay stubs from the last three (3) months

METROBANK

METROBANK Housing Bank Loan Offer:

PHP 500,000 is the minimum loan amount.
Maximum loan amount: Metrobank-accredited developers can borrow up to 90% of the property’s net selling price.
Rates of interest:
For one to three years, 5.75 percent is set.
For four to five years, 6.75 percent will be set.
Term of the loan: up to 25 years
It can be used to buy a house and land, an empty lot, or a condominium unit.
Can also be used for house building, asset purchase, acquisition cost reimbursement, or refinancing.

Who are qualified to loan:

When the loan matures, you must be at least 21 years old but not more than 65 years old.
Having a monthly salary of at least PHP 40,000
For a period of at least two years, you must have been employed continuously.
For OFWs, either a land-based (technical or administrative staff/officer) or a sea-based (officer) position is available.
OFWs in current work or who have renewed or signed a contract at a loan application
Employed locally in the previous two years for land-based OFWs with fewer than two years of service 5 years before becoming an OFW, or as an OFW with several employment or a mix of local and international work
For sea-based OFWs, a total contract period of 24 months was completed your present agency, or 48 months if previous agencies are included
Self-employed persons must earn at least $1,000 (equal to Php30,000), or have the same GMFI (Gross Monthly Family Income) for a set period of time those who make money

Bank Housing Loan Requirements:

Form for requesting a loan has been completed.
a photocopy of a government-issued identification card
Any of the following recent income papers are required for employed applicants:
Employment and Compensation Certificate
ITR
Pay Stubs from the previous three months
For business applicants who are self-employed:
Registration with the Securities and Exchange Commission
Certificate of Registration from the Department of Transportation
ITR’s most recent version
Financial Statements that have been audited for the past two years
Six-month bank statement with “No Overdraft Charges” BOO certification
In the case of OFWs:
Land-based: Employment Certificate with Employer’s Email

If a maritime base is used, the most recent POEA contract should be used.

Maybank

Maybank Housing Loan Offer:

PHP 500,000 is the minimum loan amount.
The maximum loan amount is 80% of the appraised value for a home plus lot, condo, or townhouse, and 60% for a lot solely.
Rates of interest:
For one to two years, 6.75 percent is set.
For three to four years, 7.25 percent is set.
For the next five years, 7.5 percent will be fixed.
It can be used to buy a house and land, an empty lot, or a condominium unit.
It can also be utilized for house building, equity, or refinancing.

Who are qualified to loan:

When the loan matures, your age plus the length of the loan should not exceed 65 years old.
You must have worked for at least two years in a respectable organization; or
You own a company that has been in existence for at least three years and has been profitable for the past two years.
You should have a two-year employment contract if you are an international worker.
If you’re a seafarer, you should be at least an officer level and have worked for at least two years in a row.
For foreign laborers or seafarer candidates, an attorney-in-fact is necessary.

Bank Housing Loan Requirements:

Form for requesting a loan has been completed.
a photocopy of a government-issued identification card
CENOMAR and a marriage certificate (if married) (if single)
Any of the following recent income papers are required for employed applicants:
Employment and Compensation Certificate
ITR
Pay Stubs from the previous three months
For business applicants who are self-employed:
Permits and Business Registration
ITR’s most recent version (last two years)
Financial Statements that have been audited for the past two years
Description of the Business

Bank Statements/Passbook from the previous six months

In the case of OFWs:

Employment Contract / Employment Certificate
Employment History / Most Recent Crew Contact (if applicant is a Seafarer)
Special Power of Attorney (formatted according to Maybank)
Bank statements/remittance evidence from the previous six months
ITR’s most recent version (if applicable)

UnionBank

UnionBank Housing Bank Loan Offers

PHP 500,000 is the minimum loan amount.
Maximum loan amount: 80% of the contract price of the property
Interest rates range from 8% to 11%.
Term of the loan: One to twenty years
Allows for a ten percent to ninety percent down payment.
It can be used to buy a lot, a home and a lot, or a condominium, as well as to build, refinance, or renovate a house.
Timeliness of approval

Who are qualified to loan:

21 to 65 years old at the time of debt maturity, but not older than 70.
Filipino or a former citizen of the Philippines
Employees who have a permanent position
Individuals who have been self-employed for at least two years and have a profitable business.
OFWs

Bank Housing Loan Requirements:

Housing loan application form for a Unionbank Home Loan has been completed.
Valid identification (SSS/GSIS/TIN ID)
Contract of Marriage (if married)
For employed candidates, the following are the most recent income documents:
Salary information is included on the certificate of employment.
Pay Stubs from the previous three months
For self-employed candidates, the following are the most recent income documents:
Certificate of Business Registration from the DTI or the SEC
Statements of Income
Statements from the last six months’ bank accounts
ITR
Contact information for a list of clients or suppliers
Additional documents for OFWs:
Valid passport with entry and exit stamps
Original notarized Special Power of Attorney

Bank of the Philippines Island

BPI Housing Bank Loan Offer:

PHP 400,000 is the minimum loan amount.
Amount of the loan:
70 percent of the home and lot’s assessed value
An empty land or residential condominium is worth 60% of its appraised value.
up to 80% of the home and lot’s appraised value (as long as the amount does not exceed PHP 5 million)

Rates of interest:

25 percent set for a year or two
For three years, 6.75 percent will be set.
For four or five years, 7.25 percent is set.
For a period of ten years, 9.50 percent will be set.
Fixed for 15 years at 10.50 percent
For the next 20 years, 12% will be fixed

Terms of the loan:

For a house and a lot, up to 25 years is possible.
Vacant land, residential condominium, commercial loan, refinancing, or multi-purpose loans can be financed for up to ten years.
Processing time is short (You can expect a reply within five working days after submission of complete requirements.)
Applicants with prudent wages and purchasing habits should apply.

OFWs are becoming more prevalent every year. While working away from home, these modern-day heroes continue to fight for a brighter future. Despite the financial blunders they make, OFWs want to be able to support their families, send their kids to good schools, and enjoy a comfortable retirement.

Investing allows one to achieve all of these goals. Whether buying a house, requesting a bank loan specifically for housing, or making stock market investments, investments for OFWs offer a possibility for financial independence that shouldn’t be disregarded.

After learning about and considering some of your possibilities, you may now apply for a housing bank loan.