Having their own house is the ultimate dream of every Filipino family. But the truth is, most of those who plan to purchase a house do not have a ready cash to pay for it, or even if they have, they would prefer to apply for a loan to complete it.
Saving for your first home purchase may take for a couple of years, and by the time that you are ready for it, the house that you wanted must have long been sold. Or the value of your money can no longer purchase the same quality house you’d always wanted. You might want to consider applying for a housing loan to realize your dream.
When we hear of a housing loan, Home Development Mutual Fund or commonly known as PAG IBIG housing loan fund comes first to our mind. We definitely will not miss it because a small amount from our salary is deducted to pay for our monthly contribution. Providing loan to finance our houses is one of the services provided by the institution.
If you are shopping around for the best house to buy, you might want to shop around for housing loan provided by banks too because you might find a better deal. Many of us are a bit intimidated to inquire from banks, we may be thinking of higher interest rate, stricter requirements, or lesser chance that the loan may be approved.
Some home purchasers prefer bank services when it comes to housing loan for a reason or two. And some would prefer PAG IBIG housing loan. Let us compare what each offers on every factor we need to consider arriving at a sound decision.
How Much You Can Borrow
Loan Appraisal Value Ratio
|1. Some banks offer 80% – 90%, some banks offer as low as 70%.|
|Maximum of 30 years||5 – 35 years|
|Insurance premium will be included in monthly amortization|
|15 business days||5 – 7 business days|