“What was I thinking?” a home buyer asks himself in disbelief after learning that he cannot actually finance his latest investment in an exclusive subdivision.
What he should have actually asked himself was, “What was I not thinking?”
Buyers, buyers, buyers. You should think twice, thrice, a hundred times, before you actually invest in real property.
Yes, you may be too excited to place a reservation on an attractive property perhaps because of the low supply and great demand for your dream house model, a pending price increase, or just because of your plain impulsiveness, but you must think and reflect before investing. A simple mistake in a Million–Peso investment will cost you a lot, and I mean a lot.
To shed light into this almost arcane world of real estate investments, here are some tips that you could utilize to establish how much you can actually afford to shell out to finance your home investment:
Tip #1: Be Honest With Yourself About Your Finances
Review your current financial status and contemplate on your future financial status. You could ask yourself these questions:
- “How long am I in my current work?”
- “Am I sure that my work visa will be extended”
- “Is my employer at least happy with my current performance and would he be willing to extend my contract for a longer term?”
- “Is my business doing well for the past couple of years?”
- “Is my Cash Flow showing positive signs or is it indicating a downfall?”
Tip #2: Know The Formula
Planning to finance your investment through installment financing? Let me give you a formula that you can use to determine how much you can safely spend for your investment monthly.
Many financing institutions (banks, mortgage lenders, credit unions, etc) in the country are using this.
M = the monthly payment that you can actually afford
I = your monthly income (plus your co–borrower’s, if any)
D = the monthly payment for any long term debt that you have, if any (example: car loan)
Example: Your monthly salary is PhP 250,000 and you are currently paying a whopping PhP 54,000 per month on your shiny, brand-new car. How much should your monthly real estate investment budget be?
I = Php 250,000 ; your monthly salary
D = Php 54,000; your car’s monthly amortization
Your maximum monthly budget is…
M = (Php 250,000 – Php 54,000) / 3
M = Php 65,333.33
This means that you have to get the “M” at a high amount so that your be labeled as a “risky borrower.” You wouldn’t want that to happen, right? It would just be demeaning. You see, banks would rather not grant the loan than to do the hassle of property foreclose.
So make sure that “M” results a high value so that bank executives will come knelling down your face while handing you the loan application.
Tip #3: Know The Alternative Financing Schemes
Some developers offer a “Deferred Cash” financing scheme. You might want to avail of this type of financing because it is payable at a short term only, plus it won’t be incurring any interest. Interesting, ain’t it?
Pay a visit to other banks and financial institutions searching for their loan interest rate and what they have to offer in general. Going for the shortest loan term and the lowest interest rate available is generally good for you. You will be saving more this way in the long run.
Again, exercise some common sense before you make any commitment.
So to my future home buyers, always think ahead. Check your savings and cash flow. Anticipate any possible financial problems that may arise in the future and take preventive measures before they happen. As the clichéd adage goes: “A fool and his money are soon parted.”
Home Financing For the Clueless Buyers is written by Kyro Jo.
mag kano ang hulog kuhn
editha baruel says
Member na ako ng Pagibig, sa Singapore ako nagaply. Isang beses ko lang nahulogan, puede ba akong makapag Housing loan? Meron ba kayong Rent Own? thx
JOEL M. SATERA says
ASK KO LANG YUN STATUS NG HOUSING LOAN KO S PROFRIENDS CARMONA BRANCH,ANG SABI SA AKIN NI MR.POL BALBIN NG PROFRIENDS NSA PAGIBIG NA DAW YUN PAPEL KO NA CI N DIN AKO NG PAGIBIG,SABI NI SIR POL OKAY N DAW YUN,WAIT NLANG S TAKE OUT BUT UP TO NOW D P DIN AKO NA TETAKEOUT.NKBAYAD N KO S AMMELYAR AT 4 MOS. N DIN AKO NGBABAYAD NG MONTHLY AMORTIZATION.ASK KO LNG PO ANO N STATUS NG LOAN KO?
joseph serrano says
gus2 ko lang po itanong, pwdi ba me mag avail housing loan? Amount of 100,000.00 pesos. Self employed lang po ko, php200.00 ang monthly remitance ko. magkano po ang babayaran me mothly in 25 years.
I would like to ask about the membership coz i my husband and i plan to get a loan of PAG-IBIG, so kindly send me some info or the requirements?
hi po ask ko lng po kung pwede ko po bang bayaran yun existing loan ko na 4k na buo pra ma avail ko po yung loan for renovation ng bahay? pwede po ba iyon?
Hi I just want to ask, sabi ng developer they will file my HL application in early October, so more or less, PAG-IBIG will CI me by second week or third week ng October, when po kaya yung notice of guaranty?? After guaranty letter po, dba mag-we-wait ng loan takeout which may take up to 3 months, may CI pa din po ba yun while waiting for takeout. What if nag-resign after notice of guaranty at nagpalit ng work, made-deny kaya yung take out.
Hi I just want to ask the status of my housing loan at BelAldea located @ GEn. Trias Cavite.My agent said that my application was already accepted.Kindly send me some information for the status of my application.
Airen Decierto says
Hi!! Good afternoon any available housing loan in Davao area …I’m currently working here in singapore thanks….
hello po,tanong kulang po sana kng papaano magpamember ng pag-ibig?
balak ko po sana kumuha na bahay.
hi po itatanong ko lang kung puwedi n po ako mgloan 2 year n po menbro sa pagibig fund
Technically, you can now apply for a loan. But please remember that your loan application has to be evaluated.
You need to sign a membership application at the branch.
Rowell Manalo says
hi good day!!
i wold like to ask, do you have housing loan lacated at imus cavite?, amount of P300,000 payable for 20-30 years? me and my wife plan to get a loan tru pag ibig financing.. thank you and God bless
hoping for your positive feedback
Please check the developers and real estate agents selling in those areas.
Clark Jay Salingay says
Naka regester na po sa pag-ibig through online,kaso wla ako na tanggap na confermation sa text,paano ko malaman na member na po ako?
Please follow up with at the branch or wait for their email.
mary barsaga says
ask qlang po malalaman n member napo akoyear 2010 ng ns jeddah po ako.now and2 po ako s riyadh 3 times qlang po nahulugan pag ibig ko po.ask qlang po kung nakapasok n or membro n po b ako?mary barsaga name ko.nag hulog po ako for telly money in ballad k.s.a.year 2010.e2 email add ko…email@example.com
I was reading your responses here and as I understand that if I apply for a Lot purchase the Title/TCT has to be transferred to the my name/buyers name FIRST before PAG-IBIG will approve the loan. Am I right?
Is there still a need for a Deed of Sale since the lot has been transferred to my name already?
What if I have a lot under my name can I apply for Lot Loan? If yes, can my wife as a PAG-IBIG member apply for a House Construction loan at the same?
Hope to hear from you soon.
When applying for a housing loan, normally you would be asked what will you do with the proceeds? In your case, I think it would be for house construction. Either you or your wife can do it, or you can combine and apply for a single loan.
Since you mentioned about title transfers, here is a good article to consider:
Thanks for the quick response.
I am considering Lot purchase and House construction. There is this lot that I’d like to buy. Initially I was given a set of requirements by PAG IBIG to secure. I have secured the Deed of Sale, lot plans, and all other papers necessary to apply for a PAG IBIG Lot purchase. But I was told by the signing lawyer of the Deed of Sale that there will be another set of requirements to be secured once I submit these papers and that includes transferring the Title from the seller to my name FIRST before we will be approved for a loan or the loan to be released. Is this true? Is this PAG IBIG process?
Yes, that’s right. Here’s the home loan process:
That should give you an idea.
Marianne Talaman says
ask ko lang po sana kung ano pwde maging part ng husband ko. kumuha po kasi kami ng bahay sa bulacan thru pag ibig pero sa akin po ang ginamit na pag ibig. yung husband ko po ba pwndg mag loan din sa pag ibig ng home financing?
If he is a member and qualified to loan just like you, of course he can apply for a housing loan.
ask ko lang po sana kung mag loan ang husband ko seafarer po ang asawa ko.
hindi po kami sa subd. bibili ng bahay. ma aprobahan po kaya ang loan nya?.
at magkanu po ba ang pwedi nyang mailoan.?
Yes, it’s possible. Please refer to this article to know about the loan amount you can possibly get:
gilda r.fisco says
gusto k po kumuha ng bahay at lupa pero d po malaki sueldo k d po ako member ng pagibig sss lang pero d pa tapos gusto k po sana mura lang at bandang cavite ofw po ako gusto k yung gawa na para malipatan ng kapatid k ulila na po kaming dalawa nagkadeperensya pa sya sa pagiisip gusto k sana instead na ilagay sya sa rehab bgyan sya ng bahay kasama pamilya nya sa maayos na paligid iskuater kasi sila nakatira sana po matulungan nyo k next month po balak k kumuha sa kaibgan k pero d k kaya email nyo lang po ako ###email address deleted by admin### friday off k kng puede usap tau para maintindihan k policy salamt god bless
SSS members are now required to become members of the Pag-IBIG Fund also. Please ask your employer about this.
maria cleofe gabas-austria says
hi..,im a member and i want to apply a low cost house and lot loan,and i prefer at davao city or even at mintal davao.may mga available po?salamat