The Property Geek: Navigating real estate financing options in the Philippines
You might consider these financing solutions when buying new property
In my five years of experience in the real estate industry, I've observed a growing trend among investors who prefer acquiring properties without paying in cash. Developers are increasingly offering pre-selling projects, allowing buyers to lock in prices and make manageable monthly payments. Strategic partnerships with lending institutions aim to provide buyers with various financing options.
For those considering financing solutions, the following avenues are available, each catering to different preferences and circumstances:
Pag-IBIG financing
Pag-IBIG, a well-established government institution, extends financial support to its members. To qualify, individuals must be members for a minimum of 24 months, with completed monthly contributions. Applicants should not exceed 65 years at the loan application date and 70 years at loan maturity. It's imperative to have no overdue existing loans and be legally eligible to acquire and encumber real property.
Bank financing
Banks provide an alternative for property financing, with eligibility criteria requiring applicants to fall within the age range of 21 to 65 years. A tenure of at least two years with the current employer is necessary to qualify. This option offers flexibility to those who prefer a more conventional banking approach.
National Home Mortgage Finance Corporation (NHMFC)
As a government lending institution akin to Pag-IBIG, NHMFC demands similar prerequisites. However, what sets it apart is its emphasis on sustainable developments through the BERDE program. Developers aligning with this initiative can avail loan interests as low as four percent per annum. NHMFC's focus on green building and cost efficiency underscores its commitment to environmentally conscious projects.
It's crucial to note that only Filipino citizens can avail themselves of these financing options, and meeting income requirements is necessary based on the loan amount.
For those considering real estate investment, overcoming apprehensions about loans is key. Loans provide benefits, enabling individuals to allocate capital to other investments or ventures.
Jireh V. Mamaclay, 27, is an industrial engineer by profession. Recognized as The Property Geek across Facebook, TikTok, and YouTube, he has transitioned from a banking role to a dedicated realtor in the South. Presently, he manages a team as the sales director of a realty enterprise. He intends to assist fellow Filipinos, particularly those within his generation, in attaining their property investment goals.