Bank Loans and PAG-IBIG Home Loans
Home Loan Calculator:
Maximum Age of Borrower:
Borrowers must not exceed 64 years old at the time of loan approval or 65 years old at loan maturity.
Maximum Loanable Amount:
The loanable amount is typically 70% to 80% of the total assessed value of the house and lot.
What is a Fixing Period?
The fixing period, also called the repricing period, tenor, or cycle, is the duration when the interest rate remains fixed.
How to Choose a Fixing Period?
For instance, a 1-year fixing period means the interest rate stays constant for 1 year. After that, rates are recalculated based on factors such as supply and demand in the market, as monitored by Bangko Sentral ng Pilipinas. Since predicting rate changes is challenging, selecting a fixing period is a personal decision. Below is a 25-year interest rate history from Bangko Sentral ng Pilipinas to guide your choice.
Note when using the Home Loan Calculator:
If you are using a smart phone, lightly touch the yellow box to edit "LOAN AMOUNT" until keyboard appears (about 3 tries). Upon entering the "LOAN AMOUNT", lightly touch on "Monthly Bank Payments" for results to appear. If changing the interest rate, don't forget to add % sign.
Our Opinion on Interest Rate Trends:
In our observation, interest rates tend to decrease during periods of uncertainty, such as Presidential election years (1998, 2004, 2010, 2016, and 2022) and the early months of the COVID-19 pandemic. During these times, loan demand often drops as investors adopt a "wait and see" approach. Conversely, interest rates typically rise alongside inflation, as the increased cost of goods and services drives higher loan demand.
While these patterns reflect our analysis, predicting interest rates remains complex due to the influence of various factors, including global events and natural disasters.
Do I need any Cash or Equity even though I loaned from the bank already? The following are things the bank won't tell you.
Yes, you’ll need additional funds even if you’ve been approved for a bank loan. Here’s why:
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Tranches: Banks release loan amounts in stages, not all at once. For example, with a project cost of PhP3.5M and a lot value of PhP1M, the first tranche is about 70% of the lot’s value (e.g., PhP700k). To proceed, you’ll need extra funds to reach milestones required for further releases.
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Underassessment: Banks often underestimate project completion to maintain a safety margin. For instance, a 90% completion mark might actually require 95% of the work done. This means you’ll need an additional 5% to cover the gap.
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Processing Delays: Each tranche takes around two weeks for approval and release. During this time, construction continues, requiring around 5% of the project cost to avoid delays.
Summary: For a PhP3.5M project, you’ll need approximately 30% of the total cost (around PhP1.05M) in cash or equity to cover tranche gaps, underassessment, and ongoing construction. Be prepared to have these funds ready to ensure smooth progress.
PERSONAL REQUIREMENTS
NEEDED BY BANK:
For locally employed :
Valid Id's
3 months latest payslips
Certificate of Employment with compensation
Latest ITR
Statement of Account with other banks
Marriage Certificate - if married
CENOMAR - If single
For OFW or Overseas Filipino Worker:
Valid Id's
3 months latest payslips
Certificate of Employment with compensation
Employment Contract
Statement of Account with other banks
Marriage Certificate - if married
CENOMAR - If single
For Self-employed:
Valid Id's
DTI Certificate / SEC Registration
Business Permit
Articles of Incorporation & By-Laws
Latest GIS Latest ITR & Audited Financial Statements Statement of Account with other banks
Marriage Certificate - if married
CENOMAR - If single
TECHNICAL REQUIREMENTS
NEEDED BY BANK:
Copy of TCT
Copy of Tax Declaration of Land & Building
Floor & Building plan
Bill of materials
CASH ON HAND or EQUITY NEEDED HOME CALCULATOR
How much Cash on Hand or Equity do I need to prepare to complete the project?
Step 1.) Input Lot Area in our Cash on Hand or Equity Needed Calculator
Step 2.) Input Lot Market Value (per square meter)
Step 3.) Lightly Touch Green Box for results to appear.
Note when using our Build Now Pay Later Home Loan Calculator:
If you are using a smart phone, lightly touch the yellow box to edit "Lot Area" until keyboard appears (about 3 tries). Upon entering the "LOAN AMOUNT", lightly touch on "Lot per square meter Lot Market Value" for results to appear. If changing the interest rate, don't forget to add % sign.