The Monthly Payment - When applying for a housing loan, you must not only have income, but have a sufficient one to get the loan approval. The monthly payment should be at most one-third of your income.
- The Down Payment - It is the amount of money you pay upfront when purchasing a home. Your down payment influences the home price you can afford, as generally the banks in the Philippines require at least 20% of the appraisal value of the property as a down payment.
- The types of interest rate - When you are applying for a home loan, you can choose between fixed-rate and variable-rate terms. A fixed-rate loan will be a great choice to those who prefer consistent monthly payments, enjoy the predictability and have a personal budget to follow. In a variable interest rate loan, the interest rate varies as market interest rates change.
- Loan Tenure - The total interest paid is directly proportional to the loan tenure. The higher the tenure, the higher the total interest paid, and vice-versa.