Published: January 22, 2018 | Updated: May 20, 2020 | Posted by: Munmun Nath | Loans
If you are still on the lookout for an affordable and reasonable housing loan, you may want to pause and have a look at the BPI Family Housing Loan. BPI Family Housing Loans are not only for purchasing a new house, it is also available for the construction, improvement, and renovation of properties.
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Apart from the housing loans, the BPI Family Housing Loan also offers the property equity loans. The housing loan serves several purposes such as:
On the contrary, property equity loans use the equity in your home (the value of your home deducts the amount you owe on the property) as collateral. You can use the loan for any purposes other than purchasing houses.
Any Filipino of legal age is eligible to apply for the BPI Housing Loan. However, the borrower must not be more than 65 years old upon the maturity of the loan.
At the same time, a foreign national also can avail of the BPI Housing Loan but his or her application is restricted only for condominium purchases. A foreign national is a person who is not a citizen but is currently residing in the Philippines for a period.
However, if the foreign national marries a Philippine citizen, he or she is eligible to acquire a house and lot by providing an Affidavit of Support and the Waiver of Rights over the collateral property. An Affidavit of Support is a document an individual (Filipino citizen) signs to accept the financial responsibility for another person who is coming to the Philippines to live permanently.
The minimum gross monthly income to earn the qualification for the BPI Family Housing Loan is PHP 40,000. At the same time, borrowers need to show the proof of being employed or in business for the last 2 years.
The minimum loan amount of the BPI Family Housing Loan is PHP 400,000. However, the maximum amount of the loans varies according to the types of your property:
(If the borrower is employed and the loan serves for the owner occupancy, the maximum loan amount can go up to 80% of the appraised value of the house and lot.)
This BPI Family Savings Bank provides housing loan borrowers a wide range of payment term options. You are free to choose among the payment terms available from 5, 10, 15 to 20 years in order to get the monthly amortization amount that you’re most comfortable with.
However, there are some restrictions on the maximum payment terms depending on the type of your property:
For example, if you chose the 6-10 years plan, you will be charged an interest with a fixed rate of 8.50% for 6-10 years. After the 10th year, the interest rate will be reset again. There are chances that the interest rate will remain unchanged or increase. However, it is really rare for the interest rate to go down.
Ready to apply for a BPI Family Housing Loan? Take their 60-second Loan Test to find what it would take to own your new home.
Munmun has 12+ years of experience of working in several technology companies in India, UK, and Belgium. She holds a BE in Mechanical Engineering and a MS in Decisions Sciences from the London School of Economics. Follow Munmun on LinkedIn.