For the past months that I've been blogging about different house and lot properties as well as condominiums, I always encounter questions about payment terms and options so I hope this simple post can help you.
While CASH payment is good, not all Filipinos can readily produce the amount needed to settle the total contract price of their chosen unit so most developers offers these 3 types of financing options.
1. In-House Financing – This means that you are loaning the total amount of your property purchase to the developer. For example, if you choose a unit from Bali Hai Residences in of MyCitiHomes in Imus, Cavite and you opted to avail their in-house financing, you are loaning from MyCitiHomes and you will pay your monthly amortization to them directly. Somehow, you can even consider this arrangement as Rent-To-Own.
While CASH payment is good, not all Filipinos can readily produce the amount needed to settle the total contract price of their chosen unit so most developers offers these 3 types of financing options.
1. In-House Financing – This means that you are loaning the total amount of your property purchase to the developer. For example, if you choose a unit from Bali Hai Residences in of MyCitiHomes in Imus, Cavite and you opted to avail their in-house financing, you are loaning from MyCitiHomes and you will pay your monthly amortization to them directly. Somehow, you can even consider this arrangement as Rent-To-Own.
| Bali Hai currently offers Leia House Model. You have the option to avail the INNER UNIT with lot area of 65 sqm worth around Php 1.7 M or the END Unit with lot area of 91 sqm for more than 2 million pesos. BALI HAI RESIDENCES LTS No. 28961 |  |
2. Bank Financing – You are borrowing money from the bank of your choice or sometime tied up with the developer. Your monthly amortization goes to the bank. The interest rate is usually higher than Pag-ibig and normally has shorter terms of payment.
Below is a sample computation for Bali Hai Residences if ever you will consider Bank Financing. Click here to know more on about this pre-selling property.
Below is a sample computation for Bali Hai Residences if ever you will consider Bank Financing. Click here to know more on about this pre-selling property.
 DISCLOSURE: I am an Accredited Online Lead Generator for Driven Marketing Group. |  This actual photo was taken during my site trip in June 2015 and I'm excited to see the newly built house model units. |
3. Pag-ibig financing – Home Development Mutual Fund (HDMF) or most commonly referred to as Pag-ibig Fund will pay your total property cost and you will pay your monthly amortization to Pag-ibig. Usually have the the lowest interest rate with the most flexible years of payment terms. The maximum is usually 30 years.
If I'm not mistaken, real estate developers are mandated by law to come up with their affordable housing projects so that ordinary Filipinos can realize their dream of having their own decent house and lot.
If I'm not mistaken, real estate developers are mandated by law to come up with their affordable housing projects so that ordinary Filipinos can realize their dream of having their own decent house and lot.
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