Becoming a homeowner is something that most, if not all, Filipinos dream of achieving at some point in their lives. Being able to afford to rent independently is one thing, but having your very own home offers a greater sense of accomplishment.
Not everyone can afford to pay for a property outright, though, which is why it’s a good thing that various lending institutions like banks are offering home loans to make your purchase easier. But out of all the banks currently providing this option, how do you choose the best one? Here are a few pointers to remember before signing on with one.
Make sure they have a proven track record
One of the first things you should look for in a bank is how good their reputation is as a financial institution. They should have been in the business for a long time and have been recognized for their accomplishments. Having considerable presence in the country and abroad also proves their merit as an institution that is trusted not just locally but internationally.
Ask about their real estate partners
Working with some of the biggest names in real estate is a good sign that a bank is one you can rely on. On top of that, you’re also assured that you have a multitude of options when it comes to which developer to buy from and which project to choose.
Find out about their various loan purposes
When someone says “home loan,” they automatically think it’s a loan used just for the purchase of a house. But what if you already have a lot and only need money to construct a home on it? The bank should be able to accommodate this as well, along with other options like:
• Purchasing a lot
• Purchasing a lot and constructing a house
• Purchasing a condo
• Purchasing a townhouse
• Renovating or expanding your current home
• Refinancing your existing loan
• Reimbursing the amount paid for a house, lot, condo, or townhouse
• Purchasing or mortgaging another residential property for investment purposes
Inquire about their different loan payment options
With great power of buying a home comes great responsibility of paying it off, but that doesn’t mean you have to battle with rates you can’t comfortably afford to pay every month. A good bank to consider is one that will offer options that consider where you used the loan, as well as what’s convenient for you. For instance, a home loan used to purchase a lot can be paid off within a maximum of 10 years, while the purchase of a house and lot – which is considerably more expensive than a lot – can be paid off in up to 25 years.
See if they offer deals for reduced rates
Sure, a home loan does take a huge weight off your shoulders as far as financing your new home is concerned. Still, if you are on an incredibly strict home-buying budget, you can always use a bit more help. Ideally, the bank to go for would be one who understands, and can take just a bit more off your payments with various promos and discounts.
Know if they have other loan-related services
Want to know how much you should loan from a bank? You can get an estimate by talking to a bank representative, but what if there’s something you can use without having to go to the bank until you’re ready? This is where an online mortgage calculator comes in handy. A home loan calculator gives you an idea as to how much you can comfortably loan and pay off based on your current earnings and the loan term you choose. This helps you make a more informed decision on the home prices you should be considering.
Selecting the best bank for your home loan needs is one of the most crucial decisions you’ll be making when you buy a home. You’ll be working with that institution for the entire duration of your loan, whether it be five years or 25, so it should be one that offers flexibility, displays stability, establishes confidence, and has your best interests at heart.
Metropolitan Bank and Trust Bank, more commonly known as Metrobank, is one of the most recognized universal financial institutions in the Philippines. Operating for over 50 years, multi-awarded Metrobank has a diversified financial portfolio that includes investment banking, thrift banking, leasing and financing, bancassurance, and credit card. To learn more about their home loan program, click here.