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Comprehensive guide to bank housing loans in the Philippines: Part 2 | MyProperty.ph
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Comprehensive guide to bank housing loans in the Philippines: Part 2

by Jillian CariolaPublished: September 13, 2017Updated: October 10, 2017

Taking into account the unique offers of different banks will help you find the ideal home loan.

Bank housing loans in the Philippines requiremens MyProperty Philippines

When determining the right bank to avail of a home loan, it is important to keep your options open. This means doing extensive research on which banks offer the best deals, such as low interest rates, required gross family income per month, and the loanable amount. The more banks you look into, the higher the possibility of getting a great deal, which is important since a mortgage will be something you have to deal with for a long time.

As in Part 1 of our housing loan guide, let’s again assume that the borrower is a 30-year-old locally employed Filipino citizen with a gross family income of Php50,000 per month. The banks featured in this guide are Citibank (CITI), United Coconut Planters Bank (UCPB), EastWest Bank (EWB), Hongkong and Shanghai Banking Corporation (HSBC), Asia United Bank (AUB), Bank of Commerce (BOC), Maybank Philippines Inc. (MPI), Philippine Bank of Communications (PBCom), Philtrust Bank (PTC), and Robinsons Bank Corporation (RBC)*.

*Banks were selected based on BSP’s ranking as to Total Assets as of March 2017. Philtrust Bank and Citibank do not offer loans specifically for buying a home. For HSBC, Home Mortgage Loan will be considered.

Qualifications

Bank Age Citizenship Employment Status Minimum gross family income per month
CITI x x x x
UCPB At least 23 but not more than 65 for employed, 70 for self-employed Filipino citizen, foreign nationals, immigrants with dual citizenship Salaried or self-employed Php30,000
EWB At least 21 but not more than 65 at loan maturity Filipino citizen Salaried or self-employed Php40,000
HSBC At least 21 but not more than 65 at loan maturity Philippine resident for 3 years Salaried or self-employed Php50,000
AUB Not more than 65 at loan maturity Filipino citizen or foreign national Salaried or self-employed depends on loan amount
PTC x x x x
BOC At least 21 but not more than 65 at loan maturity Filipino citizen Salaried or self-employed Php25,000
MPI At least 21 but not more than 65 at loan maturity Filipino citizen or foreign national Salaried or self-employed Php40,000
PBCOM At least 21 but not more than 65 at loan maturity Filipino Citizen, Foreign-based Filipino, or foreign citizen residing in the Philippines Salaried or self-employed Php50,000
RBC At least 25 but not more than 70 at loan maturity Filipino citizen or foreign national Salaried or self-employed Php50,000

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

BOC has the lowest requirement for the minimum gross monthly family income (Php25,000), while HSBC and PBCOM are tied for the highest at Php50,000. Keep in mind that for some banks, income can either be your solo income or a combination of yours and that of your co-borrower, as in the case of HSBC. Also, most banks require that self-employed applicants’ be profitable for the past two years.

Requirements

1. Identification Documents (For all applicants)

Identification Documents CITI UCPB EWB HSBC AUB PTC BOC MPI PBCOM RBC
Application form x x
Government-issue IDs x x
IDs of co-borrower x       x      
Marriage contract/certificate (if applicable) x     x
Death certificate of spouse if widowed x         x      
Certificate of employment (COE), income tax return (ITR), IDs of spouse (if applicable) x       x  
TIN x       x        
Billing statement addressed to current and permanent residence x     x      
2x2 photos (and of spouse/co-borrower if any)                  

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

Only an accomplished application form and government-issued IDs are required across the board. Also, most banks require a marriage contract or certificate if the applicant is married. Only MPI requires a widowed applicant to submit a copy of their spouse’s death certificate.

2. Income Documents

a. For locally employed

  CITI UCPB EWB HSBC AUB PTC BOC MPI PBCOM RBC
COE (with compensation if necessary) x / x
ITR x / x
Payslips x   /   x      
Mortgage Redemption Insurance Form x     /   x        
Bank statements x         x      
Employment Contract or Employer's Affidavit or sworn statement x     /   x        
Proof of other sources of income, if any x         x      

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

Documents marked with "/" indicate that you only need to present one or the other. HSBC requires only one of these: your latest ITR, latest payslips, or employment contract or employer’s affidavit or sworn statement. Mortgage Redemption Insurance (MRI) is also optional for HSBC.

b. Income Documents (For self-employed)

  CITI UCPB EWB HSBC AUB PTC  BOC MPI PBCOM RBC
Financial statements (audited if necessary) x x
ITR x   x
Bank statements/passbook x x
Business registration with DTI x x / /  
Business permit x       x   /    
Articles of incorporation and By-Laws with SEC Registration Certificate x   x /    
List of trade references x   x /  
Mortgage Redemption Insurance Form x     /   x        
Company profile x     x /    

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

For self-employed applicants, MRI is an optional document under HSBC’s requirements. BOC will ask for either business registration with the Department of Trade and Industry if your business is a single proprietorship, or registration with the Securities and Exchange Commission if it is a partnership or corporation. For MPI, you need to supply either a business registration or a business permit, and you also have to submit either a company profile or a list of at least five your major suppliers and customers with contact details.

3. Collateral Documents

  CITI UCPB EWB HSBC AUB PTC BOC MPI PBCOM RBC
TCT/CCT x x
Tax declaration x   x
Tax receipt x     x      
Tax clearance x     x      
Location plan with vicinity map x   x  
Building/floor plan x   x
Building permit x         x    
Contract to sell or reservation agreement for developer tie-ups x     x        
Bill of materials x x    
Building specifications x x      
Construction cost estimates x         x        
Appraisal fee official receipt x       x        
Appraisal report x       x        
Master Deed of Declaration (for condo units) x     x      
Letter of Undertaking to construct x       x        

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

For UCPB, you need either the tax declaration or the tax receipt. BOC asks for either a bill of materials, building specification, or construction cost estimates. MPI will ask for either a bill of materials or the construction cost estimates.

Aside from those listed, HSBC also requires insurance-related documents; namely:
a. Life insurance policy equivalent to the outstanding loan duly endorsed in favor of HSBC
b. For house and lot, fire insurance policy equivalent to the value of the property duly endorsed in favor of HSBC
c. For condo, a copy of Master Fire Insurance of the condo building for select projects of HSBC’s accredited top developers. For other developers and/or condo projects, the MRI must also be duly endorsed in favor of HSBC in an amount equal to or more than the value of the unit
d. Every year while the loan is outstanding, a copy of the updated life insurance and/or fire insurance together with the proof of updated premium payments. You can also avail of Insurance-on-Installment, where HSBC may facilitate securing an insurance policy for you and you can settle the premium in three monthly installments

Loan amount, terms, rates

  Minimum Loan Payment term Interest rates (1-year fixing period)
CITI x x x
UCPB Php500,000 up to 20 years 5.50%
EWB Php500,000 up to 30 years 5.50%
HSBC Php700,000 up to 20 years 5.50%
AUB Php500,000 up to 20 years 5.50%
PTC x x x
BOC Php500,000 up to 20 years 5.25%
MPI Php800,000 up to 20 years 6%
PBCOM Php500,000 up to 20 years 5.4%
RBC up to 80% of property value up to 15 years 5.50%

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

Among these banks, BOC and PBCOM offer the lowest interest rates for a one-year fixing period at 5.25 percent, while MPI offers the highest at 6 percent.

Online convenience

  CITI UCPB EWB HSBC AUB PTC BOC MPI PBCOM RBC
Online application x     x    
Online calculator x   x    
Downloadable form x     x  

Bank names: CITI - Citibank, UCPB - United Coconut Planters Bank, EWB - EastWest Bank, HSBC - Hongkong and Shanghai Banking Corporation, AUB - Asia United Bank, BOC - Bank of Commerce, MPI - Maybank Philippines Inc., PBCOM - Philippine Bank of Communications, PTC - Philtrust Bank, and RBC - Robinsons Bank Corporation

Most banks offer two out of three online benefits, while BOC and PBCOM only have downloadable forms. On the other hand, AUB’s website does not offer any of the three options.

Processing period

The length of processing varies, with all of the banks claiming it would depend on how quickly an applicant is able to submit all the requirements. For instance, according to PBCOM, their standard turnaround time is three weeks to a month, but they only need five days to process once the requirements are completed. Meanwhile, EWB takes two to three months.

Remember that these are just some of the requirements these banks may ask of you. Depending on the purpose of your loan, they may require more information or documents to process your application. Also, there are specific documents banks will request of applicants who are overseas Filipino workers (OFWs) or are foreign nationals. To be absolutely certain, it is important to contact or visit the bank of your choice and to consult with professionals such as your financial advisor.

 

Sources: maybank.com.ph, ucpb.com, eastwestbanker.com, hsbc.com.ph, aub.com.ph, bankcom.com.ph, pbcom.com.ph, ecomparemo.com, bankbazaar.ph, Robinsons Bank, Asia United Bank

Main photo via Depositphotos

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