Buying a real estate property can be a great investment if you're an OFW. If a lack of funds is what’s stopping you, here are some options you can consider.
Nowadays, the Philippine real estate industry is booming and people want to take advantage of the opportunity to make a property investment. Overseas Filipino workers (OFWs) in particular would like to ensure that their hard-earned money will go to something that‘ll benefit them now and pay off in the future. If you’re an OFW looking to buy a home, there are a lot of housing loans for you to choose from in both the private and public sector.
SSS Housing Loan
A certified OFW who is not older than 65, has been contributing for 12 months straight and has not been previously granted any other SSS benefit qualifies for an SSS housing loan. You can avail of either a socialized housing loan of Php 300,000 or a low-cost housing loan ranging from Php 500,000 to Php 1,000,000.
Some of the acceptable purposes for the loan are building a house on a lot owned by the applicant, purchasing a lot on which a residence will be built, and buying an existing residence in the form of a house and lot, a townhouse or a condominium unit. The loan is payable in multiples of 5 to 30 years and, depending on the loan amount, the interest rate can range from 9% to 14% per annum.
PAG-IBIG Overseas Program
The PAG-IBIG Overseas Program is a savings program that allows OFWs with valid visas and employment contracts to set money aside for future home financing. You can either pay a monthly contribution of the equivalent of at least $5, or you can get a bigger loan by making a monthly contribution of P750.00. They can then withdraw their accumulated savings after 5, 10, 15 or 20 years of contribution.
With the PAG-IBIG Overseas Program, members are not only eligible for a housing loan, but also for a multi-purpose loan and dividends.
Several banks in the Philippines also offer housing loans specifically for OFWS. For instance, Land Bank has the "Bahay Para sa Bagong Bayani" program, which lends OFWs borrow to buy, build, or refinance their home. Banco De Oro provides OFWs with Asenso Kabayan, a multi-purpose, non-collateral loan that they can use for housing finances such as home renovations and lot down payments. PSBank offers several services like Home Loan with Prime Rebate, Home Credit Line, and Home Construction Loan. China Bank’s Overseas Kababayan Services (OKS) Home Plus offers loans for home purchase and construction, and for a low interest rate of 6%. The Philippine National Bank (PNB) also has the Own a Philippine Home Loan for OFWs employed in Singapore, Japan, Los Angeles and New York.
There are a lot of other loan opportunities out there, so feel free to explore all your options. Also, different institutions may ask for different requirements and offer varying terms, so make sure you completely understand the loan agreement before committing to it.
Sources: pagibigfund.gov.ph, sss.gov.ph, landbank.com, bdo.com.ph, psbank.com.ph, chinabank.ph, pnb.com.ph