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 that you can consider.
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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 will not only benefit them now, but can potentially pay off in the future. If you are an OFW and would like to purchase a home, there are a lot of housing loans for you to choose from. Read an overview of them here, and find out which option will work for you.
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 benefits qualifies for an SSS housing loan. You can avail of either a socialized housing loan of P300,000, or a low-cost housing loan ranging from P500,000 to P1,000,000. 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 offers housing loans with a repayment term of a maximum of 20 years, or a 10-year fixed rate term. 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.
There are a lot of other loan opportunities out there, so feel free to explore all of your options. Also, make sure that you fully understand the terms and conditions of the loan agreement before singing it, and you are one step closer to giving your family their dream home.
Jillian Cariola, Writer
(cover image by chainat)