Loans, when put to good use, can provide you with the leverage to a broad range of investments, from small purchases to big-ticket items like houses or cars. However when invested irresponsibly and recklessly, loans often become nightmares – with absurd service fees, ballooning interests, and other hidden fees that can put an individual deep into debt.
Thus, it’s important for an individual to have a clear understanding of what a loan is, the different types that will suit varying concerns and needs, and how you can make the most out of your loan, particularly if you’re planning to go for bigger purchases like a house.
Home loans, in particular, requires understanding the risks and responsibilities that come with it, since the amounts involved are usually huge.
In this article, we discuss everything you need to know about home loans, particularly about the BDO Housing Loan, to prepare you for any potential loan uptake – either soon or in the future.
What is BDO Housing Loan?
A BDO Housing Loan allows you to borrow as much as 80% of the appraised value of your property, and your payment terms can be extended for up to 20 years. You can also take advantage of BDO’s all-in financing to cover other housing loan expenses, such as taxes, insurance premiums, mortgage registration, and others.A BDO Housing Loan allows you to borrow as much as 80% of the appraised value of your property, and your payment terms can be extended for up to 20 years. You can also take advantage of BDO’s all-in financing to cover other housing loan expenses, such as taxes, insurance premiums, mortgage registration, and others.
BDO offers various home loan options. They offer financing assistance for the following loan purposes:
- Purchase of House and Lot / Townhouse Unit
- Purchase of Condominium Unit
- Purchase of Vacant Lot
- House Construction
- Home Improvement / Renovation
- Acquisition Reimbursem*nt
- Refinancing / Loan Take-out
How do you apply?
Here’s a quick overview of how you can apply for a BDO Housing Loan:
Step 1. Check Your Qualifications
To apply for a BDO Housing Loan, you must:To apply for a BDO Housing Loan, you must:
- Be at least 21 years old but not exceeding 70 years old at the end of the loan term
- Be a Filipino citizen (If you are a Foreign National living or working in the Philippines who is a visa holder, you may apply for a BDO Home Loan) For visa requirements, please visit https://www.bdo.com.ph/sites/default/files/pdf/List-of-Acceptable-Visas.pdf.
- Have a minimum gross income of Php 50,000/month or its equivalent in US Dollars• Have a stable source of income from business or employment
Step 2. Prepare the Requirements
Before applying for a BDO Home Loan, prepare the following:Before applying for a BDO Home Loan, prepare the following:
- Basic Documents
- Filled-out BDO Home Loan Application Form
- Photocopy of one valid ID that matches application details (Acceptable IDs: SSS, Passport, PRC, Driver’s License, OWWA ID, OFW ID, Seaman’s Book)
- Marriage contract (if applicable)
- Income Documents
- If locally employed: Latest Income Tax Return or BIR Form 2316; latest three months payslip; Certificate of Employment with Income (COEI)
- If self-employed: Photocopy of Audited Financial Statements for the last 2 years with latest ITR; bank statements or Photocopy of Passbook for the last 6 months; Certificate of Business Registration from DTI or SEC, Articles of Incorporation or Articles of Partnership (whichever is applicable); business background or company profile
- If employed abroad: Any of the following – Proof of Remittance for the last 3 months; latest crew contact (if sea based); Consularized Certificate of Employment with Income (COEI); or 3 months of payslips
Step 3. Submit Application Form and Requirements
Submit your completely filled out application form and requirements through any of the following:Submit your completely filled out application form and requirements through any of the following:
- Apply Online at https://www.clg.bdo.com.ph/en/web/clg/home-loan-online-application-form
- BDO Home Loan Provincial Business Centers
- More than 1,000 BDO Branches Nationwide
What fees do I have to pay when applying for a home loan?
Upon submission of your loan documents, you need to pay an appraisal fee:Upon submission of your loan documents, you need to pay an appraisal fee:
- Php 5,000, if collateral is within 30km radius from any BDO branch
- Php 5,500, if collateral is outside 30km radius from any BDO branch
Prior to the release of your loan, you also need to settle other loan-related fees, including Handling Fee, Notarial Fee, Registration Fee, Doc. Stamp Tax, Credit Life Insurance (CLI) Premium, and Fire Insurance (FI) Premium.
Sounds Great! How Should I Proceed?
You can use the BDO Home Loan Calculator to calculate your monthly repayments, based on your desired loan amount and property value. Once you’re ready to apply, you can do so online, through BDO Home Loan Provincial Business Centers, or through more than 1,000 BDO branches nationwide.
You can check out BDO’s Home Loan Calculator here: https://www.bdo.com.ph/personal/loans/home-loan/home-loan-calculator.
Final Thoughts
Applying for a home loan is a major decision – one that you shouldn’t take lightly. When done correctly, getting a loan can help you get your dream home; but when done irresponsibly, it can lead to financial difficulties.
To learn more about BDO Home Loan, visit https://www.bdo.com.ph/personal/loans/home-loan/overview.
NOTE: This article is for informational purposes only. You should always obtain proper financial and legal advice. IRL Properties is not affiliated with BDO.
