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Housing Loan Requirements in the Philippines



Financial institutions in the Philippines offer packages lending out money to people who are in the early stages of purchasing a real estate property. Commonly known as a housing loan, it can also be borrowed for real estate–connected reasons such as renovation, and construction of houses. It is granted to individuals looking to fulfill their dreams of having their own house but with not enough funds to do so.
Housing loans are paid in an installment basis, making the expenses more bearable.
Since this kind of loan involves a large sum of money, a form of collateral is required. Banks will hold the property rights for the house or real estate property until the loan is paid back in full.


Before applying for a mortgage loan, the following requirements must be met:

  •  A resident of the Philippines with a valid Philippine billing address
  •  Residential real estate property for collateral for existing homeowners
  •  A tenure of at least 2 years for employed applicants
  •  Must be operating profictably for at least 3 years for applicants engaged in business
  •  At least 21 years of age and not exceeding 65 years at the time of loan maturity.


BANKS HOUSE LOANS REQUIREMENTS

REQUIRED AT ALL TIMES
  • HOUSING LOAN APPLICATION FORM (duly accomplished)
  • Photocopy of 2 valid government issued ID's
  • Appraisal Fee of P3,500 - non-refundable
  • If with co-maker/co-borrower/attorney-in-fact, separate application form is needed
IF EMPLOYED:
INCOME DOCUMENTS
  • Photocopy of the latest Income Tax Return (ITR)
  • Certificate of Employment and Compensation
  • Alien Certificate of Registration (ACR) and Official Receipt (if resident alien)
OVERSEAS FILIPINO WORKER
  • Photocopy of Passport
  • Contract / Certificate of Employment (COE) approved by the POEA, if applicable, authenticated by the Philippine Consulate (if direct hired)
  • Proof of inward remittance thru PNB or other banks
  • Crew Contract and Exit Pass from POEA (for seafarers only)
  • PNB-prescribed Special Power of Attorney (SPA), if applicable
  • If SPA was executed and notarized abroad, such has to be authenticated by the Philippine Consulate
IF SELF-EMPLOYED:
  • SS / GSIS / Driver’s License / PRC License
  • Business Name (DTI) or SEC Registration
  • Articles of Incorporation, By-Laws with SEC Registration Certificate and latest General Information Sheet if applicable
  • General Information Sheet
  • Financial Statements / Income Statement for the last 3 years
  • Photocopy of the Income Tax Return (ITR) for the last 3 years
  • List of Trade References (Suppliers / Customers)

PAGIBIG HOUSE LOAN REQUIREMENTS

1. Housing Loan Application with recent ID photos of borrower
2. Membership Status Verification Slip
3. Proof of Income
3.1 For Locally Employed, any of the following:
  • Notarized Certificate of Employment and Compensation (Pag-IBIG format)
  • Notarized Certificate of Employment and Compensation (Employer’s format) and latest one (1) month payslip
  • Income Tax Return/Certificate of Tax Withheld (BIR Form No. 2316) and latest one (1) month payslip
3.2 For Self-Employed/Other Sources of Income
  • ITR, Audited Financial Statements and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit
  • Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months)
  • Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.)
  • Copy of Lease Contract and Tax Declaration (if income is derived from rental payments)
  • Certified True Copy of Transport Franchise issued by appropriate government agency (LGU for tricycles, LTFRB for other Public Utility Vehicle or PUVs)
  • Certificate of Engagement issued by owner of business
  • Other document that would validate source of income
3.3 For Overseas Filipino Workers (OFWs), any of the following:
  • Employment Contract (with English translation if in foreign language)
  • Original Employer’s Certificate of Income (with English translation if in foreign language). If document submitted is photocopy, it shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
  • Other Proofs of Income, whether original or photocopy, shall be duly validated and certified/initialed by HDMF Information Officer assigned in the country where the member works
4. Photocopy (back-to-back) of one (1) valid ID of Principal Borrower and Spouse, Co-Borrower and Spouse, and Attorney-In-Fact, if applicable. The same ID must be presented during the conduct of borrower’s validation.
5. Authorization to Conduct/Credit Background Investigation
6. For OFW members, Special Power of Attorney notarized prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where the member is staying, if abroad

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