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Thursday, September 23, 2021

5 Basic Terms That You Need To Know Before Applying For A Home Loan


The most common way to purchase a house in the Philippines is through a loan from lending institutions. It offers different payment terms and conditions, amounts, and duration for Pinoys that may not be able to pay the house in full upfront. While it’s a great financing option, it may result in the opposite if you finalize your plan without knowing what’s in store for you. 


Before applying for a home loan, check this quick list of the basic terms that you need to know.


1. Principal


The principal is the total amount that you borrowed from the lending institution. It’s the main factor in calculating your monthly payments. Every time you repay your loan, a portion of it is dedicated to the principal. A lot of lenders deduct the principal early on in your loan, and the interest for the remaining duration of your loan term. 


2. Interest Rate


Interest rate is the percentage that the lenders charge for letting you borrow their money. In public lending agencies like Pag-IBIG, the interest rate ranges between 5.750% and 9.875% depending on your terms. Private lenders such as banks charge an interest rate as low as 1.25% to 9.50% depending on the fixed term years.


3. Loan term


Tenure, also known as the loan term, refers to the duration that you and lenders have agreed upon to make loan repayments. Within the loan term, you have to pay the balance, including the principal and interest rate, in full. Depending on the lending institution, the tenure can range anywhere from 2-30 years. The longer the term, the higher the interest rate.


4. Down Payment


Most housing loans let you pay a down payment to reduce your principal amount. It’s paid upfront when you take out the loan. Some lenders may not require a down payment, especially when the principal is low. Nonetheless, most lenders allow down payments up to to 20% of the principal amount.


5. Default


For any reason that you fail to pay your monthly repayments, a default happens. When you finalize your housing loan, you’re bound by the law to pay the agreed amount within the timeframe indicated in your terms and conditions. Some lenders can be more lenient, considering several missed payments to be a default.


One of life’s necessities is having a home, but have you ever had a place you can call your own? Here in BellaVita, we will highlight to you the importance of one of our brand pillars, Sakto sa Bulsa, or in other words, affordability.


In a time of great uncertainty, a voice of knowledge and reassurance can make all the difference. "Stay home" has been the consistent mantra of the pandemic, and having a home you love where you can safely shelter in place feels more important than ever. Our mission in BellaVita, to provide a quality and affordable living experience to the Filipino people, remains true and the same especially during times like this. 


Having said that, we are focused on fulfilling our mission by offering a house and lot for as low as P450,000 with a 22-square meters floor area and an average lot area of 36 square meters. It only takes Php 3,500.00 out of your wallet or bank account to reserve a unit with BellaVita. Monthly amortization for as low as Php 1,887 or just about P60 per day, cheaper than branded coffee or milk teas. Spending on your own home is a better investment, don’t you think?


BellaVita offers one of the lowest prices you'll ever see in the market. Furthermore, you can choose between Pag-IBIG or a bank to finance your dream investment.


For more details about BellaVita, please visit our Facebook page (https://www.facebook.com/BellaVitaLandCorp





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