Why Becoming a Homeowner Isn’t as Hard as You Imagined

Row of houses in a subdivision

Row of houses in a subdivisionHome ownership is usually just a pipe dream to many Filipinos. Some are too preoccupied supporting loved ones financially, while others lack a reliable job with high income to commit to paying decades of mortgage.

The good news is, buying a property in the Philippines is actually less hard than you think. Here are six reasons why it’s realistic for you to become a homeowner sooner than later.

1. You Can Buy an Affordable House Outside Manila

Any Lancaster review from websites such as Real Estate Hub would tell you that CALABARZON has a lot of stock of affordable housing. This is especially true in Cavite where you can purchase a four-bedroom, single-detached house for less than a two-bedroom condominium in Pasig City.

2. You Can Qualify for a Loan without a High Credit Score

Most lenders look at borrower creditworthiness when loaning money, but having bad credit wouldn’t automatically disqualify you. If your credentials aren’t good enough for the banks, you can always apply for a Pag-IBIG housing loan or borrow directly from the developer.

3. You Can Negotiate a Better Deal

In any major sales transaction, like a property purchase, nothing is really set in stone. It’s acceptable to ask for discounts or haggle about the interest rate. You’d be surprised how generous developers, real estate agents, and lenders could be.

4. You Can Pay the Down Payment in Installments

While you can’t borrow 100% of the property’s selling price, you don’t have to pay for your entire share upfront. Many developers offer flexible payment schemes to make the down payment easier to manage.

Take note, however, that the first installment is usually used for unit reservation, which is non-refundable and has an expiration. You can’t get it back if you change your mind or fail to pay the subsequent payments.

5. You Can Lock in the Interest Rate for Multiple Years

Most housing loans in the Philippines have changing interest rates. This means that interest rate initially offered to you is subject to re-pricing. Fortunately, many lenders allow you to lock in a particular rate for a specified time.

For instance, borrowing from the Pag-IBIG Fund lets you have a fixed rate for up to 30 years.

6. You Can Prepay the Loan

A 15-, 20-, or 30-year mortgage can be a burden and a serious financial commitment. Regardless of the term, you can pay it off faster if you lender allows it without charging you any penalty. With the right prepayment strategy and discipline, you can finish your mortgage years earlier.

Be an informed homebuyer to understand how things work, and know the cards you can play. With adequate knowledge and sound decision-making, you can be a proud homeowner in no time.