Interest Rates When Buying A House?

[TedDBayer]

I was just in Cebu looking at houses. I plan to come back soon and rent a place until I decide if and where I'd like to live. I didn't see enough in 2 weeks. I saw new housing developments and interest rates were 10%. I have money and a mortgage free house in Canada, but if I buy I'd rather put down a deposit and pay but not at that interest rate. Is that a normal rate? What are they paying on investments?

 Mortgage rates at home are about 2.5% on a 2 year term.

Edited February 24, 2014 by TedDBayer

[Thomas]

Interests in the Philippines are much higher in general than in our home countries. 10 % is normal for real estates, but dropping. I were told recently at this forum, there are interests at 6,5-7 % now.

 

NOTE! If you borrow in pesos, the effects of the interest difference is less than it SEEM, because the Filipin inflation is around 5% higherr than in our home countries.

 

The most common loans in the Philippines have 40% interest per MONTH, so compared to that is 10% very litle   :)

[billygoat993]

Maybe 10% is in house but its too high my wife had been offered 5.5 by HSBC and BdO at 6.5% per annum but she chose Allied which is now owned by PNB and the rate is 5.5% her business account is at Allied\PNB and it was not a peoblem for her to borrow. She was asked for Income tax Returns for 3 yrs, Statement of account from banks, collateral which they appraised 70-80% but she only borrowed a small amount which didn't cause her too much trouble. We are not married and even if we are since my papers are not valid nor my assets in Canada are not valid here it was not an advantage. It also helps that she knows the VP and her business is just in the same bldg.

In house financing do not require too much paper works since you go direct to the builder but if its a builder/developer like BRitanny, Ayala they ask for paper works.

Edited February 25, 2014 by billygoat993

[Thomas]

It also helps that she knows the VP and her business is just in the same bldg.

5,5 %. That's very good for being Philippines.

I believe it did MORE than help, was the main factor  :)

[billygoat993]

Thomas compared to other bank rates its good enough plus less paper works. I think that time they gave a good interest rate since most of her account is in the same bank. She was able to recommend a friend married to a British national and the rate was 6.5%per annum no bank account in the said bank. Every year the rate changes here so far the lowest is still 5.5%

Edited February 25, 2014 by billygoat993

[sexy.rouge24]

There are a lot of banks in cebu. if you have your broker/agent with you. he/she must accompany you with that.

 

yes it's true some banks starts from 5.5% up to 12%. bank approval now adays here in cebu will took you from 5 days to 1 month. it depends with your documents and status..

 

Good Luck and thanks for choosing cebu as your next home :)

[Geoff Thomas]

Probably better to remortgage your house in Canada, take out some cash and rent it out to pay the mortgage, then have some cheap cash available for here.

Just a thought, depending on your situation

[Thomas]

Probably better to remortgage your house in Canada, take out some cash and rent it out to pay the mortgage, then have some cheap cash available for here.

Just a thought, depending on your situation

I have thought such as RESERVE IF I don't get a decent offer for my house.

(Person type, which want it as year around home, usualy can't afford what I want for it,

and other person type, who can afford it, only want to live such issolated during summers...    But I would prefer to sell it to avoid risk geting trouble with tennants. My house is far from my family, which I plan to visit once a year, so I don't want to need to go here to check it. But I doubt the Swedish bank will approve a biger loan, I believe I wouldn't even get the sum I loan now, if they would check my TAXED income now, because I'm "to good" at acounting, so I need to pay very litle income tax for my business  :)

(=Much tax deductions are allowed, but iẗ́'s risk the bank don't look at my income, but at the taxed income, which is much less in my case.)

 

Plus IF I make a biger investment in real estate in Phils if I start a business, which need expensive real estate, then I can afford to make it biger if "I"  *    can  take a loan at the Phils real estate.

 

*I know foreigners can't own more than max 40 % of the LAND (through business) or none otherwice. If buying a biger real estate in Phils and take loan, then make loan in same proportions as ownership, so I don't risk to end up with the whole loan but no real estate  :mocking:

 

((In any case I want to borrow as much as I can as long as interest is max 10 %, because if I don't need it, then I can use it to invest in e g shares, because in average I have earned rather much more than 10 % per year of that. Until now...  :)

[Braddo]

I am selling my house on the other side of the island CEBU Asturious walk in walk out fully furnished new pool P5M negotiable

 

Main house 330sq mtrs small house 35sq mtrs land nearly 700 sq mtrs

 

Heaps more pics if you want them

 

Cheers

[billygoat993]

Is it a gated community? Is the title in your name/wife, updated Rpt land and improvement? Can you pls post photo of house thanks.