Condo Purchase Negotiating and Who Does the Broker Work For

[Jollygoodfellow]

19 hours ago, KenM said:

If folks look at the link I provided, the maximum age is 65 to take out, not complete the loan. The loan terms for condos are shorter than home loans and vary.

Yes but let me just show you what some of the banks say rather than a blog link that could be written by a freelancer on fiverr.  Anyway if you are looking into a loan then you will know the requirement's of the lender. Makes sense to me that lenders want their money back before retirement age and as you can see 65 at maturity of the loan in these examples. I doubt if being a foreigner or buying a condo would be any different and BDO goes to 70 years of age.

Robinsons Bank

Eligibility
At least 21 years old but not more than 65 y/o upon loan maturity
Foreigner with appropriate Alien Certificate of Registration

BDO

Step 1: Check Your Qualifications
At least 21 years old but not exceeding 70 years old at the end of the loan term
Filipino Citizens or Foreign Nationals
Minimum gross income of P50,000/month or its equivalent in US Dollars
With stable source of income from employment or business

 

Security Bank

At least 21 years old, but not more than 65 years old upon loan maturity
Earning a combined monthly income of P50,000
Has been continuously employed for at least 2 years
For the self-employed, must be operating a legitimate and profitable business for the last 3 years

 

BPI

1. Who are eligible to apply for a BPI Family Housing Loan?

Available for Filipino citizens who are of legal age but not more than 65 years old upon maturity of the loan.

 

[KenM]

These are the terms sent to me by BDO. No response from BPI yet. BDO will treat you as a Philippine if you are on the SRRV without others on the loan with you. 

Please see the sample computation below : 

 

BDO HOME LOANS (Filipino Borrowers)
SAMPLE COMPUTATION as of		Oct 6, 2022
Loan Amount	5,000,000.00
Term (in months)	120	180
Rate Fixing	10 years term	15 years term
6.25% for 1 year	56,140.05	42,871.14
6.75% for 2 years	57,412.06	44,245.47
7% for 3 years	58,054.24	44,941.41
7.88% for 5 years	60,347.22	47,436.87
*Minimum Loan Amount of P1,000,000.00
*Prevailing home loan promo rates. Subject to change without prior notice.
*Prevailing interest rate on date of loan release will apply.
*Please be advised that the monthly amortization computation shown herein is indicative only. The Final Amortization will be provided after the loan release
Estimated Bank Fees (Including first year of Insurance) is 2% - 3% of Loan Amount

 

 

*****

 

BDO HOME LOAN / Foreign Borrowers
SAMPLE AMORTIZATION as of		Oct 6, 2022
Loan Amount*	5,000,000.00
Term (in months)*	60	120
Promo Fixed Rates***	5 years term	10 years term
1 year – 9.99%	106,210.62	66,047.68
*Prevailing BDOFC home loan promo rates. Subject to change without prior notice.
*Prevailing interest rate on date of loan release will apply. Please be advised that the monthly amortization computation shown herein is indicative only. The Final Amortization will be provided after the loan release.
Estimated Bank Fees is 2% -3% of Loan Amoun

[Mike J]

6 hours ago, KenM said:

These are the terms sent to me by BDO. No response from BPI yet. BDO will treat you as a Philippine if you are on the SRRV without others on the loan with you. 

Please see the sample computation below : 

 

Wow.  At those rates banks here should be making a good profit unless they have a high pecentage of non-performing loans.

[BrettGC]

1 hour ago, Mike J said:

Wow.  At those rates banks here should be making a good profit unless they have a high pecentage of non-performing loans.

The flip side is they're paying higher than expected on term deposits. Still not enough to cover inflation but much higher than most countries.

[KenM]

BPI says they won’t loan to foreigners. But I have seen many differing reports. I think this agent/office may be confused. That or they changed their policies recently. 

Interest rates are high and not locked long-term.  

[BrettGC]

35 minutes ago, KenM said:

BPI says they won’t loan to foreigners. But I have seen many differing reports. I think this agent/office may be confused. That or they changed their policies recently. 

Interest rates are high and not locked long-term.  

Same as anywhere, they won't lend to you without a credit rating.  Unfortunately your credit rating in your country of origin means nothing in PI.  I've begun the credit rating process by rather than paying cash for our car, being the secondary on our secured car loan here rather than the primary - which they wouldn't allow -  thankfully my wife has an excellent rating so this wasn't an issue for them.  I can only imagine this applies to all levels of personal finance from credit cards up to home loans. We have no plans to finance anything really, it just gets me listed in their system in case the need arises.  

On the BPI issue, they outright refused credit at any level for me as am on a visitors (tourist) visa; they're worried I have no ties here was the explanation given.  

[KenM]

BDO will lend and treat you as a local. BPI used to but at least one representative is telling me they won’t. I’ll update if anything changes but I am dealing with the Cebu area loan officer. I think income and collateral are acceptable to them. 

[Dave Hounddriver]

4 hours ago, KenM said:

BDO will lend and treat you as a local

It seems that each Philippine bank is different in their mortgage policies.  There was a time when I looked into financing a house in Philippines.  It was to be a joint effort between me and my spouse as foreigners cannot own the land.  The bank told me they would only lend 50% of the purchase price with a minimum mortgage of 1 million pesos.  I thought they were politely telling me to F off but I wonder if the BDO is telling you something similar?

[conwat]

Following this thread with interest. I was in the Philippines last month and viewed a condo. Very reasonably priced.  I'm not looking for a penthouse! Just a place for me to stay during the winter months and my partner can live there full time.  Met the broker and she brought us to the development office.  Some of the condos are completed. Guys working on site finishing the rest. Showed us a few different units and as I'd be a cash buyer there's a nice discount for spot cash. Done a bit of research on the broker and she does seem to have made a nice few sales. I'll look into it more when I'm back in a few months.  Any tips/advice most welcome!

[Dave Hounddriver]

23 minutes ago, conwat said:

Any tips/advice most welcome!

Location, location, reputation of builder, location.