Let us see if bank financing is the best option for you.
Bank financing is a financing option to avail of property, even cars and personal loans. At bank financing, or banks, has the strictest process on loan approval of it's clients, many documents to submit, certain income will be required along with some collateral.
Certificate of Employment and Compensation (for local)
Job Contract (for OFW)
Photocopy of 3 months bank statements
Latest Income Tax Return
2 valid (Gov't) Identification - photocopy and with 3 signatures
Proof of Billing
4 pcs 1x1 pictures
Photocopy of Passport
If you are going to avail at a developer, you need to pay the Down Payment(DP) which mostly 20% of the Total Price. Some are offering 10% down payment or 30% down payment.
The lower the down payment at bank financing means a high appraisal of the property you are going to avail but a usual rate in the Philippines is 20% DP.
Total Price is Php. 2 Million less required 20% DP is Php.400,000 = Loanable Amount is Php. 1.6 Million
At above example, your Loanable Amount at bank financing is Php. 1,6 Million, you may now compute for your Monthly Amortization with the table below.
Sample Computation: Suppose an 8% interest rate and you want to avail at 5 years.
MA = LA x (Factor Rate of 5 Yrs at 8%)
MA = 1,600,000 Million x .0202763943
MA = 32,442 per month
where: MA is Monthly Amortization, LA is Loanable Amount
For Net Disposable Income (NDI) Requirement
NDI = MA / 30%
NDI = 32,442 / .30
NDI = 108,140 Income per month
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