In-House Financing

In-House Financing in the Philippines

Are you planning to avail a house but you have no documents to provide?
In-House Financing might be the a good fit for you, lets review if you are qualified for this Financing.

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At In-House Financing, clients are directly paying the monthly amortization to developer, before that you are going to pay the required Down Payment.

In-house financing has the highest interest rate of all financing options, usually at 14% to 18% depends on developer. Clients should understand the way the interest rate were computed. Some of clients thought a 14% or 18% will be added on top of the Selling price and will be divided to the years of payment, no it's not.

Here's how to compute, example for 10 years at 16% interest rate.

Total Price is 1 Million, payable in 10 years at 16% interest
Let say, Standard payment of Developer is 10% Down Payment and 90% Balance to Financing
900,000 is the 90% Balance
Factor Rate for 10 years at 16% interest is 0.0167513

Pay the 10% or might be 20% Down Payment to developer, the higher the DP the lower your Balance and will give you a lower monthly Amortization.

If, 10% DP and 90% Balance in 10 years at 16% interest
Monthly Amort. = 900,000 x 0.0167513
Monthly Amort. = 15,076.17 per month

If, 20% DP and 80% Balance in 10 years at 16% interest
Monthly Amort. = 800,000 x 0.0167513
Monthly Amort. = 13,401.04 per month


If you will pay a Spot 10% DP or 20% DP, you will be entitled for discount that may affect to your payable balance. As shown above the lower the balance, the lower the monthly amortization with our interest rate at 16% interest. Take note, every developer has different interest rates on its In-House Financing.

The process is just the same as Bank or Pag-IBIG, required documents are: Certificate of Employment and Compensation / Source or Income / Bank Statement / Remittance Slip

Clients are still require any of the above requirement because the developer is undergoing a preliminary background check to it's buyers to make sure clients have the capacity to pay its commitment.


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About the Author

Jerome Morada

Realtor & Webmaster

Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

1 (mga) puna:

  1. so, 900,000/ 13,401.04 = 67.16 months/12 = say 6 yrs? am i correct?

    can i doubled my monthly payment to shorten the payment term?

    thanks!

    ReplyDelete

 
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