Housing Loans

[Sarsi]

Chimes??


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Yes, bro.

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[Ry_Tower]

Made the reservation for a Robinsons' project in Greenhills. A new home by next year.

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Congratulations sarsi.

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[Sarsi]

Congratulations sarsi.

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Thanks, bro.

Talo kay boss eh.

Shopping day kami today, went to Toyota, Nissan, and met the broker. She decides. My vehicle purchase have to wait for another year or two.

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[Wh1stl3r]

Congrats bro Sarsi. Nice location.👍

[StockEngine]

Made the reservation for a Robinsons' project in Greenhills. A new home by next year.

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congrats lakas ng airbnb [emoji16]

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[EQAddict]

All housing loans use the diminishing interest method. I.e. more % of the payments go to servicing interest first before the principal. After time goes by, more % goes to paying off the principal. They really take their pound of flesh.

For example: 1 million loan. 10 years to pay. Fixed 5%. So thats 50% interest over 10 yrs bringing the total to 1.5 million.

Thats about 12,500 a month. Now for the first couple of years maybe 70-80% of that 12500 goes to paying off the 500k interest and the remainder goes to paying off the 1 million principal. So your remaining principal balance after the first few years is still close to a million cause you were paying for the interest first.

If you make a balloon payment (got a bonus etc) it has to be on the anniversary of your loan...but in this case they will deduct from the principal. The monthly payments DO NOT CHANGE. They will just shorten the term. Classic banks.

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[jut703]

I always get 1 year rates. The banks make a killing on the fixed term interest rates.

Go with your current bank and just say you want a preferred rate. Otherwise you move your business and your deposits to a more competitive bank. They will give in.



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Thanks bro! So for example the prevailing 1 year rate is 5.25% and the 5 year rate is 6.8%, in your experience, what is the rate for 2nd-5th year?

My fear is that I might get a cheap 1 year rate and then they milk me in the remaining years when I'm already locked in.

All housing loans use the diminishing interest method. I.e. more % of the payments go to servicing interest first before the principal. After time goes by, more % goes to paying off the principal. They really take their pound of flesh.

For example: 1 million loan. 10 years to pay. Fixed 5%. So thats 50% interest over 10 yrs bringing the total to 1.5 million.

Thats about 12,500 a month. Now for the first couple of years maybe 70-80% of that 12500 goes to paying off the 500k interest and the remainder goes to paying off the 1 million principal. So your remaining principal balance after the first few years is still close to a million cause you were paying for the interest first.

If you make a balloon payment (got a bonus etc) it has to be on the anniversary of your loan...but in this case they will deduct from the principal. The monthly payments DO NOT CHANGE. They will just shorten the term. Classic banks.

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Thanks for this bro. So the payment split between principal and interest is pretty much fixed.

Is there a way to haggle? I haven't submitted my income documents but I dunno if that helps lower the rate vs the original quote they gave.

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[EQAddict]

Thanks bro! So for example the prevailing 1 year rate is 5.25% and the 5 year rate is 6.8%, in your experience, what is the rate for 2nd-5th year?

My fear is that I might get a cheap 1 year rate and then they milk me in the remaining years when I'm already locked in.Thanks for this bro. So the payment split between principal and interest is pretty much fixed.

Is there a way to haggle? I haven't submitted my income documents but I dunno if that helps lower the rate vs the original quote they gave.

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Well if you get a 1 yr rate, they will reprice it every year based on current central bank interest rates. If you're confident rates will be steady for the next few years, then a 1 yr rate is the way to go. But if you are conservative you will go for the 3 or 5 year fixed rate pricing. But it will cost you either way , you or the bank are hedging.

As for haggling.....loan officers usually go up the food chain for approvals. Usually the first rate quotation you get can be haggled down 100 basis points or more.

Beware of fees, chattel, doc stamps, mandatory insurance etc. These usually make the 12th month payment much higher than the rest. Those can be haggled as well.



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[c_cube]

Well if you get a 1 yr rate, they will reprice it every year based on current central bank interest rates. If you're confident rates will be steady for the next few years, then a 1 yr rate is the way to go. But if you are conservative you will go for the 3 or 5 year fixed rate pricing. But it will cost you either way , you or the bank are hedging.

As for haggling.....loan officers usually go up the food chain for approvals. Usually the first rate quotation you get can be haggled down 100 basis points or more.

Beware of fees, chattel, doc stamps, mandatory insurance etc. These usually make the 12th month payment much higher than the rest. Those can be haggled as well.



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I have an existing loans na fixed rate for 3 yrs and 1 yr rate.

For me, mas okay fixed. Hindi nakakagulat. At ang iniisip ko dyan, habang tumatagal parang lumiliit yun binabayaran ko kasi dapat masmalaki na income ko in the future, pero kapag hindi lumaki ang income, okay lang kasi ganun parin naman binabayaran monthly.

Yun 1 yr rate minsan nagugulat ako sa interest eh biglang lumalaki pero kapag bumaba, hindi mo mararamdaman na bumaba.

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[ax30g]

Following this thread.

I'm currently I search for my bank loan since I'm almost done paying my dp.

So far, I've talked to PNB and Metrobank.

For Metrobank it's 5.88% fixed rate for 5 years plus bank fees. Mababa sana rate nila unfortunately, they don't allow lump sum payment which is a deal breaker for since I don't want to paying a huge amount for half of my life.

For PNB, its 6.88% fixed rate for 5 years plus 2.5% of the loan amount for bank fees. Sabi nila kaya dwa nila tapatan offers from other bank though subject for approval. What I like about them is they allow lump sum payment plus magandang kausap yung agent nila.

I reached out to AUB since they have a promo for this month. Big discount on their bank fees provided that your DP is fully paid before July.

I'll try to go to Security bank since I've read that they also have good rates.

Any other banks that you guys would suggest/recommend?

[EQAddict]

Congratz bro

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[Sarsi]

Congratz bro

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Thanks, bro. Jut's thread is very timely. Need to talk to my bank in the coming days. [emoji1]

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[EQAddict]

Nice place and location! Congratz bro.


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[istan]

May computation kasi yan. Total income minus debt, then naka cap yun exposure mo, para sureball makabayad ka

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[Sebastian Bach]

Anyone here availed of a housing loan recently? What rates did you get?

Specifically, I'm looking for a 5 or 10 year loan. I've made preliminary inquiries on some banks, and the rates seem quite high. Have not haggled yet or given them my COE and income statements yet.

BPI has the lowest 1-year rate at 5.25%, 5-year rate at 6.8%, and 10-year rate at 7.5%. PSBank so far is the highest at 6% for 1 year, 6.88% for 5 years, and 8.5% for 10 years.

Any tips on how and where to get the best deals will be greatly appreciated. Thanks!

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Got one of my condo sa BDO last year 5yrs fixed 5.88%. BPI gave me 5.25% for 5years din but it was too late na. It really helps if you have a good relationship with a branch manager or a preferred client perhaps. Negotiate directly with the branch manager, maybe he/she could lower down the rate of 6.88%. (6.88% din initial quote sakin ng BDO initially from other branch). Goodluck!
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[kaidemitsui]

Got one of my condo sa BDO last year 5yrs fixed 5.88%. BPI gave me 5.25% for 5years din but it was too late na. It really helps if you have a good relationship with a branch manager or a preferred client perhaps. Negotiate directly with the branch manager, maybe he/she could lower down the rate of 6.88%. (6.88% din initial quote sakin ng BDO initially from other branch). Goodluck!
.

Hi. BDO offered me 6.88% fixed for 5 yrs. Ok na ako dun. Ang problema 6 months lang validity ng approval ng loan. Dahil sa red tape ng BIR and/or kapabayaan ng developer, inabutan na ng expiry yun transfer ng title saken. And now, BDO need to re-process yung loan with the their prevailing interest of 8.00% fixed for 5 yrs.
Any tips on how to deal with the bank? How should I ask for the manager and how should I interact with them.

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[jigeloh]

Hi. BDO offered me 6.88% fixed for 5 yrs. Ok na ako dun. Ang problema 6 months lang validity ng approval ng loan. Dahil sa red tape ng BIR and/or kapabayaan ng developer, inabutan na ng expiry yun transfer ng title saken. And now, BDO need to re-process yung loan with the their prevailing interest of 8.00% fixed for 5 yrs.
Any tips on how to deal with the bank? How should I ask for the manager and how should I interact with them.

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Submit mo yun bdo quotation sa ibang bank, Metrobank or bpi gives me the best rate of 6.5%, then submit other Banks quotation to your prefferedbank (bdo).

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[reiman13]

Hi. BDO offered me 6.88% fixed for 5 yrs. Ok na ako dun. Ang problema 6 months lang validity ng approval ng loan. Dahil sa red tape ng BIR and/or kapabayaan ng developer, inabutan na ng expiry yun transfer ng title saken. And now, BDO need to re-process yung loan with the their prevailing interest of 8.00% fixed for 5 yrs.
Any tips on how to deal with the bank? How should I ask for the manager and how should I interact with them.

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Nag increase talaga interest rates due to inflation. Mine is now at 8.5% for 5 years. Na haggle ko pa yan for rate reduction since repeat customer na ko. Try to talk to manager na lang muna, pag firm na sila then try to look for other banks na mas may lower rates. Pero most likely in the same range din ibibigay nila.

[ray_noel]

Nag increase talaga interest rates due to inflation. Mine is now at 8.5% for 5 years. Na haggle ko pa yan for rate reduction since repeat customer na ko. Try to talk to manager na lang muna, pag firm na sila then try to look for other banks na mas may lower rates. Pero most likely in the same range din ibibigay nila.

8.5% * 5years po ba calculation? Next proj ko kasi sariling bahay... para ready to go na once decided...


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[papi smith]

Nag increase talaga interest rates due to inflation. Mine is now at 8.5% for 5 years. Na haggle ko pa yan for rate reduction since repeat customer na ko. Try to talk to manager na lang muna, pag firm na sila then try to look for other banks na mas may lower rates. Pero most likely in the same range din ibibigay nila.

Agree, since re process and nag revise Ng rates you better do your research with other Banks first to validate the increase, then negotiate with whoever gives the best rate, good luck