Mortgages in the Philippines

My wife wants us to buy a house in the PI in the near future. We already have one back in the UK, rented out, with a mortgage still on, and I am loathe to pull in all my savings and use all our spare cash to put down buying another property.

She tells me she can put down a deposit, and get a mortgage herself, but I can\'t see how she can without some sort of an income, a real job, security. Is it possible for her to do that, just promise the bank she\'ll make the payments? 

What sort of systems exist for buying houses? I know they have various interesting ways to pay for lesser things, like part payments, \'Three Gives\', \'Five-Six\', \'Lay Away\', and whatever else they call it.

I would assume the lending authority retain the ownership of the property until we make the last payment, which flays us open to any skulduggery or deception.

And finally, is it worth buying now, are prices coming down, going up? I have little knowledge of the housing scene.

We are in Angeles City.

And finally, is it worth buying now, are prices coming down, going up? I have little knowledge of the housing scene.

My impression over the last few years is that houses built by developers have increased, but that is not the route that most people take. Unlike developed countries, it is far more common to buy a lot and have a house built to your own design. Houses built this way are often built to low Philippine standards and would need extensive upgrading and refurbishment to bring them up to western standards.

Lot prices may have increased particularly around the larger cities, but it is difficult to tell. Those who have inherited land seem to be split into two camps, they either look on it as a nest egg to sell to a rich foreigner or need the money for schooling, medical etc and will sell at a low price.

If you are looking for land almost everyone seems to have some to sell.

Colin

[GregW]

King, she may be thinking about Pag-Ibig.  A government run home loan funding program.  Looks like she\'ll qualify but they require applicants to have been contributing to the fund during their working years.  However, it appears that anyone may make a single lump sum contribution to qualify.  It may be a program that you would be interested in.  Here is a link to find out more;

http://www.pagibigfund.gov.ph/benpro.aspx

Cheers Greg, I\'ll check the link out.

Colin, I\'d personally prefer to buy land and then have a place built actually. Up to a quality, rather than down to a price. I\'ve seen the way local guys work, unless you follow almost everything they do, and getting a personally recommended builder would be the only way I could go.

[dylanaz]

Cheers Greg, I\'ll check the link out.

If it is Pag-Ibig - YOU BETTER MOVE FAST !

It can be likened to an insurance policy that has a 2 year period before you can make a claim.

Goyo is correct you have been able to just pay all of the 2 year payments at once and get the house IMMEDIATELY !

Unfortunately many fat pockets took advantage of that and sold dozens of their own properties, but having people financed who didnt even know they were getting financed...

As a result they got richer and the homeowners didnt even know they owned a home or had to make payments...

The newspaper had this information around a month ago and noted that Pag-Ibig may be revised to actually require a full 24 months before you can get a house - regardless of ability to pay a lump sum.

Get in before the change - and you may be ok... not sure

[c_a_p_t_a_i_n_r_o_n]

Gloria and I looked into PAG-IBIG in 2008, for slightly different reasons........your wife can join as a member but won\'t qualify for loan unless she has verifiable job or business income.

Gloria and I looked into PAG-IBIG in 2008, for slightly different reasons........your wife can join as a member but won\'t qualify for loan unless she has verifiable job or business income.

I don\'t see her getting any sort of a job in the near future actually, so it may be a non-starter for us.

We have a niece living with us, a nurse, who might avail, but that is when it starts getting complicated with property rights etc. Might be better just to scrat together all my little chunks of savings and get some land bought. House can come later.

[dylanaz]

Gloria and I looked into PAG-IBIG in 2008, for slightly different reasons........your wife can join as a member but won\'t qualify for loan unless she has verifiable job or business income.

I don\'t see her getting any sort of a job in the near future actually, so it may be a non-starter for us.

We have a niece living with us, a nurse, who might avail, but that is when it starts getting complicated with property rights etc. Might be better just to scrat together all my little chunks of savings and get some land bought. House can come later.

... or ask nicely to the caseworkerer what paperwork is needed for your wife who happens to be married to you - to use youre retirement income or whatever you have as her own.... its been done before.... or so I have heard.... from the caseworker herself....

But that was before these new changes happen... it may be all over then... if then is not already now...

... or ask nicely to the caseworkerer what paperwork is needed for your wife who happens to be married to you - to use youre retirement income or whatever you have as her own.... its been done before.... or so I have heard.... from the caseworker herself....

But that was before these new changes happen... it may be all over then... if then is not already now...

Unfortunatly I won\'t be retiring for another decade, the way I am going. 

I don\'t know if my salary income would apply for her, as a couple, joint income etc, or whether I could \'employ\' her. Or some other such deal.

There are othe RPr Government Agencies that use tax payers money for home mortgages and the RP SSS system.

We have dealt with National Home Mortgage, (RP Government Agency), twice with their foreclosers and one my wife re-mortgaged, (15 years @ 9% annual interest), since the deal was to good to pass up and didn\'t have the cash in hand at the time.  Getting 2.5 rent above payment, may not pay off anytime soon?

WARNING, don\'t expect things to go quick, fast and in a hurry dealing with these agencies...........PERIOD!!!

It took over a year with the 1st repo, paying in CASH to get a title. It took a year to know where and how to make payments on the 2nd repo.

Our 1st buy, (our house), from a Pinoy private owner 6 months to get a title and the 2nd direct buy took 2 years to get a title with the BIR screw-ups

BTW, you will pay the BIR capital gain tax from the title holder on a forecloser to the mortgage company/bank and again from the mortgage company/bank to you. All that might be included in the price offered?? It wasn\'t in our ordeals.

This ain\'t the USA or the UK!!!
B-Ray

Ooer, this land buying game sounds like it could be painful. 

I shall go in with my eyes wide open, if we ever do buy anywhere.

[eatc7402]

I arrived in the Philippines two months ago. I am a US Citizen with a fairly substantial
Social Security and retirement income on a monthly basis. What I do NOT have is an
account full of cash. I am 64 years old and about to marry my 51 year old Filipina
fiance.

I am being told that my chances of getting a bank approved financed mortgage
are slim to none because of my AGE.

How true is this in the RP?

What other option might I have to finance a property here?

eatc7402

Totally guessing here, but I\'d expect them to want some sort of guarantee they can get their money back should you flee the country, stop payments, die etc. Just like any mortgage company back in the west does. All they want is to cover the risks.

[suzukig1]

Gloria and I looked into PAG-IBIG in 2008, for slightly different reasons........your wife can join as a member but won\'t qualify for loan unless she has verifiable job or business income.

I don\'t see her getting any sort of a job in the near future actually, so it may be a non-starter for us.

We have a niece living with us, a nurse, who might avail, but that is when it starts getting complicated with property rights etc. Might be better just to scrat together all my little chunks of savings and get some land bought. House can come later.

... or ask nicely to the caseworkerer what paperwork is needed for your wife who happens to be married to you - to use youre retirement income or whatever you have as her own.... its been done before.... or so I have heard.... from the caseworker herself....

But that was before these new changes happen... it may be all over then... if then is not already now...

Here\'s one way to use the foreigner\'s income to qualify for a loan:

1) Assuming that you find some lending institution that is willing to work with you.  If buying from a developer, it should be no problem.  If using a bank you will have to find a bank that is friendly to you.
2) The foreigner has to sign a legal document (notarized) stating that you have no interest in the property that is being purchased.
3) The foreigner has to sign a legal document (notarized) stating that the money to buy the property is not coming from you but is coming only from your Philippine citizen spouse.
4) To make payments the money is gifted from the foreign spouse to the citizen spouse and the payments come from the citizen spouse.  Best to use checks from the citizen spouse.
5) With all of the above the lending institution will let you use the foreigner\'s income to qualify for the loan.

Is this legal.  Probably 99% of the lawyers will say yes (because maybe it is and they want your business).

Anyway, I know of at least one case where this has been done.

[eatc7402]

I am being told that my chances of getting a bank approved financed mortgage
are slim to none because of my AGE.

What I meant by that statement is that the several real estate agents I have
come into contact with seem to treat me as an \'automatically unqualified\',
buyer because of my age. What I am trying to determine is whether being
over the age of SIXTY makes  foreigner unqualified for bank mortgage
simply because of gray hair!

Obviously each situation is unique, but I\'m trying to determine if I\'ve
got 2 strikes against me from the get-go.

Second, my impression of real estate agents (so far) here in the
RP has not been very encouraging... they seem to expect the
\'rich foreigner\' to throw down several thousand pesos or I am wasting
their time. Well EXCUSE ME
but who is the customer... and who is the service provider!

eatc7402