Comparative Study on the different Philippine Real Estate Financing Schemes.

Cash Deferred Cash Bank Financing In-House Financing Pag-Ibig Financing 1.) 0% interest, Nothing much too 1.) 0% interest, Nothing much to 1.) A client can borrow with a lending 1.) Lesser question from the 1.) A buyer can loan the amount needed Advantages worry about on mortgages; worry on mortgages; institution such as banks and developer of how you can to purchase a home through this 2.) With more perks and discounts from 2.) Extended Payments of a Cash financial institutions; come up with finances in government lending institution. developers. basis property; 2.) Current Prevailing rates are lowers buying the property 2.) Building equity is easy with an amount 3.) With some perks and and are competitive with other 2.) Mortgage Redemption of a buyers’ monthly paycheck being privileges from buyers with banks and government agencies Insurance is required in remitted through this institution. small some discounts. such as HMDF; case of buyers loses 3.) Interest Rates are starting from an 3.) Mortgage Redemption Insurance is his/her life from accidents average of 6% to 12 % p.a. depending required in case of buyers loses or unforeseen disasters. on the value of the property and the his/her life from accidents or given time frame of payment. unforeseen disasters. 1.) Paying cash requires lot of payments 2.) Paying cash requires lot of 1.) A clientele will undergo credit 1.) Interest rates for In-house 1.) Equity payments may vary in many Disadvantages to be paid outright after the sales payments to be paid outright investigation wherein source Financing are at 14% to ways. An employer remits a standard these in which it includes real estate after the sales these in which of income and finances will be 18% interest p.a. of a P 100.00 to an employee. However tax, documentary stamps and Title it includes real estate tax, scrutinized by the credit depending on the scheme increasing the employer remittance if Transfer Certificate payments, Legal documentary stamps and investigator; offered by the developers in case the employee is looking for a fees and others. Title Transfer Certificate 2.) The property will be appraised on a given time frame. property beyond the minimum payments, Legal fees and first by its hired real estate payment. The buyer should coordinate others. appraisers before giving you with the employer increasing the the needed amount of loan. chances of the employee to acquire the 3.) Loan Rates can be fixed or may property through increase remittance require changes if ever it is on and diverting some of his/her salary to extended term depending on the HMDF fund. the economic and market 2.) Requires seminar from the HMDF and condition will conduct credit investigation (same 4.) Payments for other necessary as banks) before granting a loan on the documents and other legal acquired property. matters are not covered on the 3.) Assessments are needed to make a payments. loan from the HMDF would sometimes be accepted or rejected. This is excellent for investors or buyers who This is excellent for investors or buyers This is better for investors or buyers who have This is good for buyers who do not This is advisable for affordable housing segments. Remarks have excess cash. who have excess cash but are cautious little cash but are able to finance their property want to be bothered on their However, acceleration of payment is necessary for enough about the market conditions. buying with needed help from the banking purchases of property, however some buyers if they intend to loan a larger amount of P sector. of the interest high compared to 2,000,000 to P 3,000,000.00. other financing schemes SOURCE: Pampanga Real Estate TV | Pampanga Real Estate Trend, Guide and Review.All Rights Reserved. CRB Benedict Baluyut, RMT

Comparative Study on the different Philippine Real Estate Financing Schemes.

by Benedict Baluyut on May 12, 2010

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Comparative Study on the different Philippine Real Estate Financing Schemes. — Presentation Transcript

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