Do I need to immediately apply for a Bank Home Loan while still paying for the 20% Downpayment?

We do advise that you apply immediately for a Bank or PAG-IBIG Home Loan, soon as you have paid the Reservation Fee, whether your preferred house is currently being constructed or scheduled for construction at a later date.  By doing this, you should be able to determine early on if you qualify for a bank home loan and make the necessary adjustments to your payments.

Housing Loan Processing Periods
Different banks have different loan processing periods. Some banks like Security Bank process loans as fast as 5 working days. While others, like Metrobank, take as long as 15 days. Below is the list of loan processing periods of major banks:

  • Security Bank – 5 working days
  • BDO – 5 working days
  • Chinabank – 7-10 days
  • RCBC – 10 days
  • PNB – 10 days
  • Unionbank – 10 days
  • Landbank – 15 working days
  • Metrobank – up to 15 working days
  • Pag-IBIG on the other hand can approve loans in 17 days. The borrower can claim the proceeds of the loan, three days after post-approval compliance.

Prior to approval, the bank (or other financing institution) will dig into factors first such as Age, Income bracket, Nature of work or profession, Property type (e.g. vacant lot, house and lot, condo, townhouse), Location of the property, Current market value of the property, to check your capacity to pay your monthly dues. They will ask for your employment and/or business records, including your income statements.

The property you are looking to get financed will also be reviewed, to assess its value or the viability of the project to be completed, if you’re applying for a construction or renovation loan.

From all these data they collect, you will be offered a loan package with the terms the institution thinks are best for your case – interest rates, years to pay, monthly amortization.

Financial capacity and preparation is Key.  The more likely you are able to pay the 20% Downpayment and Other Charges upfront and immediately secure a Letter of Guarantee (LOG) from the bank, the faster you can move-in to your new home.

Do you offer special discounts for Spot Cash or Spot DP?

Of course, we do for Spot Cash.

For Spot Downpayment, the discount will depend on the project being developed and on special occasions only, as advertised and announced by our Marketing and Promotions Department on our Facebook Page.

Both Spot Cash and Spot DP, however, are subject to approval by the GTR Top Management and usually on a case-to-case basis.

How many checks should I issue for the 20% Downpayment?

A. For Ongoing Construction

The number of checks you will issue for the 20% Downpayment will depend on:

  1. the date of Reservation,
  2. the expected date of completion or turnover of your unit (RFO),
  3. and your preferred move-in date.


Reservation Date:  January 2019

Date of Completion of House Construction (RFO): July 2019

Your preferred Move-in date: October 2019

Number of Checks to Issue:  9 Checks (from Feb to Oct 2019)

Take note that it normally takes 2 to 3 months for the processing of the Transfer of Title, and utilities (water and electricity) connection. In the example above, the unit is RFO by July 2019, so we’ll add 3 months for the processing of Transfer and Move-in (Aug, Sep, Oct).

B. For RFO (Ready for Occupancy) Units:

The 20% Downpayment is up to 6 months only so you are expected to issue 6 monthly checks.

How quickly can I move into my house?

You can take physical possession of your house or lot once the following steps have been completed:

  1. Acceptance Form has been signed (unless the property is otherwise deemed accepted).
  2. All required documents pertinent to the sale of the property (i.e. Contract to Sell, Deed of Sale, corporate papers, etc.) have been signed and submitted.
  3. All amounts due under our Contract:
  • the 20% Downpayment,
  • payment of Other Charges/Service Fees for the utility connection (water, electicity, transfer fees), have been paid.
  • Letter of Guarantee (LOG) from the Bank or Pagibig.
I like to purchase a Property. How do we proceed?

1. Pay for the Reservation Fee at the GTR Head Office only.  The said fee is valid for 30 days.

2. Fill out and sign the following official GTR documents:

  • Reservation Agreement (RA)
  • Buyers Information Sheet (BIS)
  • Terms of Payment (TOP)
  • Buyer’s Orientation Checklist (BOC)

Only the Principal Buyer and Co-Owner is allowed to sign the above documents.  In cases where the principal buyer is abroad or out of the country, a Letter of Authorization or SPA (Special Power of Attorney) is required,  granting an agent the authority to act on behalf of the principal buyer (the person granting this authority) under certain, specified circumstances.

3.  Get your documentary requirements ready within 30 days upon reserving the property or unit and submit to GTR by emailing to admin@goldentigerrealty.com or hand-carried to GTR Head Office.  The following requirements are:

Basic Requirements:

  • Bank Application Form
  • Marriage Contract (if applicable)
  • Two (2) Valid IDs
  • Latest Income Tax Return / BIR Form 2316

Additional Basic Requirements:

For Employed

  • Certificate of Employment with Compensation and Tenure
  • For OFWs/Non-Residents
  • Certificate of Employment / POEA Contract
  • Proof of Remittance/Payslips (for the last 6 months)
  • Consularized Special Power of Attorney (SPA)

For Sole Proprietorship

  • DTI Registration
  • Audited Financial Statements for the last three (3) years
  • Bank Statements
  • Company Profile
  • Complete List of Customers and Suppliers (including contact person and numbers).

4.  Issue Post-Dated Checks for the 20% Downpayment (within 30 days from payment of the Reservation Fee).

5.  Apply for a Bank Loan. Note that you will also have to pay certain miscellaneous fees like handling fee, appraisal fee, documentary stamp tax, notarial fee, and registration fee.  Chinabank, for example, lists their Insurances and Fees required:

  • P3,500 Filing Fee (non-refundable)
  • Processing Fee
  • Mortgage Registration Expenses
  • Documentary Stamp Tax
  • Mortgage Redemption Insurance (MRI) Premium
  • Fire/Earthquake Insurance Premium

6.  Upon Loan Approval and securing a Letter of Guarantee (LOG) from the bank, you may, at this point, pay for the Other Charges for the Transfer of Title processing and utilities connection.

7.  If you have paid the 20% Downpayment in full, Congrats! You are now ready to move in to your new home.


Is there a possibility that my Housing Loan will be denied?

Your housing loan application can get rejected due to several factors such as:

  • Lenders/banks not being convinced you have the ability to pay off the amount you borrow. This is usually based on your income, number of dependents, stability and continuity of occupation, and credit standing.
  • Not meeting the qualification criteria such as the age requirement of being between 21 to 65 year old.
  • Failing to provide the necessary documentation.
  • Issues regarding the amount you applied for.

Banks typically provide details to borrowers as to why the Home Loan got rejected. Depending on the reason why, you could consider the following options:

  • Applying for a different or more affordable property.
  • Considering another Bank or lender who is little less stringent in terms of approving applications.
  • or getting a PAG-Ibig loan instead. Alternatively, you can consider borrowing with a co-signer or a co-borrower.
What are the Other Charges/Service Fees for?

Besides the actual purchase price, the following are the fees and taxes that you as a buyer must also sort out.  As a Summary:


1. Property Tax:  (This value is determined based on actual assessment)
2. Fire Safety:  8,000.00
3. Occupancy Permit:  15,000.00

1. Doc Stamps:  1.75% of the Total Selling Price

1. Transfer Tax: 1.25% of the Total Selling Price

D. MERALCO: 12,000.00

E. Prime Water / Maynilad:  5,000.00

F. Processing Fee:  (Notarial/Legal/Transportation costs):  10,000.00.

Documentary Stamps Tax (for BIR)
The Documentary Stamps Tax (DST) is a type of tax levied on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, right, or property.

Transfer Tax (for RD/LRA)
This is a tax imposed on any mode of transferring the ownership of a real property, either through sale, donation, or barter.

Registration Fee
This fee is paid for the registration of a Deed of Absolute Sale, conveyance, transfer, exchange, partition, or donation of a real property. It is paid to the local Registry of Deeds or Land Registration Authority where the property is located.

Notarial Fees
The Deed of Absolute Sale should be also notarized, which requires a fee of about 0.1 to 0.15 percent of the property’s selling price.

Move-In Fees

These are the necessary fees to be paid before dwelling in a unit which might include: Water Connection, Electrical Connection and Association Dues.

  • Water Connection
  • Electrical Connection
  • Association Dues – if applicable

Loan Fees
Lastly, if you apply for a housing loan, there are extra costs tied to it, such as an appraisal fee, handling fee, mortgage redemption insurance, and fire insurance. This depends on the bank or lender, so make sure to shop around to find out who offers the best rates.

When will the property be physically turned over to me?

The property will be physically turned over upon:

  1. Full payment of the 20% Downpayment, Letter of Gurantee (LOG) from the Bank/PAGIBIG and payment of Other Charges;
  2. or completion of the development,

whichever comes later.

Who pays for the Bank Charges?

The Buyer pays for the Bank Charges that cover certain miscellaneous fees like handling fee, appraisal fee, documentary stamp tax, notarial fee, and registration fee.

Chinabank, for example, lists their Insurances and Fees required when applying for a Home Loan:

  • P3,500 Filing Fee (non-refundable)
  • Processing Fee
  • Mortgage Registration Expenses
  • Documentary Stamp Tax
  • Mortgage Redemption Insurance (MRI) Premium
  • Fire/Earthquake Insurance Premium


Housing Loan - Bank

Ok, I’m ready to apply for a Home Loan, but which Bank has the lowest interest rate?

The following are the factors that affect your housing loan eligibility and the terms you get from financing institutions:

  • Age
  • Income bracket
  • Nature of work or profession
  • Property type (e.g. vacant lot, house and lot, condo, townhouse)
  • Location of the property
  • Current market value of the property

Banks and other lending institutions often advertise their lowest interest rates only, to easily attract prospective clients of course. Usually, Banks have their own factor rates and process of calculating for the monthly amortization.

There are a few things to remember when considering a home loan. Different banks have different terms but most offer a fixed interest rate on the first year and the following years are subject to re-pricing.

This brings us to the question, is the lending institution who advertises the lowest interest rates always the best one for you? Apparently not. The best lender actually depends on your (buyer’s) needs. Sometimes loan applications won’t even get approved by banks. Sometimes you will be offered a lower home loan amount instead, depending on your circumstances, the factors mentioned above.

In some cases, you need a longer term to pay off your loans. The longest term banks offer is only 25 years while HDMF (Pag-Ibig) offers up to 30 years; again, conditions apply.

With longer terms, the monthly amortization will also be lower, easier on the budget. The only trade-off is that it will take you longer before you are released of your monthly obligation, and you will possibly be charged a higher interest rate with this.

Our Advise

Our general advice is to first examine your financial capacity yourself. Will you be able to pay off your loan in 5 years? If you can, then a home loan program with a fixed interest rate for 5 years should be a good one for you.

You might not get offered the lowest interest rate but you will be protected in case a sudden increase in interest rates will occur due to future economic conditions. This is actually a sound real estate investing move.

If however, you are not confident that you can pay off your loan that fast; or if you just need to have a lower monthly amortization amount, then by all means go for the longest term you can avail. Even if it means paying a higher interest rate.

And if you are someone who has enough resources or monthly income to pay off a loan in as fast as less than 5 years, then you should probably look for the loan offers with the lowest interest rate.

What are the requirements for Bank Loan Application?

The following links will direct you to their official website with specifics to the requirements for Bank Loan application.

1. Chinabank

2.  Security Bank

3. AUB

4. BDO

What banks are you accredited with for the Bank Loan Application?
  1. Chinabank
  2. Security Bank
  3. AUB
  4. BDO


Who pays for the Bank Charges?

The Buyer pays for the Bank Charges that cover certain miscellaneous fees like handling fee, appraisal fee, documentary stamp tax, notarial fee, and registration fee.

Chinabank, for example, lists their Insurances and Fees required when applying for a Home Loan:

  • P3,500 Filing Fee (non-refundable)
  • Processing Fee
  • Mortgage Registration Expenses
  • Documentary Stamp Tax
  • Mortgage Redemption Insurance (MRI) Premium
  • Fire/Earthquake Insurance Premium


Housing Loan - PAG-IBIG

What are the Application Requirements?


Actual Document from PAG-IBIG:

What are the uses of Pagibig Housing Loan?

Not everyone knows it, but Pag-IBIG members may get a housing loan for any of these instances:

  • To buy a brand-new house and lot or other newly constructed property.
  • To purchase an existing residential house and lot, townhouse, or condominium unit.
  • To buy a fully developed residential lot or adjoining lots not exceeding 1,000 square meters.
  • To acquire a property currently mortgaged with PagIBIG.
  • To buy a foreclosed property now acquired by PagIBIG.
  • To spend on home improvements or to construct a residential unit on a lot owned by the member.
  • To transfer an existing housing loan from another bank or financial institution (i.e., to refinance an existing housing loan).
Who are eligible to apply for a Pag-IBIG housing loan?

Filipinos who satisfy the following requirements may avail of a Pag-IBIG housing loan:

  • Must have remitted 24 monthly Pag IBIG contributions. New members or those who have not paid the 24 monthly contributions may pay total contributions in lump sum.
  • Has no outstanding Pag-IBIG housing loan.
  • Has no outstanding multi-purpose loan in arrears.