Planning to get a housing loan from Banco de Oro (BDO)? Here’s what you need to know about BDO’s home loan application requirements, interest rates, and some tips to help you decide if you’re fit to get a home loan right now.
Who are eligible to get a BDO Housing Loan?
All Filipino citizens and foreign nationals in the Philippines are eligible to get a property loan. In addition, they must:
- Be at least 21 years old, but not exceeding 70 years old by the end of the loan term;
- Have a minimum gross income of P50,000 per month or its equivalent in US Dollars (may be “combined gross family income” — if married, you and your spouse’s salary will both be assessed for loan application; if single, you may apply with a co-borrower who will have a joint liability in repaying the loan)
- With stable source of income from employment or business, specifically:
- If locally employed, must have worked for at least two (2) years with current company;
- If self-employed, with at least two (2) consecutive years of profitable operations
- If employed abroad, with 2-3 years of consecutive employment and the beneficiary must be assigned as Loan Administrator if the applicant is not in the Philippines at the time of application.
Foreign nationals working, living, or residing in the Philippines may apply for a BDO housing loan, as long as they hold any of the following visas:
- Quota or Preference Immigrant Visa Holders (Sec 13 of Phil. Immigration Act)
- Non-Quota Immigrant Visa Holders such as:
- Alien Spouse of a Filipino citizen (Section 13A Visa)
- Child born outside of the Philippines to a Mother holding Section 13A Visa
- Child born in the Philippines to a Mother granted Section13A Visa
- Natural-born Filipinos married to an Alien (Section 13D)
- Returning Resident (Section 13E)
- Natural-born Filipinos naturalized by a foreign country (Section 13G)
- Embassy Officials who are residing in the Philippines for more than 1 year
- Holders of Special Resident Retiree Visa (SRRV)
- Aliens granted with permanent residence status and working visas issued by the Subic Bay Metropolitan Authority (Republic Act No. 7227)
What housing loan options are offered by BDO?
Borrowers may apply for a BDO housing loan for use in any of the following purpose:
- Purchase of House and Lot or Townhouse Unit
- Purchase of Condominium Unit
- Purchase of Vacant Lot
- Construction of House
- House Renovation or Home Improvement
- Reimbursement of Acquisition
- Refinancing / Loan Take-out
How much can I borrow?
If you are purchasing or constructing a house and lot / townhouse or buying a condo unit, the minimum housing loan amount is P500,000. If you’re purchasing a vacant lot, the minimum loan amount is P300,000.
As for the maximum loan amount, take note that, normally, you won’t be approved to receive the full purchase price of the property as loan amount. The maximum loan you can borrow is a percentage of the appraised value of the property. Specifically, the approved loan amount is as follows:
- For House & Lot / Townhouse / Construction = maximum 80% of appraised value of property
- For Condo units = maximum 70% of appraised value of property
- For Vacant Lot = maximum 70% of appraised value of property
How long is the loan payment period?
The loan duration (number of years you will pay the loan) will be your choice, but the maximum loan term will depend on the type of property you are considering, specifically:
- For House & Lot / Townhouse / Construction = maximum 20 years loan payment period
- For Condo units = maximum 15 years loan payment period
- For Vacant Lot = maximum 10 years loan payment period
What are the Application Requirements?
All BDO home loan applicants must submit the following requirements.
1. Basic Documents
- Completely filled-out BDO housing loan application form
- Photocopy of one (1) valid ID matching application details (acceptable IDs: Passport, Driver’s License, SSS, PRC, OWWA ID, OFW ID, Seaman’s Book)
- Marriage contract, if applicable
2. Income Documents
A. If locally employed:
- Latest Income Tax Return (ITR) or BIR Form 2316
- Latest three (3) months payslip
- Certificate of Employment with Income (COEI)
B. If self-employed:
- Photocopy of Audited Financial Statements for the last two (2) years with latest Income Tax Return (ITR)
- Bank Statements or Photocopy of Passbook for the last six (6) months
- Certificate of Business Registration from DTI or SEC, Articles of Partnership or Articles of Incorporation (whichever is applicable)
- Business Background or Company Profile
C. If employed abroad, any of the following:
- Proof of Remittance for the last 3 months
- Latest Crew Contract, if sea based
- Consularized Certificate of Employment with Income (COEI) or latest three (3) months payslips
3. Collateral Documents
- Photocopy of Title
- Lot Plan with Vicinity Map
- Photocopy of Tax Declaration
If you are applying for a Construction Loan, also submit the following documents which must be certified by an Architect or Civil Engineer:
- Building / Floor Plan of proposed improvement
- Bill of materials
- Building Specification of proposed finishes
If you are applying for a Refinancing / Loan Take Out, submit:
- Statement of Account from current bank
- Official receipts for the last three (3) months
What to consider before getting a home loan?
Here are three (3) useful tips from BDO to help you decide whether you should get a housing loan now.
1. Review your income and expenses. Compute your “net income” per month. This is the net amount you’re receiving after you have deducted all your expenses from your salary (and other incomes you receive) every month. Checking your net income is important because a home loan will become an additional burden to you, in the form of the monthly amortization or monthly payment for the loan. This becomes an additional expense that could decrease or lower your “net income” per month. If your reduced net income is something that you’re not willing to bear at the moment, you might not be ready yet to get a housing loan.
2. Look for a property that matches your needs and income level. Ideally, we all would want to live in a house or condo that is spacious, with lots of amenities and good furniture, located in a very prestigious or enticing neighborhood. But this, of course, comes with a price. Such properties are almost always very expensive — translating to a higher loan amount you will borrow, also to a high amount of monthly amortization. So make sure you match the property you’re eyeing with the “net income” that you currently have (computed from Tip #1). Otherwise, you might end up with an awesome house that you won’t be able to fully pay in your lifetime.
3. Determine how much monthly amortization you can afford. Based on your assessment of your current income level and its potential for growth in, say, the next 5 or 10 years, decide on a level of housing loan amortization that you are willing and able to pay every month. Take note that if you default on your loan, that is, you were unable to pay several months of loan amortizations, the bank will foreclose your property and you will be asked to vacate your home.
What is BDO’s current Housing Loan Interest Rates?
BDO’s published housing loan rate is as follows. The interest rate is normally fixed from the date the loan is released, and applicants may choose to have the interest rate fixed for 1, 2, 3, 4, or 5 years.
After the initial fixing period, the loan will repriced every year. This means if the loan was released on September 1, 2019, the interest rate will be fixed up to September 1, 2020. However, by September 2, 2020, the rate will be repriced. The new repriced interest rate is usually higher than the original fixed interest rate charged.
BDO Housing Loan Interest Rates (2019)
|Rank||BANK / INSTITUTION||UITF||JAN - SEP 2018 RETURN %|
|1||China Banking Corporation||China Bank Cash Fund (Formerly CBC INSTITUTIONAL MMF)||2.08%|
|2||Philippine National Bank||PNB INSTITUTIONAL MONEY MARKET FUND||1.92%|
|3||Metropolitan Bank & Trust Co.||Metro Short Term Fund||1.90%|
|4||RCBC Savings||RCBC Savings Bank Peso Money Market UITF||1.87%|
|5||Development Bank of the Philippines||UNLAD KAWANI MONEY MARKET FUND||1.85%|
|6||BDO Unibank, Inc.||BDO INSTITUTIONAL CASH RESERVE FUND||1.84%|
|7||BDO Unibank, Inc.||BDO SHORT TERM FUND||1.82%|
|8||Security Bank Corporation||SB PESO MONEY MARKET FUND||1.76%|
|9||BPI Asset Management and Trust Corporation||BPI Short Term Fund||1.75%|
|10||Development Bank of the Philippines||CLASS I - UNLAD PANIMULA MM FUND||1.74%|
|11||United Coconut Planters Bank||UCPB Cash Management Fund (Formerly United Cash Management Fund)||1.72%|
|12||Robinsons Bank||RBank Peso Money Market Fund||1.71%|
|13||Rizal Commercial Banking Corporation||RIZAL PESO CASH MANAGEMENT FUND||1.70%|
|14||Development Bank of the Philippines||CLASS II - UNLAD PANIMULA MM FUND||1.69%|
|15||Metropolitan Bank & Trust Co.||Metro Money Market Fund||1.68%|
|16||LandBank of the Philippines||LANDBANK Money Market Fund||1.67%|
|17||Philippine National Bank||PNB DREAM BUILDER MONEY MARKET FUND||1.67%|
|18||BPI Asset Management and Trust Corporation||BPI Money Market Fund||1.65%|
|19||Philippine National Bank||PNB GLOBAL FILIPINO PESO MONEY MARKET FUND||1.65%|
|20||Development Bank of the Philippines||CLASS III - UNLAD PANIMULA MM FUND||1.64%|
|21||EastWest Banking Corporation||EastWest Peso Money Market Fund||1.61%|
|22||BDO Unibank, Inc.||BDO PERA SHORT TERM FUND||1.60%|
|23||China Banking Corporation||CBC MONEY MARKET FUND||1.59%|
|24||Rizal Commercial Banking Corporation||RIZAL PESO MONEY MARKET||1.57%|
|25||AB Capital||AB CAPITAL SHORT-TERM FUND||1.57%|
|26||Philippine Savings Bank||PSBANK MONEY MARKET FUND||1.56%|
|27||Bank of Commerce||DIVERSITY MONEY MARKET FUND||1.51%|
|28||Philippine National Bank||PNB PRIME PESO MONEY MARKET FUND||1.51%|
|29||CTBC Bank (Philippines) Corp.||CTBC Money Market Fund||1.49%|
|30||ATRAM Trust Corporation||ATRAM Peso Money Market Fund||1.43%|
|31||BDO Unibank, Inc.||BDO PESO MONEY MARKET FUND||1.40%|
|32||LandBank of the Philippines||LANDBANK Money Market Plus Fund||1.37%|
|33||China Banking Corporation||CBC SHORT-TERM FUND||1.23%|
|34||EastWest Banking Corporation||East West Peso Short Term Fund||0.97%|
|35||Philippine Bank of Communications||SIGNATURE TRUST FUND||0.68%|
|36||Union Bank||UnionBank Peso Short Term Fixed Income Portfolio||0.65%|
|37||Asia United Bank||Peso Money Market Fund||0.56%|
|38||Philippine National Bank||PNB FIXED INCOME FUND||No Data|
|39||Sterling Bank of Asia||Sterling Money Market Fund||No Data|
|40||Maybank Philippines Inc.||Maybank Tiger Peso Money Market Feeder Fund||No Data|
Disclaimer: The quoted rates above are indicative and may be changed by BDO anytime.