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Can foreigner get housing loan from Philippines Banks?

The Philippines has long been an attraction for foreigners who wish to take up either investing on a business or wishing to a permanent residency. Aside from the beautiful beaches and scenery, the country is now being seen as a competitive one when it comes to growing economy in Asia.

While the constitution formally states that foreigners cannot own a land inside the country, the constitution still has its exception. They can now apply for loans in the Philippines provided if they are able to show proof of staying in the country legally. It used be very difficult to get a housing loan as a foreigner in the Philippines, but as time goes by, this is gradually getting easier as more banks are starting to offer foreigner loans.

A foreigner might consider some things if they want to make their move to the Philippines. They need to understand that there are laws and guidelines to follow and the types of loans available. Some banks in the Philippines like PNB and BDO are allowing foreigners to get a housing loan, they just need to submit the documents needed by the bank, while different banks will offer different services and products in accordance to what the client’s need. To know more the exact information about this, and to understand the foreigner’s eligibility to loan, it’s a pretty good idea to meet with a few banks to discuss the concerns and situation.

Meanwhile, it’s still much very possible to loan if the foreigner can pay for a higher down payment and establish credibility to repay the loan. Some of the foreigners might consider having in-house loan from developer for the turnover balance, but the in-house loan is usually very high in interest ranging form 9-12% per year.

Given the time it takes to find the right and suitable bank for the foreigner to suit their needs and the long due process of paperworks needed to qualify, theses experienced real estate brokers made it easier to solve around these kinds of areas.

The foreigner might need to provide some supporting documents, including:

- their ACR (Alien Certificate of Registration)

- their visa

- completed application form from the bank

As you can see, these are similar to the Filipino loaners’ requirements and these documents will depend on the bank you inquired. In case you have your real-estate broker with you, you can have a discussion with them for the better understanding of getting your housing loan.

Remember, just because you have fallen in love with the view from your house loan, it’s not always wise to purchase it straightly. You should learn to evaluate every corner and details of the property. Don’t be an impulsive one when it comes in loaning or you will regret it later on.

Meanwhile, foreigners with a Filipino spouse may submit:

- Photocopy of either the Alien Certificate Registration (ACR)

- Alien Employment Permit (AEP) Or Visa ID

Foreigners must also take note that under Article XII of Philippine Constitution, they cannot acquire a private land in the country. As such, the loan and real estate property title will be under the Filipino spouse’s name. However, both must sign off the loan. As for the modern technology now, it’s most likely to register a loan online than to have physical appearance at the bank. But if the foreigner wanted to register online, they must be aware of the website they are engaging in for there are some fake websites on the internet. It’s still best to apply housing loan by meeting with the banks and enclose some discussions with regards to the suited housing loan for them.

Now you have an idea on the foreigner housing loan in Philippines, so it is time to choose your dream property at Homdax.

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