financial

Easier Options In Buying A House – Pagibig or Bank Financing House Loan

Having your very own dream house is the greatest dream of every Filipino family.

If you are looking to buy a house, these are the two main questions you have to think about.

1. Is the costs involved in buying a house too much that you might start thinking that your dream house is just a dream? – The truth of it all is that most of those who plan to purchase a house does not have a sustainable cash in hand that they can readily compensate for their dream house.
2. Are there easier ways of buying a house? – There are some that might have the amount to pay for it, but would prefer to apply for a loan to clear it since paying it in full might be too much of a burden they can manage.

These questions are undoubtedly with enlightening answer. We present not a magic word, but an easier solution that might broaden your choices.

ENUMERATE YOUR OPTIONS

There are so many lending institutions and bank financing programs that offer their very own mortgage interest rates or home loan rates. You may have been thinking which bank has the most inexpensive mortgage rates since you are most likely inclined to be mingled up with every decision you make.

Wouldn’t it be great if you can easily find which option is best fitted for you? It is fine since we can help you out in deciphering the best option you might desire to think around.

a) PAG IBIG LOANS

Why is it that PAG IBIG is the first thing that will come up in your mind. Is it basically because of the small amount deducted out of your salary every time you see your paycheck? I guess that will be the most obvious reason.

Home Development Mutual Fund or commonly known as PAG IBIG housing loan fund is providing a loan to finance the your much desired dream house. This is just one of the assistance if not the most popular service provided by the institution.

b) Bank Financing

Are you intimidated inquiring from banks since they might have too many or might have a strict set of requirements to buy a house? Are you the type that is so afraid of the rejection once they start evaluating your application? Are you the one that appears to be overwhelmed with the higher interest rate?

You might want to consider checking the details of housing loan provided by banks since you might see a more beneficial bargain.

There are of course different banks who also offers this service to prospective buyers. Home loans through bank financing might be too much to absorb at first glance, but also might prove to provide a wider range of options for your much awaited dream house.

CHECK THEIR LIMITS

Many would think that they will have to depend on their housing loan to be able to purchase their dream house, but on the contrary your housing loan is dependent on you. Everything about your housing loan is subject to other qualifiers that the one providing the loan should consider.

The actual need of the borrower is being weighed by the bank or institution to verify how much can a certain borrower can make use of. Before they approve your proposed loan, they have to verify from your application and from any financial records you have your capacity to pay. Repayment process may also differ for both of them; PAGIBIG can go up to a maximum of 30 years while for banks would range from five (5) up to 35 (thirty five) years.

INTERESTED IN INTEREST RATES

This may not be updated in the future, but I would only like to use this information I gather to be able to offer a better comparison for both lending institution and bank funding.

With PAG IBIG their lowest interest rate is 4.5%, which of course subject for re-pricing. You might clear out PAG IBIG to be the most economical; however you are bound to a limited maximum amount that you can borrow. While some banks are offering as low as 5.50% for the first year and some banks offer a fixed rate of 7.5% for the first 5 years. Both cases are subject to re-pricing after the agreed time frame.

TIME CHECK

If you are too excited to get your dream house, then what are you waiting for? After deciding which option is best for you, start to make that move so you can make those necessary steps in buying your dream home. You might as well also note that PAG IBIG offers a processing time of 15 business days compared to how fast a bank can approve your loan, which will just take around 5-7 business days.

Everything depends on you as these factors will help you decide which option is better.

We wouldn’t want your dream house to stay as a dream forever. Have we enlighten you as to how you can finally achieve your dream house?

We would love to also hear from you by leaving a comments below that you might consider the best and easiest option so that you can get approved at the soonest possible time.

in Family, Financial Posted by Al-Khor Townhomes

Pros and Cons in Buying a Townhouse or Condominium

When looking for a dream house in Metro Manila, where there is a scarcity of available house and lot for sale, many are favouring to get either a condominium or townhouse. But what are the positive and negative sides of living in a townhouse or condominium?

Let’s define one from each other before we go ahead and go over the pros and cons of each of them.

A townhouse is simply a row of identical multi-level houses that shares their firewall with their neighboring unit but is built on its own land. While a condominium is a taller structure with several units sharing common walls and areas such as lobby and hallway, it is built on a common land owned by the developer.

Let’s now dissect some differences:

1. TURN YOURSELF INTO A LANDOWNER

If one of your unfinished missions in life is ownership of a land, then owning a townhouse is basically what you consider compared to a condominium, where this residential building is still owned by the company who developed it.

Funny, but it is true, a little piece of Earth comes for every purchase. It does sound like an advertisement from a fast food company offering toys for every specific meal, but that is what you get for buying a townhouse. You get to own the piece of land where your unit stands on. Isn’t that great?!

2. CHEAPER AND LARGER FLOOR AREA

Although the condominium might be a bit cheaper compared to buying a townhouse, you might as well check the bigger picture. It is true that with townhouse designs have compact layout that maximizes everything on its floor area. Considering that in mind, this basically meant you are getting your money’s worth since no area was left without a purpose. If you prefer a spacious home that includes auxiliary spaces then this is ideal for your family whereas a condominium floor space is not promising as what a townhouse can offer.

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3. GET YOUR OWN BRAND NEW CAR… GARAGE!

Ever consider counting parking tickets? Are you getting to be impatient with your neighbor blocking the driveway? Townhouses are providing a safe place for you to keep your prized ride. You get your very own parking spot from which this space is often under a guarded and secured gated area, eliminating the needs for paying parking fees. A condominium also has this amenity as they can offer it as an add-on since there is an additional premium for this feature.

4. ARE YOU MR.FIX IT?

The comparison between these two types of residence in the case of maintaining your unit is pretty much the same. Both have to pay some monthly dues to a Home Owners Association (HOA) for a townhouse and a Condominium Home Owners Association for maintaining the common areas of their own respective complex. You are entitled to care for the inner fixtures of your house while you’ll have to talk to the HOA regarding the external portions of your unit.

Why is this entry in the Pros and Cons Section? Well, of course you have to figure out how big these associations are. As a townhouse would have fewer units compared to a condominium, the association would be composed of a fewer number of home owners. That implies if you have plead your case to anyone then it is easier to talk to a smaller group as to making your case in a large society.

5. SHARE-A-WALL

Given that it’s just opposite your wall, a townhouse would have another neighboring unit on either side where both of you shares the same party wall. A condominium unit on the other hand has all of its sides just adjacent to another unit, besides of course that your ceiling is someone else’s floor and your floor is someone else’s ceiling.

If you wouldn’t mind sharing a wall or two, then a townhouse is perfect for you unless you want to share all sides of your unit along with your floor and ceiling, then you can go with a condo where you can also share a lobby, hallway, elevator and every common available area.

6. HOME AMBIENCE

Insomuch as comparing a townhouse and a condominium, there will be one evident difference between the two residential structures. There is this comfortable environment in a townhouse nurtures it sustains a living room design for small houses compared to the apartment or rental style atmosphere in a condominium.

On the debate between a townhouse and a condominium… have you ever asked yourself which one is better?

The obvious answer would depend on your preference as this contest is determined on the emotions of the buyer.

So have you reflected which one would be best for you? Will that be a real home or would it be a glorified high rise apartment? We’d love to hear which one is perfect for you.