Bridging the ‘knowledge gap’ in homebuying
It is every Filipino’s dream to have his or her own home. Unfortunately, for almost 6 million hard working Filipinos, this is a dream that is not easy to achieve as salaries have not grown at the same pace as property prices.
The goal of government is to address this 6 million housing backlog and it is the objective of 8990 Holdings Inc. to help close this gap by providing affordable housing to middle and lower income Filipinos.
To make housing accessible, 8990 Holdings uses several financing schemes that make home ownership within reach. These include taking out a PagIbig loan; availing of the company’s in-house financing program or applying for bank financing.
But while affordability is critical, 8990 believes that the long term sustainability of housing finance really lies in the buyer’s willingness in making monthly amortization payments. This is where financial literacy becomes crucial.
Bridging knowledge gap
8990 Holdings Inc requires each prospective homebuyer to undergo a half-day seminar before he is even allowed to even reserve a unit.
The Financial Literacy Seminar is an innovative solution that 8990 developed to go beyond just recognition of a buyer’s CAPACITY to pay. It strengthens his WILLINGNESS pay and seeks to bridge the knowledge gap in meeting his financial obligations.
In the end, the goal of this seminar is to make the buyers value his investment and see it as a means of building wealth and not merely as a monthly expense he needs to meet.
8990 Holdings Inc believes that providing affordable housing enables all Filipinos, in whatever stage in life, to own property. Using a simple step-by-step process, the dream of owning a home can be a reality.
Step 1: Prequalification
In this step, 8990 determines if the Buyer is able to meet the income requirements
Step 2: Financial Literacy Seminar
The Buyer is required to attend a half day seminar that builds awareness of his financial obligations as a homebuyer. It also teaches the buyer habits that would help lead to financial discipline.
Step 3: Documentation Evaluation, Approval
Buyer submits the necessary documents for further evaluation of his financial capabilities as well as loan application documents, if necessary.
Step 4: Reservation Payment
Buyer pays the required reservation fee. This may vary depending on the brand, the unit cut, and project location.
Step 5: Equity Payment
Once the buyer has been evaluated and all documents are deemed complete, he is required to pay the necessary equity or percent of the contract price.
Step 6: Financing via Pag-Ibig, banks, or in-house
8990 provides the buyer information on his financing options: HDMF (PagIbig), via Bank Loan or 8990’s In-house Financing Scheme. Once the buyer chooses, 8990 helps facilitate the take-out of the loan.
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