Are home loans merely for the chosen few? Top executives enjoying the benefit of higher incomes or the well-heeled crowd basking in luxury afforded by a huge inheritance?
No, not really.
Nowadays, financial institutions like Metrobank have made it relatively easier for many hardworking Filipinos to take out a loan—whether a home or automotive loan.
Although Metrobank continues to strictly adhere to certain rules and guidelines, this local banking giant has aptly responded to the growing opportunities presented by a rising demand for housing loans in the country. Hence, one would regularly see Metrobank rolling out promos and offering flexible payment terms that will allow more property seekers to realize their dream of owning a home.
Eligibility
So, how do you know you’re eligible to avail of a home loan?
Data from the website of Metrobank showed that for one to qualify, he or she must be:
At least 21 years old at the time of application and not older than 65 years upon loan maturity;
A Filipino citizen or foreigner with permanent resident visa for the Philippines;
If based in the Philippines, one must be self-employed or a fixed income earner;
Must be employed for at least two years with current employer and earning at least P30,000 for self-employed individuals, or have the same Gross Monthly Family Income (GMFI) for fixed income earners
If working abroad, applicant can be a land-based or sea based overseas Filipino worker in active employment (with an officer position), or have renewed or signed a contract at the time of loan application;
For land-based OFWs employed less than two years, they should be employed locally in the last five years prior to becoming an OFW, or as an OFW with different employers, or a combination of local and overseas employment;
For sea-based OFWs, they should have completed a combined contract duration of 24 months with current agency, or 48 months inclusive of previous agencies and earning at least $1,000 for self-employed individuals and fixed income earners.
Gearing for a home loan
Now, what if you meet all these requirements, but you think you’re not ready to plunge in and make that huge decision? After all, there are a slew of other fees and expenses that go with taking out a home loan.
In the meantime, it’s best that you prepare yourself and build your credit profile as well. Here are some ways you can do so.
1 Ensure steady income
The primary consideration among banks when granting a loan is one’s capacity for repayment as this signals stability. The clearest proof of that is having a steady stream of income for a certain period, whether you’re employed or you have your own business, and meet the income requirement of the bank. In case of Metrobank, the requirement is a monthly income of at least P30,000.
2 Be prompt in bill payments
Whether it’s for your credit card, phone or electricity bill, it’s best that you pay all your bills on time. More than anything, it’s a clear indication that you’re likely a low risk borrower, which is a huge plus for lenders. It shows that you are responsible and will not likely default on your loans.
3 Pay off all existing debts
Let’s say you already have accumulated some credit card debt over time. It would be ideal that you try to settle these at one point, because banks would usually look at your credit history.
You can at least start paying the minimum due and do so diligently and promptly every month. Hopefully, by the time you avail of a home loan, you’ll have a credit profile worthy of the banks’ consideration.
4 Scout for best possible option
Again, you need to do your research. Make a shortlist of the banks you think can give you the best possible option. Metrobank, for instance, offers the ease and convenience of availing of a home loan, as well as competitive interest rates that can give you the best value out of your hard earned savings. Check out Metrobank’s offers at www.metrobank.com.ph.