An extra hand for your construction, renovation needs

Despite the ever increasing preference for high rise condominiums, there remains a significant market for the traditional house and lot.

For those who seek bigger spaces, wider lawns and the freedom to expand and renovate their homes according to their own tastes, a house and lot would seem to be the more practical option for them.

Constructing or renovating a home, however, does not exactly come cheap. You may have already finalized all the plans to construct, renovate or expand your dream home down to the most minute of details, but you suddenly find yourself a little short on cash to fund the construction—what do you do?

Nowadays, financial institutions like Metrobank offer home loans that you can use not only for the purchase a new lot, home or condominium unit, but also for your construction and renovation needs.

Similar processes, requirements

Metrobank knows that building your own home gives you more options to do what you want—similar to getting a home loan from Metrobank.

The local banking giant can customize your loan to fit your requirements. Just like a home loan meant to purchase a new condominium unit, a lot or a house and lot, those taking out a loan for construction and renovation purposes can also enjoy the option to pay anywhere between one year and 25 years, determine the interest fixing period, and choose the loan amount depending on the appraised value of their collateral.

The eligibility requirements and documents are the same as well. According to the website of Metrobank, those that can avail of the loan 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; 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 for fixed income earners, among others.

Requirements also include proof of identification (valid government-issued IDs), source of repayment (certificate of employment, income tax return, or three months’ worth of payslips), and collateral.

As of this writing, Metrobank offers among the most competitive fixed interest rates, ranging from 7 percent (one-year fixing) to 8.5 percent (five-year fixing).

Loan releases

The difference, however, is that the loan proceeds for construction are released in tranches. The releases will be based on the percentage of completion after an appraisal by Metrobank to ensure that the building process gets done on schedule.

After approval, the funds are released in tranches based on the stages of completion. The first release will be 60 percent of appraised lot value or 50 percent of approved loan amount, whichever is lower.

The second tranche of the loan will be released when building completion is at 30 percent; third release upon 60 percent completion; fourth release upon 90 percent completion; and fifth release upon full completion of the house.

Indeed, Metrobank can give you an extra hand so you can complete your dream home, fix that leaking roof, create a new wing for your expanding family, or simply refurbish, modernize and upgrade your homes. With a Metrobank loan, you can have the home you want without having to worry about it now.