Purchase of Property: This is the most common option. It means you are buying a property from a seller or developer.
Construction: Means you are building your home. In this case, the home loan will be paid out over several instalments as the property is built.
Renovation: Means you own the property already and are wanting to renovate it to upgrade its appearance and/or increase its size. The home loan will be used for the renovation cost.
Refinancing: Is where you have a home loan already but would like to move the home loan to another bank to take advantage of a lower interest rate. The home loan will be moved from Bank A to Bank B.
Home Equity: Is where you own the property already and would like to use the home as collateral to take out a loan for various purposes such as: go on a holiday, buy a car, consolidate debt, pay for education expenses, etc.
The loan term is how long you would like to repay the housing loan. The longer the term (loan period) the smaller the monthly repayments.
A loan term for a condo is typically 15 years. And a typical term for a house and lot is 20 years. Use these numbers as a guide as these are the maximum loan terms used by most banks.
Loanable amount (%)
The loanable amount % is the percentage of the property value that you will lend from a bank in the form of a home loan. Generally you will not need to adjust the loanable percentage from 80% as this is the most common loanable amount %.
However, if you plan to pay more of a downpayment you can decrease the loanable amount %. Alternatively, if your property purchase is from a developer, in some cases you can increase the loanable amount % to 90%.
Loanable amount (Php)
This is the amount you will lend from a bank for the property. You do not need to adjust this field.