Are you planning to buy that dream home? Make sure you compare interest rates before moving forward.
If you’re on the lookout for flexible payment terms, you may want to explore the rates of the BDO Home Loan.
What can BDO Home Loans do for you?
Here are the things you need to know about the various home loan options of BDO. You can choose from any of the following:
- Purchase of House and Lot / Townhouse Unit
- Purchase of Condominium Unit
- Purchase of Vacant Lot
- Construction of House
- House Renovation / Home Improvement
- Reimbursement of Acquisition
- Refinancing / Loan Take-out
How much can you borrow with your BDO home loan?
|House & Lot/ Townhouse/ Construction||Condo Unit||Vacant Lot|
|Minimum loanable amount||P500,000||P500,000||P300,000|
|Maximum loan vs. the appraised value of property||Up to 80%||Up to 70%||Up to 70%|
|Maximum loan term||20 years||15 years||10 years|
BDO Home Loan’s minimum loanable amount is P300,000 if you’re planning to purchase a vacant lot.
For property acquisitions, such as house and lot, townhouse, condo unit, or for construction purposes, you can borrow for a minimum of P500,000.
You can always refer to the BDO Home Loan calculator to get an idea of the monthly amortization and interest rates.
You can choose a longer fixing period to help you manage your monthly payments. Keep in mind that the interest rates below are as of the date indicated only.
|Fixed Period||Interest Rate (per annum)|
Once you’re in the Home Loan Calculator page, fill in the property selling price and your desired interest rate, and it will automatically generate sample computations.
These are just for illustration purposes as you also need to consider miscellaneous fees (appraisal fees, documentary stamp tax, etc.) and cash-out payments, which include a Built-in Insurance fee.
Image screenshot from BDO as of 27 February 2020
Let’s say you’re planning to buy a condo for P7,000,000 with a 5-year fixing period and a loan term of 15 years. The monthly amortization will be approximately P53,517.
What’s interesting about the BDO Home Loan Calculator is that it also shows the required monthly income of the borrower. This way, you can assess if the monthly payments will be within your budget.
Do note that these are indicative figures. It’s best to visit your nearest BDO branch for an actual computation and get the prevailing rates from the loan officer.
Who can apply for a BDO Home Loan?
As a borrower, you must be at least 21 years old but not exceeding 70 years old at the end of the home loan term.
Whether you’re a Filipino citizen or a foreign national, you can apply for a loan, provided that you submit the required documents and duly accomplished forms.
Foreign nationals working or residing in the Philippines can take a look at the qualified visa types here. Home financing for foreign nationals is limited to properties that are classified as condominiums.
If you have a stable job and source of income, and if you’re locally employed, self-employed, or working abroad, take note of the following conditions:
- For locally employed – you must be working for at least two years with the current company
- For self-employed – your business should be operating and at least 2 consecutive profitable years
- For OFWs or employed abroad – 2-3 years of consecutive employment
The minimum gross income is P50,000 per month or its equivalent in US dollars.
How do you apply for a BDO Home Loan?
If you think you’re eligible to apply for a BDO Home Loan, you can fill out a form and visit your nearest BDO branch or submit your information via online application.
Upon submission of complete documents and requirements, it will take 5 working days to know if your application is approved or not.
Here are the documents you need to prepare for submission.
- Basic documents include the completely filled-out application form, together with a photocopy of one (1) valid ID to verify your information.
For those who are married, submit the marriage contract and your home loan application form together with the following income documents.
|Locally Employed||Self-Employed||OFWs or Employed Abroad|
||You can submit any of the following:
PropertyFinder on BDO Home Loan
If you haven’t found your dream home, you can always check the List of Real Estate Properties for Sale from BDO’s foreclosed properties.
You can check selling prices of properties, including the vicinity and lot areas.
To discuss further, you may visit your nearest BDO branch or call BDO Asset Management Group at (02) 8702-7088 / (02) 8702-6000.
Is the BDO Home Loan for you?
BDO offers competitive interest rates compared to other banks such as BPI and Metrobank. It has a minimum loanable amount of P300,000 for vacant lot purchases and P500,000 for townhouse, condo unit, and house and lot purchases.
However, BPI’s minimum loanable amount of P400,000 and maximum of up to 70% of the appraised value has an edge over BDO’s home loan offering.
Furthermore, BDO’s 5-year fixing period interest rate is 8.00% while BPI offers 6.88% for its 4- and 5-year fixing period for home acquisition, renovation, and construction. This makes BPI’s terms and rates more enticing to borrowers.
However, if you’re a BDO depositor or credit card holder for many years, it would be more convenient for you to apply for a BDO Home Loan.
If your application is approved, you can enroll your existing BDO Peso Savings or Checking Account and use the Automatic Debit Arrangement.
But you also need to consider other loan-related fees once you’re approved, including inspection fees and the Construction All-Risk Insurance for home construction and renovation.
We’ve already reviewed BPI Home Loans, HSBC Home Loans, RCBC Home Loans, and Security Bank Home Loans which you can also refer to if you’re planning to take out a loan for home acquisition, construction, refinancing, or home equity.
So, what do you think of BDO’s home loan rates? Do you see yourself paying for your dream home with their terms? Let us know in the comments below.