Financing Options: Bank financing

Bank financing means the buyer loans the balance of the real estate property from a bank after paying the required down payment. The bank pays the developer/owner and the buyer pays the bank. The title of the real estate property will be under the bank’s name as collateral (just in case of default payment, the bank can go after the property). In addition, there will be a mortgage agreement between the buyer and the bank.

For example: A house and lot at La Vista Monte – a middle class to high-end subdivision in Matina Diversion Road, Davao City.

Total Contract Price: Php3,891,000
Lot area: 204 sq.m
Floor area: 83.75 sq.m

Thru Bank financing
1)      20% down payment:               778,200
Less: reservation fee:                   50,000
Down payment balance:               728,200
Payable in 3 months:                    121,366.67
 
2)      80% estimated loanable:                    3,112,800
Estimated mo. Amort. For 5 years:           66,137.79
Estimated mo. Amort. For 10 years:         42,878.82
Estimated mo. Amort. For 15 years:         36,859.63
*Loanable amount is subject to loan approval
*Interest rates at the time of loan release will be applied

Note: This is a sample computation only. The prices and computations are subject to change without prior notice. Contact us for updates.

Advantage:
-          Paying won’t feel such a big burden. You can just include it in your monthly budget.
Disadvantage:
-          The longer the loan, the more you end up paying (because of the interest).

Need help in processing your bank loan? We will gladly assist you at no cost J

Related Articles:
Paying in Spot Cash
Paying in Deferred Cash
Financing Options: Pag-ibig financing
Financing Options: In-house financing

Ready to purchase a real estate property in Davao City? Check out this real estate website:
Davao City Real Estate Properties

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