Owning a home that we can can call our own is something we all work hard towards. Owing to the ever rising real estate prices, it can be quite a daunting task to monetarily fulfill the costs involved in procuring a home. For most of us, mere savings may not be sufficient to procure one. In such situations, we turn towards a viable instrument such as housing loan to fulfill the requirement.
Also known as mortgage or home loan, this loan instrument funds a larger share of the financials involved and lets you pay back over a fixed term in monthly amortizations along with the applicable interest charges. This loan is offered by nearly all leading indigenous and international banks operating in the country. Owing to the quantum of money transacted, home loan is a not-so-easy loan to get. Numerous processes and umpteen paperwork goes into the application, making it a critical deal.
If you’re preparing for a housing loan, here is a list of the most commonly applicable requirements in the Philippines. The content provided below has been provided keeping in mind, the most general requirements. Before applying, make sure to ask for an updated document checklist with the bank.
Loan Application Form
To begin with, the loan application form is a basic document which gives first hand information about you and your background such as income and contact details. It helps lenders establish your credentials and upload the application information on their database to help them process further. Here are a few pointers that can help you successfully fill and furnish the application form.
- Ensure to fill all the relevant tabs and spaces. Before you start to fill the form, verify with the representatives on the tabs you’re required to fill.
- Provide your signature where required. Not doing so can result in rejection or delay in processing your application.
- Verify the information thoroughly before submission. As mentioned above, providing incorrect or insufficient information may delay the application process.
Note: The form is available at the nearest branch. Most of the institutions also let you download a copy from their website for easy access.
ID Proof Documents
This requirement is elementary and applicable for all the banks. The applicant must submit an ID proof issued by a government agency. It should contain the applicant’s photograph and signature. The following are the acceptable IDs as per BSP (Bangko Sentral ng Pilipinas).
- Driver’s License
- GSIS e-card (Government Service Insurance System)
- PRC (Professional Regulation Commission) ID
- Postal ID
- NBI (National Bureau of Investigation) Clearance
- Senior Citizen Card
- SSS (Social Security System) Card
- Digitalized Bureau of Internal Revenue ID
- Police Clearance
In addition to the above, the following documents are also acceptable, depending on the background of applicant such as nationality and place of employment.
• OFW ID
• OWWA (Overseas Workers Welfare Administration) ID
• Seaman’s Book
Overseas Filipino Workers
• ACR (Alien Certificate of Registration)
• ICR (Immigrate Certificate of Registration)
Non- Filipinos - Foreigners and Expats
NCWDP (National Council for the Welfare of Disabled Persons) issued certificate
Government Office and GOCC ID
Government employees and Armed Forces Personnel
• IBP (Integrated Bar of the Philippines) ID
• Certificate issued by DSWD (Department of Social Welfare and Development)
• Other IDs issued by companies regulated by BSP, IC or SEC
Income Proof Documents
Depending on the source of income (employment or self employment), you will be required to furnish multiple documents supporting your income. Remember, this is one of the most critical phase of documentation since key decisions are made on the basis of your employment and income.
Employed Locally (Salaried)
• COE (Certificate of Employment) with breakdown of salary
• Latest Payslips
• Latest ITR (Income Tax Return)
• Recent statement of account from the bank
Self Employed (Businessmen)
• Certificate of Business Registration issued by DTI (Department of Trade and Industry (DTI) or SEC (Securities and Exchange Commission.
• Latest statement of account from bank.
• Latest Financial Statements (Audited)
• Latest ITR (Income Tax Return)
• For income from rent, lease contract and copy of title (TCT/CCT) should be produced.
Overseas Filipino Workers (OFWs)
• COE (Certificate of Employment) with breakdown of salary.
• Proof of Remittance/Latest Payslips
• Latest bank statements
• Seafarer/Seaman should submit latest crew contract.
• Land based OFWs should provide Employment Contract/Renewal Contract
Note: Self employed should be running a profitable business for a certain number of years. Foreigners and expats should provide ACR (Alien Registration Certificate)/AEP(Alien Employment Permit).
Documents falling under this category is required at a later stage towards the end of loan processing. Some of the most commonly required documents have been detailed below.
- Photocopy of CCT/TCT (Condominium Certificate of Title/Transfer Certificate of Title)
- Lot plan certified by licensed Geodetic Engineer (should contain location and vicinity map)
- Copies of Tax clearance/Tax receipts & declaration
- For accredited projects, a copy of Endorsement letter/computation sheet/contract to sell from the developer with the contract price
- For condominium's, Master Deed of Declaration of Restrictions should be furnished
Specific Documents (Depending on the type of housing loan)
Type of Loan
• Floor plan (building plan)
• Labor cost and bill of materials
• Certified details of building specifications provided by Engineer/Architect.
• Statement of loan account along with payment receipts
Documentation Requirements of Leading Housing Loan Products in the Philippines for Filipinos
- Filled and signed loan application form
- A copy of acceptable ID card.
- Marriage Certificate (If applicable)
- If Employed - Salary slip and Certificate of Employment (COE)
- If Employed Abroad - Latest proof of remittance for 3 months, Crew Contract for seafarers and Salary slip and Certificate of Employment (COE)
- If Self-Employed - A copy of Bank Statements or Passbook for the last 3 months, Certificate of business registration with DTI, copy of the Audited Financial Statements of the last 2 years and the proof of income.
- A complete and signed application form from the bank.
- A government issued ID proof such as SSS, Passport, Driver’s License etc.
- Income Tax Returns with BIR Bank Stamp (Form 2316) or salary slips of the last three months.
- Bank statements of last 3 months.
- Mortgage Redemption Insurance (MRI) Application Form.
- Latest Income Tax Return (BIR Form 1700 / 1701) of the last 2 years.
- If self-employed, financial statements (audited) for the last 2 years.
- DTI Business Permit or SEC Registration.
- Relevant Collateral Documents.
- Certificate for employment and pay slips for salaried applicants and audited in-house financial statements of last two years for self-employed applicants.
- Latest Income Tax Return statements
- Latest bank statements
- List of at least three suppliers and customers for self-employed applicants.
- Overseas Filipino Workers should submit the POEA contract and Working/Immigrant Visa or Green card in addition to the normal requirements.
- For Individual Borrowers - Government issued ID card, Passport or ACR (if foreigner)
- For Corporates - SEC Registration, General Information Sheet
- For the locally employed - ITR or Certificate of Employment or payslips of the last 3 months
- Land Based - Certificate Of Employment with email of employer
- Sea Based - Latest POEA Contract
- For Self Employed - 6 months bank statement with BOO Certification of “No Overdraft Charges”
- For Corporates - 2 years AFS and ITR or 6 months bank statement with BOO Certification of “No Overdraft Charges”
- Completely filled and signed housing loan application form from the bank.
- Copy of two valid ID proofs issued by the government.
- A non-refundable fee (appraisal fee) of Php 3,500 will be charged.
- A separate application form is required if the home loan is availed with a spouse or another co-borrower.
If the Applicant is Employed in the Philippines:
- A copy of latest ITR Statements
- Proof or Certificate of employment (COE)
- Alien Certificate of Registration for residents who are not Filipinos.
If the Applicant is an Overseas Filipino Workers:
- Proof of inward Remittance
- A copy of the Passport
- Latest Contract of Employment and for direct hires the certificate should be validated by the Philippine Consulate.
- Exit Pass and Crew Contract from POEA for seafarers
- PNB prescribed Special Power of Attorney.
For Applicants who are Self-employed Businessmen:
- A copy of Income Tax Returns for the last 3 years.
- SSS / GSIS / PRC License / Driver’s License.
- Registration of Business Name (DTI) or SEC.
- Articles of Incorporation and SEC Registration.
- GIS or General Information Sheet of the business.
- Income statements or audited financial statements of the business for the last three years.
- Business Ownership papers - Sole Proprietorship or Joint Ownership or Corporate Partnership.
- List of all Trade References inclusive of suppliers and customers.