The program is open to Filipinos and non-Filipinos residing and working abroad who are interested in purchasing residential real estate in the Philippines. Borrowers may avail of only one loan under the program.
Properties that can be acquired under the program are a lot, house & lot, condominium, townhouse or rowhouse and are initially limited to the following locations:
| Metro Manila | Bacolod | Baguio |
| Batangas | Cagayan de Oro | Cavite |
| Dagupan | Davao | General Santos |
| Iloilo | Laguna | Legaspi |
| Metro Cebu | Naga | Quezon |
| Rizal | Tacloban | Zamboanga |
Interest rates are variable at 3% over Wall Street Prime and adjust annually. Proceeds of the loan will be released lump sum in Philippine Pesos (converted at the Bank's prevailing buying rate for telegraphic transfers).
The loan will be collateralized by a Standby Letter of Credit (L/C) to be issued by PNB Manila. The L/C will, in turn, be secured by a real estate mortgage on the property to be acquired.
Who can borrow ...Filipinos residing and working abroad who have maintained their Filipino citizenship.
Natural-born Filipinos residing and working abroad who have lost their Filipino citizenship (limited to a maximum lot area of 1,000 square meters).
Foreigners/non-Filipinos (limited to the acquisition of condominium units only where the common areas are owned by the Condominium Corporation i.e. alien interest in such corporation should not exceed 40% as required by law).
Depending on your paying capacity or actual need, the maximum amount you can borrow is US$1.0 million.
The minimum loanable amount is US$10,000 for the purchase of a lot and US$20,000 for the purchase of a house & lot, townhouse, condomiunium or rowhouse.
The loan will usually be limited to a maximum of 60% of the current market value of the property as determined by the Bank's appraisers. 40% of the selling price of the property must be funded by the borrower.
For a house and lot, townhouse, condominium or rowhouse - maximum of 20 years; for a lot - maximum of 10 years.
Repayment of your loan will be in U.S. dollars with an option to choose either a:
The amount of your monthly amortization will be adjusted upward or downward depending on the interest rate charged for a particular interest period (i.e. one year). The term of the loan is fixed.
Uniform amount of monthly amortization for the entire term of the loan regardless of periodic interest rate changes. Loan term shall be adjusted in case of increases or decreases in the interest rate.
NOTE: Under this repayment arrangement, if at the end of the original term you still have a remaining balance due to interest rate adjustments, the term of the loan may be extended up to 1/2 of the original term. Monthly amortizations will be recomputed based on prevailing market rates at the time of the loan extension. If at the end of the extended term a remaining balance still exists, the borrower will be required to make a balloon payment corresponding to the unpaid principal plus all interest and charges.
Payments commence one month after loan release. Payments will be made against a monthly statement of account to be remitted approximately 2 weeks prior to each monthly due date.
Send a completed application package to PNB together with supporting documents and fees. This will include:
Upon receipt, a formal appraisal report will be requested from PNB Manila and PNB New York will evaluate the credit worthiness of the loan applicant. Analysis will be conducted in accordance with existing credit standards, taking into particular consideration the applicant's character, capacity to pay and stability of residence/employment.
The approval/denial process will take approximately two weeks from the time PNB receives all required documentation. This decision will be conveyed to the applicant in writing. Final approval, however, will be contingent upon receipt of acceptable appraisal figures on the proposed real property.
Upon final approval, legal documentation will be prepared. Loan related documents will be signed by the borrower in the U.S.. Real estate and L/C related documents may be signed by the borrower in the U.S. or, through the execution of a 'Special Power of Attorney', by an "Attorney-in-Fact" in the Philippines. Either will require authentication by the Philippine Consul.
At this point, the bank will also require a life insurance policy on the borrower, in the amount of the loan, naming the bank as beneficiary.
Upon receipt by PNB Manila of all signed documents, the real-estate mortgage is filed, the standby L/C is issued and loan proceeds are released to the seller. Real property titles are kept at PNB Manila for safekeeping and copies forwarded to PNB New York for the branch and buyer's files.
The entire process, including appraisal, legal, filing, perfection of documents and loan release is expected to take approximately 2-3 months. Once finalized, the borrower may be required to open a savings account with PNB New York and authorize debits for all continuing loan/real estate related charges/fees. A 1% origination fee will also be charged at the time the loan is closed.
Thereafter account statements will be sent to the borrower 2 weeks prior to each monthly loan payment due date.
All legal fees, documentary stamps and out-of-pocket expenses will be paid by the borrower.
All late payments will be subject to a late payment charge equal to 5% of the late installment.
The Bank will attempt to collect on delinquencies to a maximum of 90 days during which a sequence of demand letters will be sent to the borrower. If no attempt is made by the borrower to contact the Bank and settle outstanding obligations, on the 90th day the Bank will draw against the Standby Letter of Credit collateralizing the loan. At this point the loan is transferred to the Philippines and booked as a 10 DAY PESO DEMAND LOAN subject to Philippine Peso rates and Peso Loan procedures. If still unpaid within the 10 day Peso Loan period immediate foreclosure on the property will be implemented.
| Estimated PHPeso Home Loan Amount @ PHP50/US$1 | Equivalent US$ Loan Amount | % Interest Rate | Monthly Payment 10 Yrs (US$) | Monthly Payment 15 Yrs (US$) | Monthly Payment 20 Yrs (US$) |
|---|---|---|---|---|---|
| 500,000 | 10,000 | 11.25% | 139.17 | 115.23 | 104.93 |
| 1,000,000 | 20,000 | 11.25% | 278.34 | 230.47 | 209.85 |
| 1,500,000 | 30,000 | 11.25% | 417.51 | 345.70 | 314.78 |
| 2,000,000 | 40,000 | 11.25% | 556.68 | 460.94 | 419.70 |
| 2,500,000 | 50,000 | 11.25% | 695.84 | 576.17 | 524.63 |
| 5,000,000 | 100,000 | 11.25% | 1,391.69 | 1,152.34 | 1,049.26 |
| 10,000,000 | 200,000 | 11.25% | 2,783.38 | 2,304.69 | 2,098.51 |
| 15,000,000 | 300,000 | 11.25% | 4,175.07 | 3,457.03 | 3,147.77 |
| 20,000,000 | 400,000 | 11.25% | 5,566.76 | 4,609.38 | 4,197.02 |
Yes. PNB's 'Own a Philippine Home Loan' can be used to refinance existing Peso mortgages. Refinancing through PNB's program will usually result in a lower interest rate and lower monthly installments.
Yes. However, under Section 7, Article XII of the Philippine Constitution, foreigners may not acquire private land. Therefore, title to the property will be in the name of the Filipino spouse but the loan must be signed by both Filipino and foreigner spouses.
Yes. But your mother would have to sign the loan as a "Grantor of Collateral". This means that although she is not a borrower on the loan and does not have to pay back the loan if her children default, she is authorizing the use of the property she owns as "collateral" and is fully aware of the risk of foreclosure on the property if her children do not repay the loan.
Yes.
The answer to this shall be determined on a case to case basis, depending on the prospective stability of U.S. employment, the current and future asseets of the borrower and other factors. In general, this program was created for those Filipinos and foreigners who wish to buy Philippine real estate and are PERMANENTLY working overseas. It is this stable stream of future dollar income which the bank looks to as its primary source of repayment on the loan.
As a former Filipino citizen, you are entitled to purchase private real estate (i.e. house and lot) up to a maximum area of 1,000 square meters. Foreigners, on the other hand, or children of Filipino parents born in the U.S., are entitled only to purchase condominium properties wherein common areas are owned by the condomimium corporation.
No. The bank will check your credit history and bank accounts to ascertain that the 40% downpayment is truly equity from the borrowers.
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