Buying a House in Baguio City: Knowing Your Options

sample house design in baguio city

Whether you buy a condominium unit, apartment or house and lot in Baguio City for sale, you will need to shell out a considerable amount to pay for the purchase. Of course, you’ll first need to make the down payment required by the seller or real estate agency. After the initial payment, you can apply for a loan to pay for the rest of the price of your real estate investment in Baguio City. But do you know there are several ways you can pay for the house you buy? Here are some of your options:

 

GOVERNMENT FUNDING

If you are a citizen of the Philippines and are thinking of making a real estate investment in Baguio City, you can apply for a housing loan from Pag-Ibig, which is believed to be the most suitable financing option for employed individuals wishing to own a house. This is because they offer the lowest interest rates and they have time and again increased their loan amount to cater for those who earn minimum wage. To be able to qualify, you need to be a Pag-Ibig member for at least 24 months and have no existing housing loan. However, you may not be granted funding if you will be more than 60 years old upon the maturity of the loan.

 

Another form of government funding you can consider is through an SSS loan. They offer loans for purchasing a new or existing house and/or lot or a condominium in Baguio city. The loan can have a fixed interest rate if the loan does not exceed beyond 15 years. Otherwise, the loan will be re-priced every five years.

 

 

IN-HOUSE FINANCING

Most of the time, developers offer buyers in-housing financing option, granted that you meet their qualifications. With this kind of loan, you will need to pay 10-20% down payment. The rest of the price of the house and lot in Baguio City for sale or condominium in Baguio City will then be loaned to you by the developer. This means that the higher your down payment is, the lower your monthly amortization will be. A downside to this kind of financing scheme is that most in-house loans have shorter terms, which means higher monthly payments.

 

 

MAJOR BANKs

Depending on your credit rating or history, your bank could grant you a home loan to pay for your purchase of condominium in Baguio City. You will need to talk to your bank, so they can assess your financial capacity. Once they are satisfied with the evaluation they will make, they are going to grant you a home loan. But banks have the highest interest rates, which means higher amortization.

 

There are also loan sharks who can offer financial assistance for when you buy a house and lot in Baguio City for sale. But make sure you know exactly what the terms are before you sign a contract.