Mortgage to buy condo

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Mortgage to buy condo


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Old 15th November 2019, 03:55 AM
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Default Mortgage to buy condo

I'm a single American guy who has been coming to PH for many years. I'm looking to buy a condo in manila/BGC and will need a mortgage. From what I can tell from my research I'm expecting I need 20% down and will at best get a 10 year term though I would love a 20 year. I'm assuming also I will pay the higher end of the rates which are like 6% these days.

I also am thinking I will need an SRRV visa to get a mortgage.

Anyone have any experience in this area?

I would also love some suggestions on what banks are mortgage friendly for expats. I've filled out some online contact forms for various banks like BDO but they all seem clueless on expats. Most tell me to apply for a mortgage but won't tell me what they want for expats (e.g. SRRV, etc).

Ideally I would like to get pre-approved for a mortgage like I can in the US.

Thanks in advance!

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Old 15th November 2019, 06:38 AM
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Welcome to the forum Max... Here's a few links for SRRV, you'll be working through them. https://pra.gov.ph

Contact information https://pra.gov.ph/contact/

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Check here for professional help with the Philippine Bureau of Immigration PBI https://www.facebook.com/officialbureauofimmigration another link for forms https://immigration.gov.ph or Philippine Retirement Authority (PRA) for an SRRV Visa https://pra.gov.ph/contact/ Always stay alert and don't let your guard down.
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Old 15th November 2019, 06:42 AM
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Good luck.

When I was shopping for a new car recently, every sales person I talked to automatically assumed that I was a straight cash customer, no auto loan.

From the way they were talking it appeared that it was that foreigners could not get loans here, not that they expected an expat to have the cash available for cash purchase.

If you are SRRV, you can convert your deposit to buy the condo. That may help with the 20% down payment.

Also do not expect that there are truth in lending laws here. All the sales brochures that they gave me quoted the full price, down payment required, and monthly payments for 3, 4 and 5 year amortization. No where did they state that the cash discount would be forgone or what the annual percentage rate would work out to be. (I calculated it because I am a nerd, and it was in the 15%+ range.)

Your best bet might be a private placement or having the vendor take the mortgage.
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Old 15th November 2019, 06:56 AM
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Quote:
Originally Posted by M.C.A. View Post
Welcome to the forum Max... Here's a few links for SRRV, you'll be working through them.
Thanks for that info. I think I understand the basics on SRRV just looking for confirmation that I need it to get a mortgage.

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Old 15th November 2019, 06:58 AM
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Quote:
Originally Posted by Manitoba View Post
Good luck.

When I was shopping for a new car recently, every sales person I talked to automatically assumed that I was a straight cash customer, no auto loan.

From the way they were talking it appeared that it was that foreigners could not get loans here, not that they expected an expat to have the cash available for cash purchase.

If you are SRRV, you can convert your deposit to buy the condo. That may help with the 20% down payment.

Also do not expect that there are truth in lending laws here. All the sales brochures that they gave me quoted the full price, down payment required, and monthly payments for 3, 4 and 5 year amortization. No where did they state that the cash discount would be forgone or what the annual percentage rate would work out to be. (I calculated it because I am a nerd, and it was in the 15%+ range.)

Your best bet might be a private placement or having the vendor take the mortgage.
Yes I know about the SRRV conversion and am I'm 50+ so the SRRV deposit will be $10k. I am looking at existing condo purchase not new-build so there's no builder financing available.

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Old 15th November 2019, 08:11 AM
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I wonder if the loans are like getting a checking account at different banks? It all depends on the branch. When I was in Tagum city I opened a pesos and cash accounts with no problem with the CDO branch there. After I filled out paperwork the bank rep said she would be right back. She went into the manager and he signed off on the paperwork right away. then after I was with them for about 8 months they even offered me a credit card. I understand this is unheard of there. Could the mortage loans be the same way? Depends on who you are dealing with and the authority to approve the loan?

Art

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Old 15th November 2019, 10:14 AM
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Hi Max and welcome to the forum, enjoy and contribute.
SRRV holding deposits for over 50's are based on minimum pension or no pension the later US 20K. To convert to property (condominium/lease) is as I understand a deposit of US 50K
Why buy a condo that will be torn down in 30, 40, 50 years to build a better one because all your condominium (body corp fees we call here in Oz) contributions were flittered away in bribes and negligent property maintenance?
Simply rent at 5% and oft times less instead of throwing not 6%,,,,,,,,, wait for it............

https://www.rappler.com/business/220...ome-loans-2019

While I'm sure you are experienced with Filipino ways Max after your travels here one needs to take stock and do it again and yes again, the Philippines. More fun apparently.

While I have not helped you to secure a loan to purchase, I offer renting is a viable alternative as we did 6 or 7 years ago and we simply moved away, no strings attached when the lease came up for renewal we got our two months deposit back,,,,,,, the owner loved us, I scrubbed walls and floors for weeks when we first moved in and kept it that way, a sad story when we took over the house we purchased a few years ago and left the previous owner as the tenant, we won't go there with that pig.....
Renting either long or short term is a viable proposition, agoda, Airbnb or simply get your hands dirty and walk/drive the streets to secure accommodation in your chosen area, no commitment and free to move around. FB can also be your best friend, from experience most Filipinos google and FB.

Good luck securing a Mortgage in a foreign country, I'm sure it happens but difficult to secure.

Cheers, Steve.
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Old 15th November 2019, 10:26 AM
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Quote:
Originally Posted by MaxLifeTraveler View Post
Thanks for that info. I think I understand the basics on SRRV just looking for confirmation that I need it to get a mortgage.
No mortgage required to avail SRRV, all the requirements are on their site (when it's working) and though what seems to be a minefield is pretty simple once absorbed.

Cheers, Steve.

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Old 16th November 2019, 01:48 AM
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No mortgage required to avail SRRV, all the requirements are on their site (when it's working) and though what seems to be a minefield is pretty simple once absorbed.

Cheers, Steve.
Steve I think you misunderstood... My goal is to buy a condo with a mortgage and SRRV is something I *think* I need to get a mortgage. Yes SRRV has other benefits but its not my primary goal at this point.

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Old 16th November 2019, 02:32 AM
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Quote:
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While I have not helped you to secure a loan to purchase, I offer renting is a viable alternative...
Cheers, Steve.
Yes renting is an option but I am of a mindset that property values increase in the right markets and I'm paying myself (except the interest to the bank) instead of someone else. Back in the US I have been renting for 10+ years due to a "nuclear winter" divorce. I am so tired of giving money away as rent.

Definitely appreciate your perspective!

mike
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