One of the biggest financial decisions Filipinos make is choosing a home. It is a crucial decision, so one needs to consider options carefully.
Like every major decision, there are many options to choose from. The government projects the growth of the Philippines’ real estate market due to the growing demand for housing due to urbanization and the expansion of the young professional market.
Aside from locations, sizes, and overall aesthetics, one of the biggest concerns is the financial aspect of acquiring a property.
A Metrobank Home Loan may be the best option if you are looking for bank financing.
What is Metrobank Home Loan?
Metrobank Home Loan is a financing program offered by Metropolitan Bank & Trust Company (Metrobank) in the Philippines.
It provides borrowers with financial assistance to purchase a new home, renovate their existing property, or refinance an existing mortgage.
It offers borrowers flexible payment terms, competitive interest rates, and loan amounts based on their financial capacity.
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Key Features of Metrobank Home Loan
Like most bank financing options, Metrobank Home Loan aims to make owning properties more convenient to the Pinoys’ pocket. Some of the key features that make it a top choice among borrowers include:
Multiple Loan Purposes
The Metrobank Home Loan can be used for various housing-related needs, including:
- Home Purchase – Financing for buying a new house, townhouse, or condominium unit.
- Home Construction – Funds for building a house on an owned lot.
- Home Renovation – Loans for improving or upgrading an existing property.
- Refinancing – Transfer of an existing home loan from another bank to Metrobank, often to secure better interest rates or repayment terms.
High Loanable Amount
The loan amount a borrower can obtain depends on several factors, including the appraised value of the property, the borrower’s income and repayment capacity, and Metrobank’s loan-to-value (LTV) ratio.
Generally, the bank finances up to 80% of the property’s appraised value, allowing borrowers to maximize their financing options while ensuring affordability based on their financial standing.
READ: Can a Foreigner Buy a House in the Philippines?
Metrobank Home Loan Eligibility
There are specific eligibility requirements that must be met by individuals considering applying for a Metrobank Home Loan. Here’s a breakdown of the key criteria:
- Age: You must be at least 21 years old when applying for the loan and not older than 65 years old at the time of loan maturity.
- Citizenship: You need to be a Filipino citizen or a foreigner with a permanent resident visa for the Philippines.
If you are in the Philippines, these are the requirements that you need to prepare:
- You must be a fixed-income earner or self-employed.
- If you are employed, you should have been with your current employer for at least two years.
- Your monthly gross income should be a minimum of Php 40,000 if you’re self-employed, or you must have the same Gross Monthly Family Income if you’re a fixed-income earner.
If you are an Overseas Filipino Worker (OFW), the following conditions apply:
- You must earn at least $1,000 (equivalent to Php 30,000 if self-employed) or have the same Gross Monthly Family Income if you are a fixed-income earner.
- For land-based OFWs who have been employed for less than two years, you must have worked locally for at least five years before becoming an OFW. Alternatively, you may qualify if you’ve had employment with different employers or a combination of local and overseas jobs.
By meeting these requirements, you demonstrate your ability to meet the financial obligations of a home loan, allowing you to secure the financing you need.
The bank may also require more requirements as deemed necessary.
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Metrobank Home Loan Requirements
To complete your Metrobank Home Loan application, you need to provide several key documents. The process is straightforward, but the required paperwork may vary depending on your employment status.
Below is a detailed list of the required documents for home loan applications:
For Locally Employed Applicants:
- A government-issued ID
- Passport or ACR (for foreign nationals)
- One of the following documents: three months’ pay slips, Certificate of Employment, or Income Tax Return
For Self-Employed Applicants:
- A government-issued ID
- Passport or ACR (for foreign nationals)
- A six-month bank statement
For Overseas Filipino Workers (OFWs):
- A government-issued ID
- Passport or ACR (for foreign nationals)
- For Sea-based OFWs: Latest POEA contract
- For Land-based OFWs: Certificate of Employment (COE) with the employer’s email address
In addition to the above, the following Collateral Documents will be required:
- Tax Declaration
- Condominium Certificate of Title (if applicable)
- Specifications / Bill of Materials / House Plans (for house construction applications only)
- Reservation Agreement or Contract to Sell (if the property is under a developer tie-up)
To streamline the application process, clients need to prepare the necessary documents. Again, the approval of a banking loan depends on the financing institution’s appraisal.
Sometimes, the branch may ask for additional requirements to better determine the capacity of the borrower to pay.
Loan Terms
When applying for a Metrobank Home Loan, the repayment terms vary depending on the purpose of the loan. For most loan purposes, including the purchase of a house and lot, residential condominium, townhouse, and lot with house construction, as well as house construction on an owned lot, the maximum term is 25 years.
Additionally, reimbursements for these purposes typically have a 25-year term, except for vacant lots, which have a 10-year term.
Renovations have a repayment period of up to 20 years, while refinancing is set at 15 years, except for vacant lots, which also have a 10-year term.
If the loan is for the purchase of a vacant lot or personal investment (all-purpose), the maximum term is 10 years. For Overseas Filipino Workers (OFWs), the maximum loan term for all purposes is 15 years, except for vacant lots, where the term is limited to 10 years.
Metrobank is a financing institution that can help you achieve your dream home or property investment. Of course, Metrobank House Loan requirements should streamline the application process.
With flexible loan purposes and competitive maximum terms, Metrobank offers various options to suit your needs, whether you’re purchasing a home, constructing a property, or refinancing.
Understanding the loan purposes and terms will help you make an informed decision on how best to manage your repayment.
With all this in mind, you’re one step closer to realizing your homeownership goals with Metrobank Home Loan.
