# Mortgage to buy condo



## MaxLifeTraveler (Nov 15, 2019)

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!


----------



## M.C.A. (Feb 24, 2013)

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/


----------



## Manitoba (Jun 25, 2014)

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.


----------



## MaxLifeTraveler (Nov 15, 2019)

M.C.A. said:


> 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.


----------



## MaxLifeTraveler (Nov 15, 2019)

Manitoba said:


> 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.
> 
> ...


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.


----------



## greenstreak1946 (May 28, 2017)

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


----------



## bigpearl (Jan 24, 2016)

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/220308-high-interest-rates-will-bite-home-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.


----------



## bigpearl (Jan 24, 2016)

MaxLifeTraveler said:


> 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.


----------



## MaxLifeTraveler (Nov 15, 2019)

bigpearl said:


> 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.


----------



## MaxLifeTraveler (Nov 15, 2019)

bigpearl said:


> 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


----------



## Zep (Jun 8, 2017)

MaxLifeTraveler said:


> 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.


To buy a condo you do not need a SRRV. But like you say it may be that you need an SRRV to get a loan plus a big down payment. It could be that you cannot get a loan no matter what as a foreigner.

Might have better luck with someone selling new condo units especially if they are having a hard time unloading them. They might be able to help with financing.


----------



## bigpearl (Jan 24, 2016)

MaxLifeTraveler said:


> 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.


Hi again Mike, take in what others say/suggest then research and formulate plans accordingly. I personally cannot answer your question with regards to SRRV nor SIRV nor 13A visas and their relationship/value to obtain a mortgage as we yes I also as many others did survive "the nuclear winter" and moved on, as we do. We are cash buyers and as others have said and I agree cash is king in this country, most countries if not all.

Firstly and yes it's none of my business but are you on a pension to avail the US 10K admission or self funded and pay the US 20K with an SRRV?
My understanding of the process after talking to the PRA is to convert your deposit into property or long term lease has to be a US 50K deposit and takes about 6 months to release those funds. I may stand corrected by the brains trust or those that went this path and my apologies if I am incorrect. Further to this and please do yourself the favour of research here, other expat sites as well as government sites. Upon trawling you will find it's not that simple as the PRA need to be noted on the title or lease "encumbered" so that they get their deposit back if you try to sell and it must be clearly stated in their wording to secure. I have posted the link for this on many sites, a caveat. So now If I choose to go down the SRRV track we need to get our attorney to change the freehold title and the 25 + 25 year lease where as now I hold a lease from the property owner (my partner) not recognised within Filipino law,,,,,,, until they change it.

If you are thinking of investing funds into the Philippines please do it wisely so it doesn't come back and bite you or you are prepared to lose it. A mortgage for a foreigner in all countries will be difficult to achieve and as all lenders with sharp pencils do is try to screw you. Opening a bank account or getting a local licence can be fraught with danger and then some. A mortgage with a single foreigner? Difficult. 

I do hope others chime in here and offer alternatives.

Cheers, Steve.


----------



## simonsays (Feb 11, 2009)

MaxLifeTraveler said:


> 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.


Srrv won't move a bank to give you a loan. Loans are subjective in Philippines, as they are managed by banks who declare massive profits by being risk averse. Or they loan at high interests. Like a 10,000 p loan repaid as 19,000 in 6 months. Likewise for bikes etc. Because they get a good return on the interest. No such joy for giving out a loan for a foreigner who's not earning in Philippines. I had problem opening an account as under BSP rules, foreigners minus a residency can't obtain a bank account. With my probationary visa - Sterling blinked. And with their close monitoring of my transactions, 3 plus years later they asked me if I would want to pick up one of their repossessed 4x4, or a condo .. when I said maybe, but for cash, they lost interest. 

Sent from my ASUS_X008 using Tapatalk


----------



## MaxLifeTraveler (Nov 15, 2019)

simonsays said:


> Srrv won't move a bank to give you a loan. Loans are subjective in Philippines, as they are managed by banks who declare massive profits by being risk averse. Or they loan at high interests. Like a 10,000 p loan repaid as 19,000 in 6 months. Likewise for bikes etc. Because they get a good return on the interest. No such joy for giving out a loan for a foreigner who's not earning in Philippines. I had problem opening an account as under BSP rules, foreigners minus a residency can't obtain a bank account. With my probationary visa - Sterling blinked. And with their close monitoring of my transactions, 3 plus years later they asked me if I would want to pick up one of their repossessed 4x4, or a condo .. when I said maybe, but for cash, they lost interest.
> 
> Sent from my ASUS_X008 using Tapatalk


Wow that is most unfortunate. 

Years ago I was able to open a BPI savings account with only an extended tourist visa. I didn't use it much and closed it after a year. That was 10 years ago so maybe things have gotten worse.

mike


----------



## M.C.A. (Feb 24, 2013)

*Opening a Philippine Bank Account*



MaxLifeTraveler said:


> Wow that is most unfortunate.
> 
> Years ago I was able to open a BPI savings account with only an extended tourist visa. I didn't use it much and closed it after a year. That was 10 years ago so maybe things have gotten worse.
> 
> mike


Yes Mike... I opened up my Philippine Bank Account PNB (US Dollar) 9 years ago and the requirements back then were 4 photo graphs I think 1" in size, copy of my electrical bill showing our address, Passport and Permanent Resident Card.


----------



## simonsays (Feb 11, 2009)

M.C.A. said:


> Yes Mike... I opened up my Philippine Bank Account PNB (US Dollar) 9 years ago and the requirements back then were 4 photo graphs I think 1" in size, copy of my electrical bill showing our address, Passport and Permanent Resident Card.


Actually it's still a big hit or miss. A lot of banks are diligently following BSP rules and some, like Security or RCBC, often grab the customer. And sometimes one branch of BDO says no, and another says YES, at least with a tourist ACR


----------



## JRB (Aug 27, 2019)

Back in March I was able to find in house financing through a developer. The condo is still being built and will not be done until they are saying April. I currently do not have any visa or bank account in PI. I was there on a tourist visa for 2 weeks. When the condo is complete they are wanting me to pay the move in fees via bank check. This is the only problem I have at this point. When I signed the paper work with the developer they recommended a branch of East West bank that would allow me to open an account without an ACR-I or SRRV or any proof of permanent residency. I stopped by the branch and they told me due to new regulations they can no longer open accounts for foreigners without a ACR-I or SRRV. I am retiring next year and will be moving there permanently. So, I will be taking care of all the visa requirements then and will open an account at that time. 

Currently, I am paying the minimum monthly for the condo until it is done. This is the down payment. They are allowing me make the down payment monthly as long as the down payment is paid within 18 months. Which it will. I am paying a higher interest ( I believe 9.25%) because I am a foreigner. This is for 10 years. The longest they said that they could finance due to me being a foreigner. After I retire next year and move to PI I will pay the mortgage off (if I am happy with it) I am only making the minimum required, because when the condo is done and for some reason I decide to back out I only get half of what I paid back. 

As far as the SRRV. I went straight to the agency that helps foreigners with the SRRV process and they said in order to use a condo as "deposit" The condo has to be paid in full and worth at least $50,000 USD.


----------



## M.C.A. (Feb 24, 2013)

*Purchase of a Condo*



JRB said:


> Back in March I was able to find in house financing through a developer. The condo is still being built and will not be done until they are saying April. I currently do not have any visa or bank account in PI. I was there on a tourist visa for 2 weeks. When the condo is complete they are wanting me to pay the move in fees via bank check. This is the only problem I have at this point. When I signed the paper work with the developer they recommended a branch of East West bank that would allow me to open an account without an ACR-I or SRRV or any proof of permanent residency. I stopped by the branch and they told me due to new regulations they can no longer open accounts for foreigners without a ACR-I or SRRV. I am retiring next year and will be moving there permanently. So, I will be taking care of all the visa requirements then and will open an account at that time.
> 
> Currently, I am paying the minimum monthly for the condo until it is done. This is the down payment. They are allowing me make the down payment monthly as long as the down payment is paid within 18 months. Which it will. I am paying a higher interest ( I believe 9.25%) because I am a foreigner. This is for 10 years. The longest they said that they could finance due to me being a foreigner. After I retire next year and move to PI I will pay the mortgage off (if I am happy with it) I am only making the minimum required, because when the condo is done and for some reason I decide to back out I only get half of what I paid back.
> 
> As far as the SRRV. I went straight to the agency that helps foreigners with the SRRV process and they said in order to use a condo as "deposit" The condo has to be paid in full and worth at least $50,000 USD.


Welcome to the forum JRB and it sounds like you have a good plan and thanks for sharing your story with other and look forward to hearing more from you.


----------



## bigpearl (Jan 24, 2016)

JRB said:


> Back in March I was able to find in house financing through a developer. The condo is still being built and will not be done until they are saying April. I currently do not have any visa or bank account in PI. I was there on a tourist visa for 2 weeks. When the condo is complete they are wanting me to pay the move in fees via bank check. This is the only problem I have at this point. When I signed the paper work with the developer they recommended a branch of East West bank that would allow me to open an account without an ACR-I or SRRV or any proof of permanent residency. I stopped by the branch and they told me due to new regulations they can no longer open accounts for foreigners without a ACR-I or SRRV. I am retiring next year and will be moving there permanently. So, I will be taking care of all the visa requirements then and will open an account at that time.
> 
> Currently, I am paying the minimum monthly for the condo until it is done. This is the down payment. They are allowing me make the down payment monthly as long as the down payment is paid within 18 months. Which it will. I am paying a higher interest ( I believe 9.25%) because I am a foreigner. This is for 10 years. The longest they said that they could finance due to me being a foreigner. After I retire next year and move to PI I will pay the mortgage off (if I am happy with it) I am only making the minimum required, because when the condo is done and for some reason I decide to back out I only get half of what I paid back.
> 
> As far as the SRRV. I went straight to the agency that helps foreigners with the SRRV process and they said in order to use a condo as "deposit" The condo has to be paid in full and worth at least $50,000 USD.


Welcome to the forum and we look forward to hearing more from your experiences.
The US 50K is easy as most bed sitters in Manila (not sure where you are) as an example your 50K would be minimum cost and something grander a lot more.
If you care to trawl back through the archives in this and other PH. expat forums you will find that if you do use your deposit/security offered up to the PRA to gain your SRRV and roll over to an investment meeting their criteria, The PRA's name will/must be noted with the correct wording (another story and costly) must be noted on the title no different to a/as well as the mortgagee or no is listed on your encumbered title. If you want to sell, the mortgagee and the PRA get their funds first unless you cancel your SRRV.

A mine field but navigable. What suits some not others. For me I will go the tourist route until I decide to draw a pension and then drop US 10K into their coffers.

Cheer, Steve.


----------



## JRB (Aug 27, 2019)

Thanks for the welcome. I have been reading through the forum for awhile and learned a lot and finally decided to contribute. I have read your adventures Steve and am glad you have shared. I will take the tourist route for awhile until I settle in and then decide at that point. Most likely drop the 10K when the time comes. Can't see myself signing over my residence to a gov't agency. Anyway, I only mentioned the SRRV because I have seen in questions in other posts about the SSRV and how condos fit in to the whole thing and did not recall a clarification on that issue.


----------



## bigpearl (Jan 24, 2016)

JRB said:


> Thanks for the welcome. I have been reading through the forum for awhile and learned a lot and finally decided to contribute. I have read your adventures Steve and am glad you have shared. I will take the tourist route for awhile until I settle in and then decide at that point. Most likely drop the 10K when the time comes. Can't see myself signing over my residence to a gov't agency. Anyway, I only mentioned the SRRV because I have seen in questions in other posts about the SSRV and how condos fit in to the whole thing and did not recall a clarification on that issue.


Please don't get me wrong JRB, you can still buy a condo seperate to the SRRV and not involve them at all but if you wish to convert your deposit over to property or a lease then then they will be noted on the doc's no different to a mortgagee.
If going down this track it has to be done in the right order or you will find legal doc's will have to be done twice and yes of course "more costs"

What Area are you considering, perhaps I missed it in an earlier post.
Regardless, good luck and hope things work out to suit.

Cheers, Steve.


----------



## SeyaRafael (Dec 30, 2019)

Hmmm... good to have this post as we're also planning to buy either a house or a condo. Thanks for the info and responses.


----------



## JRB (Aug 27, 2019)

I understand what your saying Steve and thanks for letting me know. I was planning to use the Condo for the SRRV deposit, but after reading posts about issues others have had, I think I am going to just give them the 10K and not worry about any headaches with docs etc....

I have already purchased a condo in Lapu-Lapu. A year later still waiting for it's completion.


----------



## bigpearl (Jan 24, 2016)

JRB said:


> I understand what your saying Steve and thanks for letting me know. I was planning to use the Condo for the SRRV deposit, but after reading posts about issues others have had, I think I am going to just give them the 10K and not worry about any headaches with docs etc....
> 
> I have already purchased a condo in Lapu-Lapu. A year later still waiting for it's completion.


JRB. headaches are a little different to heartaches, research and at the end of the day? We all need to come to terms with life and the idiosyncrasies that befall us every day here, a sunny disposition and lots of acceptance along with tolerance wins the day.

Like you have mentioned, and after plenty of research will eventually go down the SRRV tribunal to achieve less hassles down the track,,,,,, but when I am ready to suit my needs.

BTW congrats with your purchase and dearly hope it comes together for you.

Cheers, Steve.


----------



## finobak (Sep 15, 2021)

I think you want to do this out of a pressing necessity, because borrowing is never the most correct, but constraint makes you resort to such solutions. But if you really need a mortgage, I can propose what I used a few years ago. I went to ****snip* I did this because a friend proposed to me who had several experiences with them, he also described to me how the principle of transparency works, which is a fundamental and enormously important principle. I hope that I managed to be of use to you and that everything will be fine with you


----------

