Both homebuyers and home builders can apply for loans under the Landbank Housing Opportunities Made Accessible (HOME) initiative.
Types of Landbank home loan
There are different types of home loan programs offered by Landbank. The list includes the following programs.
Easy home loan
You can purchase or build your new house with an easy home loan. Additionally, it enables current homeowners to refinance their existing mortgage from a different bank, financing company, or internal financing provided by the developer with a new loan. The minimum loanable amount is ₱500,000, and the maximum loan term is 20 years.
Developer’s end-buyers financing tie-up
Thanks to the developer’s end-buyers financing tie-up agreement, you can purchase or build your house through a recognized developer. Funding their housing projects or financing the purchase or construction of a client’s home after an accreditation process also aids developers in expanding their businesses.
The maximum loan term is 30 years, and the collateral will be in the form of a real estate mortgage secured by property purchased from an approved developer’s residential project.
Bahay para sa bagong bayani (3B)
This is a dedicated loan scheme for overseas Filipino workers (OFWs). With loose and flexible terms, the Landbank’s Bahay para sa Bagong Bayani program enables OFWs to purchase, construct, or modify their own homes. The maximum loan term is 20 years.
How to apply a home loan?
- To apply for a Landbank home loan, visit the Landbank website.
- Navigate to Loans and then click on Housing loans.
- When the housing loans page opens, scroll down and click on the arrow under I'd like to apply for a loan.
- The next page will show the application form. In the first step, upload a 1x1 passport of yourself.
- Choose your preferred home loan lending center.
- Select the type of loan you are applying for and input your personal data.
- Fill in your collateral information.
- Input your monthly income details and then your spouse’s details.
- Input your monthly expenses and click on Next.
- Follow the next two steps to complete your application.
Requirements for Landbank home loan
Eligibility
To be eligible for a homa loan, an applicant:
- Must be a citizen of the Philippines
- Must be a minimum age of 21 and maximum age of 65 at the time the loan matures
- Must be self-employed or employed
For employed citizens
- Data Sheet of personal information.
- A statement of employment.
- The borrower’s most recent pay stub shows net take-home pay
- Any two of the most recent billing statements are listed below:
- TV subscription bill;
- Electric bill;
- Water bill;
- Credit card bill;
- Phone bill.
For self-employed applicants
- Business registration and licenses.
- Biographical information.
- Financial statements and the previous three years’ income tax returns with BIR stamps.
Pros and cons
Here are some honest pros and cons of Landbank home loans.
Pros
- It comes with a loan calculator, which you can use to calculate the potential details of your loan.
- There are varieties of home loans to choose from.
Cons
- Landbank home loans have longer terms significantly, which means it is a long-term commitment.
- If you want to sell your property, you will suffer a loss because the right selling price would be the sum of the principal and any interest paid, which is excessive.
How to repay a home loan?
Landbank housing loans can only be repaid in person at the branch where you applied for the loan and signed the contract or through an Automatic Debit Arrangement (ADA). You can track your loan and payments using the Landbank mobile app, and if you forget to make your monthly payment, a late payment penalty fee will be assessed.