Applying for a Home Loan in the Philippines

The biggest questions that I asked myself when I was looking for a condominium are; where should I apply for a home loan? Which bank will approve my home loan application? Which has the fastest home loan approval process? Is it going to be difficult? Or should I opt for in-house financing instead?

I went for bank financing, and at that time I had over four months to get a bank’s approval.
The realities started think to sink in when I got my first rejection, it was from PSBank. PSBank was my first bank of choice because my friend who also applied to them a few months earlier got approved. I, on the other hand, never heard from them.

After two weeks, I anxiously submitted my application to China Bank upon the suggestion of my agent. I received a call after a few days for the usual verification process. Over a week later, the lady called me back and dropped the bomb – my loan application was denied because of an unsettled credit card debt with HSBC. I discussed this in this article:

How I Settled My Credit Card Debt

My biggest fear just came back to haunt me again. My agent was now asking me to call HSBC but I refused. I insisted that HSBC will no longer entertain me, and if they do, I might need to go through all the legal stuff which I was not prepared to do. The third rejection is from Metrobank, and next was UCPB. Both banks never get in touched with me; I imagined them literally throwing my application forms in the trash.

Four rejections in a row. That was my life already telling me to pay attention; it has almost gotten me into depression.

So which banks eventually approved my home loan application? And how fast?

First, I am giving a special mention to BPI.

My agent, being so patient urged me to try one more bank. He said he knows someone from the bank who could help. I started to not believe him anymore as that has been his usual line since we started. I completed the paperworks anyway, and he submitted them to BPI.

BPI called me and my brother who is my co-borrower after three days. The next week, they came back and advised me to get a Letter of Full Payment from HSBC. This is the bank clearance that I was talking about in this article:

How to Get a Bank Clearance for your Credit Card

That gave me the strength to ask; will my application be approved if I submit a clearance? The answer from the other line was a positive YES! And so days later, I decided to make that call. And the rest is history.

BPI eventually accepted my application but the total approved amount is less than what I needed. It turns out that they did not include my sister as a co-borrower, and me and my brother’s combined salary only qualify for a certain loan amount. To be fair with BPI, they kept my application active for at least a month and was regularly contacting me if I wanted to proceed.

UnionBank to the rescue!

With my permission, my ever persistent agent filled-out the UnionBank application forms himself and submitted them to UnionBank. He has copies of all my supporting documents so he did not even have to meet me that point.

Their process is quite traditional. On the first week, an agent actually visited me at my apartment and conducted a C.I. and background investigation. Someone also went to our hometown in the far-flung province and looked for my brother at our Municipal Hall where he works. My sister who is working abroad also had to give his employer’s email address for further checking. Overall, it was lots of work but quite fun. After all that we’ve been through, we readily complied to all their requirements.

On the third week, I finally received the best news I would hear that year.

Overall, UnionBank was quite strict but after having been denied by four banks, I did not feel being subjected to a long process anymore. My home loan was booked after two months, and before 2016 ended, I made my first monthly payment.

You might wonder, why didn’t I try BDO? For some reason, I did not think that BDO will approve my application. It was probably due to the quite strict and long process that I went through when I applied for a checking account with them a year earlier. I maybe wrong though, anyone who have positive experiences with BDO in terms of loans? Or do you have a similar story? Feel free to share by leaving a comment below.

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