Investing in the home of your dreams, whether a house and lot or a condominium, is a milestone. Financing a real estate property, however, can be intimidating considering the upfront payments you have to make. This is why people make use of a house loan or mortgage.

Home loans, simply put, are a type of loan used to provide financial assistance to purchase a property. Housing loans in the Philippines are accessed through banks, real estate developers, or PAG-IBIG, the housing development mutual fund in the country.

How bank housing loan works in the Philippines

If you are taking out a home loan in the Philippines, you as the "borrower" enter into an agreement with a lender and agree to pay back your loan over a length of time also known as loan tenure or loan term. You may choose from two housing loan options: public via PAG-IBIG, or private through bank home loan.

Loan rates are different for every bank. Interest rates for different loan amounts in the Philippines likewise differ from bank to bank. 

Monthly payments are commonly given during the tenure until the borrower has fully paid both the principal house loan and the interest. Monthly payments are used to repay interest during the first years of the home loan. The latter years are dedicated to paying off the principal of the mortgage loan. Paying more than the monthly dues will decrease the interest in subsequent months.

To get the best housing loan for you, have a look at the different home loan terms of 8 banks in the Philippines in this article.  Make sure to deep dive into their home loan products, minimum loan amount, and maximum loan amount before completing that loan application form. 


Other ways to get home financing in the Philippines

Of course, banks are not the only house loan options available to purchase a real estate property. Home or property financing can also be done through the following home financing options.

1. Spot Cash Payment

Paying on the spot is the fastest and easiest way to acquire a real estate property. In this option, a buyer of the property pays the price in a short period of time in cash, commonly one month after its date of reservation. Among the benefits of this payment are having fewer requirements, not having to worry about long-term payments, and getting real estate documents in a short period of time. Not most people have the luxury of buying properties at the drop of a hat. While this paying on the spot seems worry-free it is recommended to review your state of finances first before acquiring the property.


2. PAG IBIG Housing Loan

When considering purchasing a house, the PAG-IBIG Housing Loan is commonly what most Filipinos reach for due to its longer loan terms and lower interest rates. In fact, getting a bank loan is regarded as a fallback when the PAG-IBIG home loan fails to materialize. In this option,  the borrower pays the equity initially. The balance will be financed through PAG-IBIG and payment can be up to 30 years. Some downsides to this option include the long processing of documents and having more requirements to fulfill compared to other home loan alternatives.

3. Deferred Cash Payment

This method enables a buyer to see through the payment of the total price of property equally over a specific period of time (e.g. 5 years). A deferred payment arrangement usually entails phrases like "no down payment required" or "no interest." Among the benefits of this option is a short period for processing real estate documents. Also, some developers give out discounts to buyers. Watch out for bigger monthly payments though! PRO TIP: Ask your developer or real estate agent for their recommended or preferred home loan type.


Other types of home loans in the Philippines

For property acquisition functions, the home purchase loan is the most common, whether for acquiring condos or houses and lots.  Banks typically require that a borrower pay at least 20% of the total value of the property before approving a personal loan. This easily points to why major developers have a "20% downpayment, get to move in" offer because 80% will be usually paid by the bank once the loan application is approved.

Below is a list of house loan alternatives other than home ownership:

1. Property Construction Loan

Congrats, you already own your dream home! Naturally, home construction comes next. This loan enables a borrower to design the home of their dreams with the help of a construction or an architectural firm. Along with a loan application form, banks require the title of the lot under the primary borrower's name to be used as collateral. Documents to prepare also include a bill of materials (BoM) and a copy of the floor plan. 

2. Refinancing Loan

People resort to getting a refinance when a new home loan is needed to pay off an existing home loan from another bank. Changing to another home loan product or lender is normal so borrowers can enjoy better rates or a shorter loan term, or consolidate their debt. 

3. Home Improvement Loan

Homes are wear and tear purchases, too, hence the need for home renovation every few years. This type of loan is used for home construction or remodeling. Whether big or small renovations, homeowners can find this a viable financial help.

4. Home Equity Loan

This home loan is basically a second mortgage that lets a borrower use an existing property to get extra funds for home renovation, to acquire a second home, for travel, education, and other personal needs. 

Getting a housing loan in the Philippines comes with requirements and financial responsibilities. Study each option carefully to come up with a good plan to repay the loan. Make these options work for you to make your dream home come true!

A home is meant to allow people to unwind and relax after a day's hard work. It should provide a peaceful atmosphere where one can find reprieve from their bustling lives whatever careers or endeavors they lead. Oftentimes a home's function is neglected due to a mismanaged household and a poorly designed environment. What's meant to offer recuperation ends up depleting people of their energy.

Given today's fast-paced world, it's important to create a calm and tranquil place that offers relaxation and retreat. Here are ways to make your home feel peaceful and relaxing. It starts with simple, mindful use of available space and resources to create a relaxing home design.


1. Clear the clutter.

Instantly get rid of a chaotic environment by clearing the clutter. Unnecessary mess makes the space or rooms in your home stressful. Find time to confront that nagging closet of pre-loved clothes or piles of unused kitchen items or broken furniture. Once you do, you will immediately feel lighter and get rid of unwanted energy in your home. 

2. Let natural light in.

It is amazing how a stroke of natural light brings clarity and peace to the mind. Allowing natural light also highlights the intricate design details of every room in a home. Harsh overhead lights or bulbs can meanwhile ruin the ambiance of a room. At night, the use of non-traditional lighting like fairy lights or table lamps with dimming features that can create a relaxing mood.

3. Create soft surfaces.

Focus on creating soft textures available in places where you spend most time. To make your home cozy, layer on soft throw pillows and blankets. Investing in a comfortable sofa, lounge chair, and bed will surely add on to a relaxing environment. 

4. Choose neutral and cool colors.

Being mindful of the color you choose in your home is important in creating a space that replenishes energy and soothes the mood. In general, natural colors like white, beige, ivory, hues of blue or green, earthy tones like shades of browns and wood are all excellent in creating zen spaces. Make sure to be consistent in your color palette from fabrics to rugs to window blinds. This allows space to flow together to create a soothing atmosphere.

5. Use natural and earthy textures.

Foster a sense of calm through earthy pieces like a coffee table made of original woodwork or a woven chair or side table. Welcome nature into your home by adding house plants that exude tranquility and ground the theme of a room. Plants help clean and oxygenate the air, making your space not only calmer but healthier too!

6. Display things that express your personality.

Decorate according to your passions and things that make you happy. You would want your home to be a reflection of yourself so go ahead hang that artwork that speaks volumes to you. If minimal wall decor or clear surfaces make you feel calm, you are free to experiment on that. If you prefer bold pieces of color and art, that's fine too so long as these important items bring in good vibes and serve to inspire and energize you.

7. Go for a signature scent.

Utilize the power of aromatherapy to welcome calmness in your home. Scented candles are capable of adding warmth and filling a room with pleasant aroma. Try using lavender, freesia, or eucalyptus for a spa-like calming effect. Scent memory is also used by some to transport them to their happy places and heartwarming memories. If you are not a fan of scented candles, you may opt for an essential oil diffuser or an incense burner. Mixing up a spray from distilled water and essential oils works just the same!

8. Prioritize spaces for mental wellness.

The pandemic has brought about the era of remote working set-up and that will surely stay. Ensure that you create a sense of separation between your work and life by allotting special spaces for quiet moments where you can prioritize your mental health. This doesn't require you to turn a room into a yoga studio or a sauna. Having a designated corner or station for reading, meditating, or art work will help you restore your energy for a more productive day. 

9. Implement screen-free zones or time.

Being hyperconnected to our gadgets and the Internet takes a toll on our mental health. Establishing places in the house where gadgets are not allowed sets healthy boundaries for our minds. Scheduling a no-gadget hour also aids in decompressing our minds. Instead of doom scrolling allotting space and time for crafts, reading, journaling or family time will surely make a home a sanctuary.

Every room in your home matters. Create harmony in your home by making each nook and cranny an energy-boosting, calm-inducing room through these mindful design practices.