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Housing Loan

The program is open to Filipinos and non-Filipinos residing and working in Japan who are interested in purchasing residential real estate in the Philippines.

Loan purposes that fall under the OWN A PHILIPPINE HOME LOAN PROGRAM are:

• Purchase of residential lot, house and lot, condominium unit, townhouse, rowhouse;
• Purchase and/or construction of apartment building of up to 4 units only;
• Improvement/renovation on existing residential property/ies;
• Construction of residential unit/s on a lot presently owned by the borrower;
• Take-out of existing housing loan; provided, account is in current status; and
• Refinancing of existing residential unit, provided said property has been acquired by the borrower one year or less from date of application.

Manner of releases are as follows:

• For project involving acquisition, the loan proceeds shall be released in lump sum payable to the seller/developer;
• For project involving house construction and improvements/renovation, loan releases shall be on a staggered basis, depending on the progress of the project, payable to the owner or designated financial manager;
• For refinancing of existing loan, the loan proceeds shall be released directly to the financial institution.

Proceeds of the loan shall be released in Philippine Pesos (converted at the Bank's prevailing buying rate for telegraphic transfers on the day of release of the loan) directly to the former owner/seller of the property.

The loan will be secured using a Real Estate Mortgage (REM) over the property to be financed that will be annotated on the title. Real estate properties other than the property to be financed are also acceptable as additional collateral.

WHO CAN BORROW
Filipinos in Japan with working, long-term, permanent residence, during mission, Investors/Business managers, designated activities visas and who are gainfully employed:

• Filipino spouses for Japanese and other nationalities, (Spouses should both be the borrowers);
• Natural-born Filipinos residing and working in Japan who have lost their Filipino citizenship (limited to a maximum lot area of 1,000 square meters);
• Foreigners/non-Filipinos (limited to the acquisition of condominium units)
• Acquisition of up to four (4) residential units may be allowed provided:
1. the client is not engaged in the real estate/leasing business and the repayment shall not come from the rental income that may be earned from the residential units; and,
2. the aggregate area of the lot will not exceed the maximum allowed in case of former Filipinos.

HOW MUCH CAN YOU BORROW
*Minimum loan amount allowed is from PHP 500,000 for lots and PHP 1,000,000 for house & lot*

• For purchase of vacant residential lot, up to 60% of the appraised value;
• For purchase of residential house & lot, town house, raw house or condominium unit, up to 80% of the appraised value of the property;
• For house construction, up to 80% of the appraised value of the lot and the house to be constructed;
• For major house renovation/improvement, up to 80% of the appraised value of the house and lot PLUS 80% of the appraised value of the Bill of Materials of the house to be renovated;
• For refinancing/take-out, up to 80% of the property to be financed or the outstanding principal balance from the seller/developer, whichever is lower

REPAYMENT/PREPAYMENT TERMS
The loan will be paid in equal monthly amortization for a period of one (1) year to a maximum of seven (7) years. For longer term, please consult us.

Payment commences one month after full loan release. The borrower will be required to open a Yen account maintained at PNB Tokyo Branch. Monthly amortization will be automatically deducted from the client's respective PNB Account on their due dates.

The loan may be prepaid in full or in part subject to a prepayment fee of one percent (1%) of the amount of prepayment. Written notice must be furnished the Bank at least 10 days prior to the intended date of repayment.

STEPS OF APPLICATION

1. Send a completed application package to PNB Tokyo together with supporting documents and fees
   

   Housing Loan Checklist of Requirements: APPLICANT Accomplished Loan Application One passport size picture (Husband & Wife) Copy of Passport & Visa Copy of Alien Registration (Non-Japanese) Copy of Driver's License (Japanese) ORIGINAL copy of Certificate of Employment indicating date of commencement of employment and present salary. If self-employed business registration certificate. Copy of Income Tax returns for the past two years. If self-employed copy of Audited Financial Statements Copy of Payroll Slips (latest 3 months) Copy of Marriage Certificate (Koseki Tohon) Copy of Residence Certificate (Jyumin-Hyo) Copy of Bank Statement or Passbook Copy of any utility bills in Japan (such as NTT, Tokyo Gas, Water & Electric) JPY 25,000 application fee (non-refundable) TO BE PRODUCED BY SELLER/DEVELOPER Copy of Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) Copy of Tax Declaration, Realty Tax Receipt, & Tax Clearance Lot Plan Certified by the Geodetic Engineer Location and Vicinity Map For Purchase of property: Copy of Purchase Agreement or Reservation Agreement or Contract to Sell with updated Statement of Account. For house construction and improvements: Building plan specifications duly signed by a Civil Engineer or Architect Bill of Materials or Construction Cost Estimate duly certified by a Civil Engineer or Architect; and Duly approved building remodeling or building permit from City Engineers Office.

2. Upon receipt, a formal appraisal and credit investigation report will be requested from PNB Head Office and PNB Tokyo will evaluate the credit worthiness of the loan applicant. Analysis will be conducted in accordance to existing credit standards, taking into particular consideration the applicant's character, capacity to pay and stability of residence/employment.
3. The approval/denial process will take approximately three weeks from the time PNB receives all required documents and will be contingent upon receipt of acceptable appraisal figures on the proposed real property. This decision will be conveyed to the applicant in writing.
4. Upon final approval, legal documentation will be prepared. Loan related documents will be signed by the borrower in Japan and execution of a “Special Power of Attorney”, appointing an “Attorney-in–Fact” in the Philippines in case the borrower cannot sign the Real Estate Mortgage (REM) in the Philippines. Both will require authentication by the Philippine Embassy. In case of foreigners, all loan documents shall pass through their respective Consular Offices/Embassies for authentication; the Philippine Embassy shall then authenticate these documents. For Japanese Nationals, the loan documents should first be notarized by a Japanese Notary Public, secondly, authenticated by the Gaimusho, and finally, authenticated by the Philippine Embassy.
5. At this point, the bank will require life insurance coverage should the borrower apply for a loan to purchase a lot. On the other hand, if the borrower applies for a loan to purchase a house and lot, the bank requires both life insurance and fire insurance coverage, in the amount of the loan, naming the bank as beneficiary.
6. Upon receipt by PNB Head Office of the original copy of TCT/CCT under the name of the borrower, Free and Clean from any liens and encumbrances and other pertinent documents from the seller/developer and all signed documents, the registration of the real-estate mortgage (REM) to the concerned Registry of Deeds will be done, and loan proceeds are released to the owner/seller immediately after the annotation of REM. Original Transfer/Condominium Certificate of Titles (TCT/CCT) are kept at PNB Head Office for safekeeping and copies forwarded to PNB Tokyo for the branch and borrower's files.

The entire process, including appraisal, filing, perfection of documents and loan release is expected to take approximately three (3) months or more. It all depends on the completeness of the documents and the swiftness of the seller/developer to transfer the ownership of the title to the borrower's name upon receipt of the letter of guarantee from the Bank. The loan is only available for 180 days or 6 months period from the date of approval. More than this, the bank needs to revalidate the account and client/borrower should submit selective updated pertinent documents.

1% of the Yen loan equivalent or JPY 25,000 (whichever is higher) will be charged as arrangement fee at the time the loan is released.

Thereafter, schedule of amortization/repayments will be sent to the borrower right after the final release of the loan.

LOAN RELATED EXPENSES LIST

PAST DUES AND LATE PAYMENTS
All late payments shall be subject to a late payment charge equal to 18% of the late amortization.

The Bank will attempt to collect 18% (per annum) on delinquencies for a maximum of ninety (90) days during which a sequence of demand letters will be sent to the borrower. If no attempt is made by the borrower to contact the Bank and settle outstanding obligations, on the 90th day, the Bank will be forced to proceed with the immediate foreclosure on the property will be implemented.

Surcharge Penalty- In the event of default or delayed payment for the monthly amortization for whatever reason. PNB Tokyo Branch shall collect a surcharge penalty of 2% of the delayed payment due on top of the current penalties charged.