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

The interest rate is the prevailing JPY Long Term Prime Rate set by the Bank, based on the rate quoted by Mizuho Corporate Bank's current rate plus 5% subject to resetting every anniversary date. (Rates are subject to change without prior notice )

Manner of releases

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 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

HOW MUCH CAN YOU BORROW

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 repayment.

STEPS OF APPLICATION

1. Send a completed application package
2. Appraisal
3. The approval/denial process
4. Documentation
5. Registration of the real-estate mortgage REM document

The entire process, including appraisal, filing, perfection of documents and loan release is expected to take approximately two (2) to three (3) months. 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.

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 release of the loan.

TIME CHART

LOAN RELATED EXPENSES LIST

PAST DUES AND LATE PAYMENTS

FREQUENTLY ASKED QUESTIONS (FAQ)

Q. If I already purchased a house and lot and am currently paying a Philippine Peso mortgage in the Philippines , can I still avail of the “Own a Philippine Home Loan?”

Q. I bought a lot when I was still single. I am now married and want to build a house on that lot. Can I apply for a loan without informing my husband?

Q. I am Filipino but my spouse is a foreigner. Are we eligible to purchase property with your loan program?

Q. If I am a temporary worker in Japan with proper visa, can I purchase property under your program?

Q. If I am a former Filipino and have now become a Citizen of another country (e.g. Japan ), what kind of property may I purchase under your program?

Q. May I borrow to pay for the 30% down payment on the property?

Q. How long will PNB Tokyo process my loan application after submission?

ADVANTAGES OF BEING IN THE OWN A PHILIPPINE HOME LOAN PROGRAM ARE:

CONTACT PERSONS:

Pex Aguilar – 03-5401-3300 or email

Carol Tokunaga – 03-5401-3398 or email

FORMS AVAILABLE FOR DOWNLOAD

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 . Borrowers may avail of only one loan under the program.

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

•  Acquisition of a residential lot, house & lot, townhouse, raw house and condominium unit located in Metro Manila and key cities in the Philippines ;

•  House construction or major renovation/improvements of a house located in Metro Manila and key cities in the Philippines ;

•  Refinancing/take-out of loan from other financial institutions in the Philippines of properties located in Metro Manila and other key cities of the country.

The interest rate is the prevailing JPY Long Term Prime Rate set by the Bank, based on the rate quoted by Mizuho Corporate Bank's current rate plus 5% subject to resetting every anniversary date. ( Rates are subject to change without prior notice )

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 an 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)

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 two (2) to three (3) months. 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.

TIME CHART

Time Frame

LOAN RELATED EXPENSES LIST

PNB TOKYO BRANCH HOME SWEET LOAN PROGRAM

ESTIMATED DOCUMENTARY EXPENSES

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.

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FREQUENTLY ASKED QUESTIONS (FAQ)

Q. If I already purchased a house and lot and am currently paying a Philippine Peso mortgage in the Philippines , can I still avail of the “Own a Philippine Home Loan?”

A. Yes, provided you are working in Japan with proper VISA. PNB's “Own a Philippine Home” Loan is designed to help you refinance your existing Peso mortgages. Refinancing through PNB's program will usually result in a lower interest rate and lower monthly installments.

Q. I bought a lot when I was still single. I am now married and want to build a house on that lot. Can I apply for a loan without informing my husband?

A. No, both spouses should be the borrowers and not just one or the other, regardless of whose name the lot and house to be constructed will be under.

Q. I am Filipino but my spouse is a foreigner. Are we eligible to purchase property with your loan program?

A. Yes, However, under Section 7, Article XII of the Philippine Constitution, foreigners may not acquire private land. Therefore, title to the property will be in the name of the Filipino spouse but both Filipino and foreigner spouses must sign the loan.

Q. If I am a temporary worker in Japan with proper VISA, can I purchase property under your program?

A. The answer to this shall be determined on a case-to-case basis, depending on the prospective stability of Japan employment, the current and future assets of the borrower and other factors. In general, this program was created for those Filipinos and foreigners who have valid working visas and wish to buy Philippine real estate. It is this stable stream of future income, which the bank looks into as primary source of repayment of the loan.

Q. If I am a former Filipino and have now become a Citizen of another country (e.g. Japan ), what kind of property may I purchase under your program?

A. As a former Filipino citizen, you are entitled to purchase private real estate (i.e. house and lot) up to a maximum area of 1,000 square meters. Foreigners are entitled only to purchase condominium properties wherein the Condominium Corporation owns common areas.

Q. May I borrow to pay for the 30% down payment on the property?

A. No, the 30% down payment should be out of the pocket expenses and responsibility of the buyer. The bank shall finance 80% of the appraised value of the collateral property which should not go below PHP500,000 for lot only and PHP1,000,000 for house & lot project.

Q. How long will PNB Tokyo process my loan application after submission?

A. If all requirements are satisfied specially the transfer of title by the developer/owner to the borrower, it would take only three (3) months.

ADVANTAGES OF BEING IN THE OWN A PHILIPPINE HOME LOAN PROGRAM ARE:

1. PNB Tokyo branch are able to check and validate with the Registry of deeds and other government offices the status and appraisal value of your property in the Philippines .
2. PNB Tokyo branch will require the seller/developer to transfer the ownership of your title prior to the release of loan.
3. PNB Tokyo branch offers lower interest rates. (Click here for current interest rate)
4. There is no need for you to remit your payment to the Philippines for the monthly amortization because your payments will be made to PNB Tokyo directly. Thus, eliminating additional expenses such as remittance charges.

All documents and requirements can be submitted by mail. Please feel free to contact us or e-mail us

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