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Dear Feyma “Can I get a loan in the Philippines?”

Money Matters / by

I always get emails inquiring about getting a loan for financing here in the Philippines. Here’s one of the emails I got.

 I want to buy a house that we really want and can afford the down payment. The monthly payment if there’s a financing we can afford it right now but not the downpayment if the house is between 3.5 or more. I really appreciate your time and effort in assisting me.

I emailed my friend who is a Vice President of Asia United Bank, he is based in General Santos.

Here’s my email to him.

Hi Orms,

Hello there! Kumusta!

I had lots of email from foreigners inquiring about how they can get a loan from the bank here in the Philippines? I have been telling them before that they (foreigners) can’t get a loan from the bank here. I’ve been flooded with emails from them that Bob told me to really inquire from a banker regarding this matter. I am not an expert and have doubts on what to say to them.

So here’s my questions: 

1) Can a foreigner get a loan from the bank here?

2) Can the girlfriend or wife co-sign?

3)  What bank that allows loan to foreigners?

I have my latest inquiry. He is moving here next year and he wants to buy land in Samal, a farm. He wants to borrow some money in the bank to pay for some of it. I told him to borrow from the bank in his country. But he wants it here, he has a girlfriend a local from Davao. Don’t really know what to tell him that much. Thanks… Feyma

Here’s his reply:

mare,

As a general rule, foreigners are not eligible to apply for a loan in Philippine bank.  Some banks allow car loans but the foreigner must be married to a Filipino.

hope this helps,

pare orms
So it shows that foreigners can’t get a loan here. If they can it would be so limited just for a car loan. With that, if the foreigner had a wife, and the wife will apply for the loan still it is not for sure if they can borrow money or not in the bank.   I forgot to ask my friend if an OFW can easily get a loan here? Hmm, something for me to blog about it next time.
One thing you can do if you want to get a place like a house to buy and you had not much money. If you know the owner personally, you can get some payment arrangement with the owner of the house or any property. As long as they don’t need the cash right away and they can wait for you to pay the property in an installment plan, that thing works out here too. I’ve heard of some people talking about renting to own plan.I know some land owners in Samal give payment options. Maybe make an arrangement like that. Since we all know now that any foreigners can’t get any loan from the bank.
Just like a lot of the land owners that has big land and farms here. They will sell their land in an installment basis. You will just have to put a required down payment which mostly said 20%-50%. Then the rest you can pay monthly maybe in a few years time. Depending on you guys agreement. Some owners if the down payment were quite high they will make the payment split into few months  and agreeable with the owner. A lot of the land owners that I encounter were really easy to talked to.
I was so thankful to my friend that he  answered back quickly. I know that he is a busy man, but he took sometime to reply to my query. Thank you Kumpareng Orman.
Cheers!

Reader Interactions

Comments

  1. Hey Feyma,

    I don’t think this is correct. I am a Brit, married to a Filipina and I have a house loan, with me as the principal borrower and my wife is the co-maker (she has no income other than from me). I have the 13a permanent visa and a regular paid job in the Philippines. Both BDO and Metrobank both approved the loan application. Our land title is in my wife’s name, but written as ‘My wife, married to, my name’

    Both BDO and Metrobank told me they would loan to a foreign national as long as they were/had:
    – permanent resident. the ACR card should state ‘IMMIGRANT’
    – 2 years of tax returns on local income
    – maximum loan term of 10 years
    – name on house/car title/deed as ‘married to’

    I have clarified with BDO 3 times now that I am indeed the principal on the loan. All documents are addressed to me. I also do not have any special connections with the banks, or huge amounts of savings in that bank. I have a normal salaried job and I got the loan by walking into a branch, sitting at the customer service desk and filing out the forms.

    I was rejected by BPI, Landbank, PSbank and Unionbank as they all said foreigners could not get a loan here.

    • I am exactly the same as you. I am an Australian citizen and a permanent resident of the philippines, have 5 properties with both my wife and my name on the titles. I have BDO peso bank accounts and a BDO mastercard solely in my name, with my wife as a subsiduary card holder. I currently have my second BDO home loan (previous one I have already paid out).
      I guess most bankers answers assume the asking is not a resident, in which case they are tourists, and have no rights at all in the philippines.
      Cheers,
      Lance

      • You are correct. foreigners in the Philippines have no rights, but they sure love it when we spsend our money here!

  2. Hi steven – Hmm… I will talk to my friend (Orman) about that. He knows a lot about the bank stuff than me. Been talking to some friends who were married to foreigners and were a citizen of the country their husband’s from and they can’t borrow money from the bank in here too.

    Thank you for letting me know, at least we know maybe a good options to someone wanted to retire here.

    Good to see you here and thank you for your comment.

  3. Feyma:

    I believe that as with many things related to banks, it largely depends on the bank manager and how well you can document your income and credit-worthiness. Remember, without credit bureaus here, the bank is basing its’ decision on your establishment of a relationship. At Metrobank, we have a very good relationship with the manager there. Started with a savings account. Then checking. Then credit cards. The manager there told me that he bases the decision on the total banking relationship. For example, if you have a credit card and auto loan from them, a post paid mobile account with a large plan, store credit cards, and documentable income, then as a foreigner married to a Filipino, he would issue a mortgage if all payments were on time and that I could prove it.

    What I was told we would need to qualify:

    A 13a visa, with continuous residence over 2 years.

    Long term apartment leases with a reference from our landlord.

    Bank statements from foreign and Filipino banks.

    A current employment contract, along with a reference from my employer.

    Credit card statements, preferably Filipino, extra preferably from Metrobank.

    A paid-off car loan, according to terms, from Metrobank would make a mortgage much easier

    A TIN number

    Tax returns, both foreign and Filipino

    Post paid mobile with credit limit of at least 25K

    REFERENCES from other bank customers (I was told this is MOST important)

    Car loans are easier, since the loan is collateralized by the vehicle (You dont pay, then they repo). I was told that a long established relationship with the bank, with gradually increasing credit is the primasry factor. The lack of credit bureaus here really is a double-edged sword… It can make it both easier and more difficult to get loans here at the same time.

    Also remember that since foreigners cannot own land here, giving a foreigner a mortgage to buy / build a house could leave the bank holding the bag in event of default (Since the foreigner cannot acquire title to the land). Financing a condo should be much easier.

    • Hi John – Hmm, something for our readers to look into now. I’ve been hearing that you can’t get loan here ever since coming here. See we’ve been living here for almost 12 years now, Bob & I never tried going to the bank to borrow for anything yet. We purchased our vehicle before and we paid in cash. We bought land and we paid in few months time with an agreement from the land owner. Thank God it’s been paid and we have the title already to our name.

      I will ask more other banks and see if they will allow loans to foreigners especially here in the province. As you know any loans will be approve by the head office guy in Manila. You got me thinking here, I will really try to go and see another friend of mine who works in a different bank, I will ask her if her bank loan money to foreigners and i will let everybody know here.

      Thank you John for the good insight. Highly appreciated.

      Have a good weekend!

  4. Feyma,
    Ive’d got a cousin who are married to german national, her husband is a seaman working as a chief engineer and ive’d learned that they borrowed money from the bank to build their house in Cavite city, i think their monthly amortizaton is 50k i just don’t know the name of the bank.

    • Hi Rebecca – Thank you for letting us know here. I will try look into more on this. I will ask more banks here if they will loan to foreigners. Not sure if living in the province has to do with it. But it should not though, will see. Since in any application here it’s always approve by the Manila office guy.

      I will update here after I have a talk with other banks. Thank you for stopping by.

      Good to see you here again and thank you for the comment!

  5. Hi Feyma,

    Regarding your question if OFWs can have a loan from a local bank, the answer is yes but it really depends on what marketing strategy the bank is doing. Last year, I asked PNB ( I have a PH and Dollar accounts with them) if I can make a cash loan but they declined citing they don’t have that scheme yet for OFWs so I went to BDO and wallah they approved it with no problems.Same with credit cards, most OFWs are considered high risk so they won’t usually allow it but if you have a good relationship with your bank and in good standing they would probably allow it.

  6. hi feyma, my father is trying to buy a car for my husband and i in the philippines and have my husband buy the car in his name. i am currently unemployed and is studying in the philippines while my husband is earning only 18k per month. i am a u.s citizen, (still pending dual citizen), while my husband is filipino. would he be able to buy a car with a cosigner (preferably my father) residing in the u.s.?

    • Hi anne – Honestly just let your husband and your father go to the bank and try to inquire of what you want. Not sure if they will give you loan. Some people from the previous post had some good advice and comments. Try out going to BDO, I think they are more flexible than the other banks.

      Good luck to you and your husband! Thank you so much for writing.

  7. I am in the process of purchasing a condo with SM. I am about to complete my 10% deposit over 18 months. I was assured that there would not be a problem getting bank finance thru BDO.
    Now BDO tell me they will only loan me 50%. ( i need 90% ). My finance records clearly show i can afford. I also already own 1 condo that is rented ( colateral).
    Because i am a foreigner ( kiwi ) not living in the philippines they wont loan. My partner 5 years is Philippino . We are not married ( de-facto ).
    I am about to lose $10,000.00 if i cant get the loan.
    Can i sue SM. They mislead me. Broker only concerned with commisson.

    cheers

    Mike

  8. Good day
    I buy a lot and would like to do a mortage to be protected can i do this and give me more informations :
    as a foreigner, like to buy a property but are afraid about what the future will give, any bank in the Philippines can help you out.
    No hocus pocus, no breaking the law, just simple fair economics.
    Just buy the property of your choice in name of your wife and get it mortgaged in the bank.
    The capital of the mortgage is invested again in the same bank -in your name-and you only will pay the difference in interest from what you receive and what you have to pay.
    Since this is a zero operation for the bank you can negotiate a very good deal.
    You also can add to the contract that the mortgage-capital will go to your wife in case you will die first.
    The tittle remains in the bank as it is mortgaged and your wife or the family can not sell a property without tittle.
    Just ask the bank of your choice and they can inform you about this very safe and legal deal.

  9. I am a foreigner married to a Filipina. We both are ‘young’ 60+ and we both are retired on a UK pension each.
    Our pensions are for more secure and are even higher than most people’s work income in the Philippines, yet we are discriminated against by banks.
    If Bank’s did that against Filipinas in the UK they would be hauled over the coals by the authorities.
    Maybe this needs addressing by the Philippine Government.

  10. very hard to get a loan or credit card in the Philippines, even a foreigner working, paying taxes, we do not have any advantage here, its a shame for this country, the consider foreigners as rich people who must come with money. But Filipino abroad are well treated without any discrimination,

  11. An opposite question.
    I want to purchase a lot for my girlfriend with the title in her name and myself as irrevocable power of attorney to handle all lot related transactions.
    I would like to buy the lot cash but loaned to my girlfriend and hold a mortgage on the lot in my favor.

    As a foreigner, u.s. citizen living here on tourist visa (ACR )Tourist, am i able to do this?

    As a side question, if i wanted to lease back the land from her for a 25 plus 25 year lease, is that allowed under the law.

    thanks

  12. Hello everyone!

    I’ve been reading all the comments here regarding the bank loans and I am curious about something:
    Here are my questions:
    1. My husband ( foreigner ) wants to retire this year probably end of March or early April to the Philippines, and kind of wondering if we can loan in a bank for housing?
    2. We are married and I am a filipina, we are planning of buying a house and lot when we get there soon, so , is it possible for us to loan in a bank?
    3. What requirements and the process that we need to go thru?

    Thank you and have a wonderful day to all 🙂

  13. Im living in tarlac area ive been livin with my fiance for 6 months she works . But my pensions are the main income I wouk like to build a house here with the help of the bank .. home loan .. my fiance has a plot deeds and all . Woukd we qualify for a loan .I know I cant own property but could e together if not whats the next best eay to go yours jsmes imrie

    • Hi Jim, when you say ‘pension’ i suspect you are over 60. If you are, then banks here would not lend you money. If you are under 60 you may be able to get some loan, you would have to apply and see what they say.

  14. I was still an OFW in Dubai last year when I started paying for the equity of a condo unit from SM. However last February 2014, My family and I Landed as permanent residents in Canada. My question is can I still apply for a housing loan in any banking institution or pag -ibig fund? I am still a Philippine passport holder and not a citizen yet.

    The condo will be turned over to me by Q2 of 2016. I wanted to look for options as I still don’t have the money to pay it in cash.

    Anyone who can enlighten me?

    Have a good day.

    • Bernadette,

      What was your result? I am in the same boat, and my condo unit will turn over in 1QTR, 2019. My final balloon payment is due this summer and I have not found any fellow American investors interested in joining me on this investment. After seeing the growth in Makati first-hand, I thought surely I could convince anyone to join in, but since my American friends have never seen it themselves and are all very conservative, I am left short. I have told my agent to list the unit for sale but I would much rather keep it long-term and enjoy the rental income on a mortgage-free property.

      -Brian

      • Brian. Message me through email. I have seen you post your dilemma on a couple blogs. What’s the issue? I’m also retired us army. I have been living here a long while.
        [email protected]

  15. Hey all. Im retired US Military married to a Filipina. Im 40 yo and we are planning to move to Rizal. I found a good lot there but to build something we will need a loan. I have life time pension and can afford the down Payment. Havent lived there for a year or so I dont know about immigration requirements to get a loan.. Also the banking relationships I suppose I should start right away if need be. Can other comakers make the difference if they are citizens? My Father in law is a retired police chief there and he is more than willing to help us anyway he can. He is 60. Should I just try to get a high interest american personal loan for 20k before I go and build it myself?? Do I even have a chance to get a loan? I thought it was cool cuz we are married but I guess there is other crap at work here like well just discrimination and racism. For such a warm people this is very ugly.

    • Tony,
      I have had the same negative experience with the banks. I have equity in a condo unit due for turn over in 1QTR, 2019. My final balloon payment is due this summer and I have not found any fellow American investors interested in joining me on this investment. After seeing the growth in Makati first-hand, I thought surely I could convince anyone to join in, but since my American friends have never seen it themselves and are all very conservative, I am left short. I have told my agent to list the unit for sale but I would much rather keep it long-term and enjoy the rental income on a mortgage-free property. Perhaps we could build a platform for American expats in the PI. Hit me up and we can discuss ideas. And for anyone else reading this thread, if this sounds like something you would be interested in, hit me up.
      Cheers!
      -Brian

    • your right, foreigners here have no rights as i have found out the hard way. I have been trying to get a loan from many banks here and they wont even return my emails. You might try a Bombai, which is a guy from another country living here in the philippines. we have a loan with one right now and have had no problems whatsoever.

  16. Hello. I’m receiving VA Compensation and I want to get a car loan here in Philippines. I’m Philippine-USA dual citizen. Please advice. Thanks.