For many Filipinos, acquiring a property through assumed balance (pasalo) offers a cost-effective and convenient way to own a home. However, it’s crucial to work with financing institutions that recognize and support this arrangement. Not all lenders allow the transfer of loans or balances, so knowing your options is key to ensuring a smooth transaction.
This article provides a comprehensive list of financing institution in the Philippines that accept pasalo and offers insights into how the process works.
What Is Pasalo Financing?
Pasalo financing refers to the assumption of a remaining loan balance by a new borrower. This setup is common in real estate, where the original owner transfers the loan obligation to a buyer, who then continues the monthly payments. Approval from the financing institution is often required to ensure a legal and hassle-free transaction.
Top Financing Institutions That Accept Pasalo
1. Pag-IBIG Fund
- Why Choose Pag-IBIG?
Pag-IBIG housing loans are popular due to their low-interest rates and flexible terms. The fund allows borrowers to transfer their loan to another individual, provided all requirements are met. - Requirements for Pasalo:
- Updated loan payments
- A deed of assignment or transfer
- Approval from Pag-IBIG
- Process: Submit the necessary documents, and the new borrower must qualify for Pag-IBIG’s loan terms.
2. Bank Financing
Several banks in the Philippines allow pasalo arrangements for home loans, provided the new borrower meets their credit and financial criteria.
- Examples of Banks That Accept Pasalo:
- BDO Unibank: Offers loan transfer options with a thorough evaluation of the new borrower’s financial capacity.
- BPI Family Savings Bank: Allows loan assumptions but requires detailed documentation and credit evaluation.
- Metrobank: Supports pasalo transfers for home loans, subject to approval.
- General Requirements:
- Updated loan payments from the original borrower
- A credit evaluation for the new borrower
- Proper documentation, including a deed of assignment
3. In-House Financing
- What Is It?
Developers offering in-house financing may allow the transfer of obligations to a new buyer. This is particularly common for properties still under installment plans. - Key Developers Offering Pasalo Options:
- SM Development Corporation (SMDC)
- Ayala Land Inc.
- Megaworld Corporation
- Advantages:
- Faster approval process
- Less stringent requirements compared to banks
- Flexibility in negotiations
4. Private Lending Institutions
Private lenders or financing companies also accommodate pasalo agreements, often with more flexible terms but higher interest rates. These are ideal for buyers who may not qualify for bank loans.
- Examples:
- Cebuana Lhuillier Home Loans
- Radiowealth Finance Corporation (RFC)
- Considerations:
- Higher interest rates
- Shorter loan terms
Steps to Secure Pasalo Financing
- Verify the Seller’s Loan Status:
Ensure the seller’s loan payments are up-to-date to avoid inheriting unpaid dues or penalties. - Get Approval from the Lender:
Contact the financing institution to confirm that they allow pasalo and to understand their requirements. - Prepare Documentation:
Required documents typically include:- Deed of assignment or transfer
- Proof of identity and income for the new borrower
- Loan balance statement
- Complete the Transfer:
Once all requirements are submitted and approved, finalize the transfer with the lender or developer.
Tips for Choosing the Right Financing Institution
- Compare Interest Rates: Look for competitive rates to reduce your overall cost.
- Check Terms and Conditions: Ensure the lender allows pasalo and review their requirements.
- Evaluate Customer Support: Opt for institutions with a strong reputation for transparency and assistance.
Conclusion
Choosing the right financing institution for a pasalo transaction is critical to a smooth and hassle-free process. Whether you opt for Pag-IBIG, bank financing, in-house options, or private lenders, understanding the requirements and steps involved will help you make informed decisions.
Looking for your dream home? Let Hanap Bahay guide you through the pasalo process with expert advice and assistance!
Learn how Pasalo agreements impact both financial statements and legal requirements with our in-depth guides: Concept of Pasalo in Financial Statements and Legality of Pasalo Transactions.
