Dimalaluan, Trisha Andrei P.
BSBA-FM 2-3
Personal Finance
Activity 6
Does your family own or rent the house you’re staying in now?
What and how much are the costs incurred by your family for
owning/renting the house?
- No, the house we are living in is not now ours. Rather, we are tenants
and pay Php3,500 in rent each month along with other living expenses.
This amount specifically covers the basic accommodation, while
additional costs such as utilities are separate and are handled
independently as outlined in our rental agreement.
Compare the features of a car loan and a housing loan of 2 banks. Which will
you prefer and why?
BPI
CAR LOAN
Key BPI Car Loan Features
➢ Vehicle type: Brand-new and second-hand cars for personal or business
use
➢ Maximum car age: Up to 10 years old
➢ Minimum monthly household income: ₱30,000
➢ Loan amount: Minimum of ₱200,000
➢ Down payment: 15% to 70%
➢ Effective interest rate:
▪ Brand-new cars: 9.87% to 11.18%
▪ Secondhand cars: 14.26% to 15.50%
➢ Repayment terms: 12 to 60 months
➢ Auto Loan Step Up Pay Plan: This option allows you to pay lower
amortizations in the first two years than you would with a regular BPI auto
loan. Amortizations gradually increase in the succeeding years.
➢ Zero Cash Out: BPI lets you own a car without any down payment.
Instead of the usual cash out to pay the down payment, just use your
deposit savings as a holdout. It will also serve as your car’s down
payment.
➢ Multi-Year Protect: The BPI Multi-Year Protect offers full insurance
coverage for your car with zero hassle and no upfront cash out. You can
get an insurance policy for the entire auto loan term and pay in monthly
installments.
Security Bank
Key Security Bank Car Loan Features
➢ Vehicle type: Brand-new and secondhand cars for personal use / Brandnew cars for business use
➢ Maximum car age: Up to 11 years old
➢ Minimum monthly household income:
▪ Brand-new: ₱40,000
▪ Secondhand: ₱20,000
▪ Loan amount:
▪ Brand-new: Minimum of ₱400,000 up to 80% of the purchase price
▪ Secondhand: Minimum of ₱100,000 up to 70% of the appraised
value
➢ Down payment: 20% to 50%
➢ Interest rate:
▪ Standard: 6.77% to 37.63%
▪ With one-month advance: 6.02% to 36.38%
➢ Repayment terms:
▪ Brand-new: 12 to 60 months
▪ Secondhand: 12 to 48 months
➢ Approval time: Within one banking day
➢ Following an extensive comparison of BPI's and Security Bank's car loan
services, I prefer BPI. General financial preferences are well-suited to BPI's
competitive interest rates, flexible down payment options (from 15% to 70%),
and accommodating payback lengths (up to 60 months). More flexibility and
convenience are offered by the extra options, which include the Car Loan Step
Up Pay Plan and the choice for a Zero Cash Out utilizing deposit savings. The
car loan is further secured by BPI's Multi-Year Protect, which provides complete
insurance coverage without requiring an upfront pay out. BPI is my first choice
for a car loan because of its all-inclusive package and customer-friendly
features, which perfectly match most people's needs and financial objectives.
RCBC
HOUSING LOAN
RCBC Home Loan Features
➢ Minimum loan amount: ₱300,000
➢ Interest rate: 6.88% to 11% depending on the term
➢ Loan term: Up to 20 years
➢ Fixing option of one to 20 years
➢ Can be used for the purchase of a house and lot, vacant lot, and home
renovation
➢ Can also serve as a multi-purpose loan or for home loan refinancing
RCBC Home Loan Requirements
➢ Accomplished RCBC Home Loan application form
➢ Copy of Transfer Certificate of Title (TCT) and Tax Declaration (Land and
Improvement)
➢ Bill of Materials (Construction)
➢ Documents for employed applicants:
▪ Certificate of Employment
▪ Latest Income Tax Return (ITR)
▪ Two government-issued IDs
▪ Tax Identification Number (TIN)
▪ Utility bill
➢ Documents for self-employed applicants:
▪ DTI Business Registration Certificate
▪ Audited financial statements
▪ Income Tax Return
▪ Bank statements
UnionBank
UnionBank Home Loan Features
➢ Minimum loan amount: ₱500,000
➢ Maximum loan amount: 90% of the property’s appraised value
➢ Interest rates: 6% to 11%
➢ Loan term: One to 20 years
➢ Allows 10% to 99% down payment
➢ Can be used for the purchase of a lot, house and lot, or condominium,
house construction, refinancing, or home renovation
➢ Quick approval time
UnionBank Home Loan Requirements
➢ Accomplished Unionbank Home Loan application form
➢ Valid ID (SSS/GSIS/TIN ID)
➢ Marriage contract (if married)
➢ Latest income documents for employed applicants:
▪ Certificate of Employment with salary details
▪ Pay slips for the last three months
➢ Latest income documents for self-employed applicants:
▪ DTI or SEC Business Registration Certificate
▪ Financial statements
▪ Bank statements for the last six months
▪ ITR
▪ List of customers or suppliers with contact information
➢ Additional documents for OFWs:
▪ Valid passport with entry and exit stamps
▪ Original consularized Special Power of Attorney
➢ UnionBank is the better option after a careful comparison of RCBC's and
UnionBank's housing loan offerings. The 10% to 99% down payment range
offered by UnionBank is flexible enough to accommodate most people's
financial needs, which is in line with my personal financial preferences. For
me, the quick approval time that UnionBank mentioned is essential in
guaranteeing that my loan application will be processed in a timely manner.
Furthermore, UnionBank offers a wide range of usage alternatives that
provide me the flexibility I need in a home loan, including building,
renovation, refinancing, and property acquisition. UnionBank is the go-to
option for a housing loan because of its comprehensive perks and features,
even though its minimum loan amount is greater at ₱500,000. This reflects
the bank's customer-focused and comprehensive financing approach.