Pasalo (Assumption of Mortgage)
A complete guide to “Pasalo” or Assumption of Mortgage in the Philippines. Learn the legal process for Pag-IBIG and bank loans and the huge risks of informal deals.
Financial & Loan Terms
Navigating the financial side of buying a home in the Philippines can be confusing. This glossary simplifies essential housing loan terms—from Amortization to MRI—used by local banks and Pag-IBIG. Understanding this vocabulary is the key to making a confident and informed purchase for your future home in Bulacan.
Diminishing Balance
A guide to the diminishing balance method used in Philippine housing loans. Learn how your interest is calculated by banks and Pag-IBIG, and how it saves you money.
Equity
A guide to understanding real estate equity in the Philippines. Learn what equity is, how you build it, and what it means when developers ask you to pay for “equity.”
Loanable Amount
A guide to understanding your housing loanable amount in the Philippines. Learn how Pag-IBIG and banks compute it and compare which loan is better for you.
Real Estate Mortgage (REM)
A Real Estate Mortgage (REM) is a loan agreement in the Philippines where a property is used as collateral to secure a housing loan from a lender like a bank or Pag-IBIG. It gives the lender the right to foreclose on the property in case of default.
Grace Period
This guide explains the legal grace period for real estate buyers in the Philippines under the Maceda Law. Learn how this crucial right gives you time to settle overdue amortizations and protects your property investment from immediate cancellation.
Mortgage Redemption Insurance (MRI)
This guide explains Mortgage Redemption Insurance (MRI), a mandatory life insurance for housing loan borrowers in the Philippines. Learn how MRI works with banks and Pag-IBIG to pay off your loan balance in case of death, protecting your family from debt.
Loan Proceeds
This guide explains what loan proceeds are in a Philippine housing loan context. Learn the step-by-step process of fund release, why it’s different from loan approval, and how to manage common deductions from banks or Pag-IBIG.
Mortgage
This guide explains what a mortgage (or housing loan) is in the context of Philippine real estate. Learn how the process works with banks and Pag-IBIG, why it’s crucial for your investment, and common misconceptions to avoid.
Letter of Guarantee (LOG)
A Letter of Guarantee (LOG) is a formal promise from a bank or Pag-IBIG to a developer that your home loan will be paid. This guide explains how the LOG works, why it’s vital for your property turnover, and common misconceptions to avoid.