Housing Loan: Application Fees

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Disclaimer: The sole purpose of publishing this here in this website is to show how housing loan application fees differ from five (5) banks that I and my friends currently have for the reference of this website’s readers. This is not to show which bank gives the best package. Rates and fees differ according to several factors. Rates and applicable fees revises from time to time. Please do your own diligence.


1. Philippine National Bank (PNB)

Loan Information:
Loan Started: February 2013
Loan amount: P1,047,516.70
Term of loan: 15 years
Rate: 6.75% (5-yr fixed interest)
MRI: P6,785 / year

Fees and charges:
Mortgage Registration Fee: P26,640
Processing Fee: P 3,000
Mortgage Redemption Insurance (MRI): P6,785
Fire Insurance: P5,067.27 (1st year premium only)
Notarial Fees: P3,100
 
Grand Total: P44,592.27


2. Bank of the Philippine Islands (BPI)

Loan Information:
Loan Started: February 2013
Loan amount: P1,404,000
Term of loan: 10 years
Rate: 8.00% (5-yr fixed interest)
[2015 update: BPI allowed my friend upon his request to bring the rate down to 7.5% even he is still in the fixing period.]

MRI: P2,021.76 / year (10-yr coverage is payable in 7 years only)

Fees and charges:
Registration & Annotation Fee: P16,329
Processing/Handling Fee: P 11,500
Notarial Fees: P1,000

Grand Total: P28,829.00


3. Rizal Commercial Banking Corporation (RCBC)

Loan Information:
Loan Started: August 2013
Loan amount: P2,163,638
Term of loan: 12 years
Rate: 6.88% (5-yr fixed interest)
MRI: P25,963.68 / year

Fees and charges:
Legal Research Fund: P 2,316 
Notarial Fee: P600
Real Estate Mortgage Fees: P10,956 
Doc Stamps Real Estate Mortgage: P4,347.28
Doc Stamps-Promissory Note: P10,818.19
Others: P2,000 (facilitation fees)
Fire insurance: P5,194.95 (1st year premium only)

Grand Total: P36,232.42


4. Robinsons Bank

Loan Information:
Loan started: August 2013
Loan amount: P1,000,000
Term of loan: 5 years
Rate: 6.88%
MRI: P5,000 / year

Real Estate Mortgage
Entry fee: P90
Legal Research Fund: P 57.36
Registration Fee: P5,646
Documentary Stamps: P2,010
Notarial Fee: P250
Computer Fee: P2,000 (P400 x 5 years)
Special Power of Attorney: P200
CTC of TCT: P900 (P300 per title)
Others: P3,000
Sub-total: P14,153.36

Fees and charges:
Documentary Stamp on Promissory Note (PN): P5,000
Notarial Fee on PN: P250
Notarial Fee on Loan Agreement: P250
Mortgage Redemption Insurance (MRI): P5,000
Fire Insurance: P 2,537.23 (1st year premium only)
Appraisal: P3,500
Processing Fee: P3,500
Sub-total: P20,037.23

Grand Total: P34,190.59


5. Banco De Oro (BDO)

Loan Information:
Loan Started: October 2014
Loan amount: P1,499,653.65
Term of loan: 15 years
Rate: 6.50% (5-yr fixed interest)
MRI: P7,223.35 / year (diminishing)

Fees and charges:
Documentary Stamps: P10,509
Handling Fee: P 5,000
Notarial Fees: P1,300
Registration Fee: P19,946
MRI: P7,223.35
Fire insurance: P2,861 (1st year premium only)

Grand Total: P46,839.35


Personal comments:
– BPI’s MRI premium was the cheapest
– Look at the MRI premium of RCBC, so expensive!
– BDO’s interest was the least for 5-yr fixing


Feel free also to share us what you know about housing loans by commenting below.


Applying for a housing loan soon? Here are some helpful resources:
Amortization Scheduler – Amortization Scheduler from Calculator Soup
Mortgage Calculator – Moneychimp Mortgage Calculator


Read also: Planning to buy a condo? Part 1 and Part 2


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35 Replies to “Housing Loan: Application Fees”

  1. Thanks Rex! This is helpful coz Im currently searching and companring which bank to apply my homeloan. I have searched BDO, BPI and ChinaBank. BDO’s int rate are so expensive compared to all the banks you mentioned above!

    1. Hi Rosy. Yes they vary from time to time. I showed you this because I believe there are people who are zero in knowledge with regards to application fees ang alam lang nila is housing loan and its interest. Banks make money from housing loans and they could create more if we don’t know about it.

  2. Thanks!

    I’m getting a home loan myself, in a couple of years. I’ll keep these fees and charges next time I shop around for a loan.

  3. Thank you for this. I just received an approval email of my on one bank and I am shocked of the amount of their processing charges. Luckily I saw this site that help me ease out any doubt on their computation.
    Thank you.

  4. Hi Rex,
    I just want to ask is it really mandated that the developer of the housing unit will be the one to choose for the MRI? What if I already have my own life insurance?

    1. Hi Lizly Ragas. Yes, MRI is mandated by banks who offer you loan. BUT, yes you may also offer you existing life insurance to cover MRI. It will still depend on the bank whether they will approve it or not. Ask the bank first before you apply loan from them.

    1. Hi Jay Sario. These are all “application” fees, upon loan application and you agree on terms babayaran mo talaga yan. But the following charges might have already changed by this time. Just ask the bank and learn to negotiate. Know your rights, know your numbers. Woot! Woot!

  5. Hi Rex,

    Just want to say thanks for compiling this. Too late for me as I already went ahead with PS Bank, but it seems there are other banks with lower charges. Not complaining with PS Bank’s interest rtaes though 🙂

    1. You’re welcome Ron. PSBank is also a good bank. It’s not only the “bank charges” plays as important factor(s) in loans but also banks’ customer service and ease of doing business. Some banks would require you a minimum in advance payment some banks don’t; some banks would require you to only pay in advance in every loan anniversary but some would allow you to pay in advance anytime; some would charge you if you pay in advance but some don’t. By the way, it is illegal if the bank charge you for paying in advance. When we say illegal you know that you can complain or even sue them. Great to know you’re in a good bank. Good luck Ron!

  6. Hi. Are amount to be paid to them prior to release of the amount loan? Can they just less the processing fees etc to the total loan amount? Thanks

    1. Hi Davidj. Upto the bank if they would agree. But if they do, you’ll lose more in paying interest since that amount is already included to “borrowed” amount that would incur interest. Measure your risks, understand and mitigate them. Financial literacy plays very big role especially in situations like this. Good luck David!

  7. Hi Rex

    Just want to ask if fire insurance is required to pay every year until the last year of the loan? we have 5year fix loan in BDO and now we are on second year and they are asking to pay the fire insurance. thanks

    1. Hi Edison.

      Banks require Fire Insurance (FI) until end of the loan term. Whether they would agree to waive that requirement anytime or in the last year it’s really upto them. I don’t know which bank currently waives FI but you can try to negotiate with your bank. What I’m sure some banks waive after negotiation is the Mortgage Redemption Insurance (MRI). Good luck!

  8. Whats The average processing time? how many days will it take to be approve..example..i completed the requirements today and passed it to the bank?

    tnx

    1. Hi Mohammad.

      Find an insurance company who can cover an MRI of P2M for a lower premium. Talk to insurance agents but find a good one or else you’ll get another headache. If you have an existing life insurance that has a coverage of P2M you may try to propose to use it to the bank as an alternative. Hope to hear from you again. Good luck!

  9. Need help.
    The bank will charge me 3% of my total loan for bank fee, is that reasonable? (Bank officer said it include everything)
    I’m loaning for quite huge amount.

    1. Hi Tang.

      What the bank asked you was quite huge. Just try another bank my friend and compare them. Just get who has the best offer. Hope to hear from you again.

  10. Hi Sir Rex,

    Good day may i ask if it is possible to merge the home loan and home renovation loan so we will pay only one application fees? We are planning to apply it to PSBANK.

    Many thanks…

    1. Hi Erick.

      I guess so.One of my friends tried have already tried that. But you can always try to talk to the bank first and ask. If one bank didn’t agree, just try another. You can negotiate to the manager if you have an account in that bank for many years already, they need your savings account anyway. Sana lang may laman ‘yung account mo. Goodluck! Hope to hear from you again.

  11. Hello po. Ask ko lang po. If pede mag apply ng housing loan sa banko kahit walang laman ang savings pero dun po ako nagpapadala ng remittance ko? Or pede din po bang mag apply ng housing loan sa ibang banko kahit mag apply pa lang akong baging kliente nila. Sa tips niyo po kasi sir mukhang malaki ang interest ng banko ko ngayon kaya im considering po other banks to apply housing loan

    1. Hi Mimi. Yes pwede kahit walang laman ang account mo in applying a loan, as long as meron ng laman kapag due date na ng loan kasi doon ike-credit sa account mo ng bangko ang amortization. Pwede ka rin mag-apply sa ibang bangko ng loan kahit new client ka nila. And yes, consider other banks for you to compare interest rates and fees. Mas ok siyempre kung saan ka mas makakamura. Wais na tayo Mimi. 🙂

  12. Just want to ask is it MRI and fire insurance are one time payment for the whole year of loan? We were planning to get house in a devel0per and nag vary ba yun expenses ng mri sa lot na kukunin? Ang laki kasi ng computation ng developer namin if ever sa mri and fire insurance 50k plus . As per my friend ang MRI nya is 64k dhil din sa lot area as per bdo.thanks

  13. Just filed a Home Loan from PBCom.
    I got 5.9% per annum fixed in 5 years.
    I guess that’s a good deal considering other banks offered me 6 to 6.5% at the same period.
    My total fees due is around 58,000, but they have an S&R promo (Co family bought a major share) last December. So, I got a 20K off of the application fees.

  14. Hi Rex,

    Is it possible to use my Life Insurance in the company? so that I can get away from paying the MRI charges at the bank? I am planning to apply for a Loan for Security bank then I saw you post regarding additional fees and charges.

    1. I don’t think so Jay, normally it should be personal insurance policy. But you still can try to propose it to the bank. If they accept it then you can save the money you suppose to pay for MRI. Again, save it.

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