Bank financing payment schemes for real estate in the Philippines often involve a combination of down payment, loan amount, and interest rates. Here’s a simplified example of a bank financing payment scheme:
Property Details:
- Property Purchase Price: PHP 3,000,000
- Down Payment Percentage: 20%
- Down Payment Amount: PHP 600,000
Bank Financing Terms:
- Loan Amount: PHP 2,400,000 (80% of the purchase price)
- Interest Rate: 7% per annum
- Loan Term: 15 years (180 months)
Payment Scheme:
- Down Payment (Due Upon Reservation):
- Down Payment Amount: PHP 600,000
- Loan Amount:
- Loan Amount from Bank: PHP 2,400,000
- Monthly Amortization (Principal + Interest):
- Monthly Amortization Formula: P = [r*PV] / [1 – (1 + r)^(-n)]
- Where:
- P = Monthly Payment
- r = Monthly Interest Rate (annual rate / 12 / 100)
- PV = Present Value (Loan Amount)
- n = Total Number of Payments (Loan Term in months)
- Monthly Interest Rate (r): 7% / 12 / 100 = 0.0058333
- Monthly Payment (P): [0.0058333 * 2,400,000] / [1 – (1 + 0.0058333)^(-180)] ≈ PHP 20,464.12
- Payment Breakdown:
- Monthly Principal Payment: Part of the monthly payment that goes toward reducing the loan balance.
- Monthly Interest Payment: Interest charged on the remaining loan balance.
| Month | Monthly Payment | Principal | Interest | Remaining Loan Balance |
|-------|------------------|-----------|----------|------------------------|
| 1 | PHP 20,464.12 | PHP 1,328.53 | PHP 19,135.59 | PHP 2,398,671.47 |
| 2 | PHP 20,464.12 | PHP 1,371.56 | PHP 19,092.56 | PHP 2,397,299.91 |
| ... | ... | ... | ... | ... |
| 180 | PHP 20,464.12 | PHP 19,784.19 | PHP 680.93 | PHP 0.00 |- Total Payment over 15 Years:
- Total Payments: PHP 20,464.12 * 180 ≈ PHP 3,683,540.88
- Total Interest Paid: PHP 3,683,540.88 – PHP 2,400,000 = PHP 1,283,540.88
Please note that this is a simplified example, and actual bank financing terms, interest rates, and amortization schedules may vary. Borrowers should consult with the bank to get precise figures and understand the terms and conditions of the loan. Additionally, other fees such as insurance and taxes are not included in this example.
