For most people working as an employee, it’s hard to save for the construction or buying of your ideal home. Maybe it will take few years before you can have adequate cash to set up the house you want.

In essence, there are different means in which how you can fund the construction of your house. One popular way of having budget is by applying a housing mortgage. A loan is a borrowed finances from lenders such as wealthy kin, bank, financial institutions or government agencies.

Where to apply for a Housing Loan?

As I discussed earlier, if you don’t get sufficient money for buying or building of your own house you can inquire a housing loan to have enough funds. A number of the typical place where you may obtain a loan are:

1. Rich relatives

For me, this is the best loan you may get specially if there’s no interest on the principal amount. Perhaps you may obtain money from your wealthy parents or siblings. Though, there are also problems if you carry on this one. You may carry out this kind of loan depending on you are assured to pay regularly.

With this kind of loan, the request process is typically easy and fast unlike in the bank or other financial institutions. Additionally, you are not required to produce any documents for the request.

2. Pag-IBIG

Pag-IBIG is the Philippine company that caters home loans for its affiliates. Presently, Pag-IBIG has the lowest interest rate of all the financial organizations in the Philippines providing housing mortgages. However, before you can apply a mortgage, you must be a member first with a total bestowment of 36 months. If you are starting as new member and you want to inquire for a housing mortgage, you can pay the left months to finish the 36-month common practice.

Some of the disadvantages of this type of loan application is the slow preparing and numerous papers you need to present for the approval of your loan. Just a reminder: be patient and adaptable when you apply a housing loan at Pag-IBIG.

The interest percentage of Pag-ibig for housing loan ranges from 8-12 % per annum. The application interval could take highest of higher than one year but somehow it is a seldom case.

3. Bank

It is better to apply for a housing loan to the bank where your savings account is situated. More or less, you learn the people working there or maybe they formerly know you which can be a good side when applying a mortgage.

However, it is also advisable to investigate the lowest interest rate among the banks which you can apply. I believe it is the best valuable thing you should consider when applying a housing mortgage, the interest rate. Second, would be the duration and ease of application method.

In my very own opinion, it is better to have your own house than to rent especially if you have the balances and capacity to buy or build a new one. If you don’t have enough funds at the moment, you can apply to several lenders like your rich relatives, Pag-IBIG or banks giving housing loan. Each has its own advantages and disadvantages, just pick what you think is the most reasonable and lowest interest rate you may obtain.

Gil Tenorio is a finance blogger who likes writing on saving, investment and make money online. To read helpful details on how to open a BDO Loans online banking account, you may go to Financial Management blog for more posts on saving, investment and banking.