a miniature house with stacks of coinsA Bangko Sentral ng Pilipinas (BSP) survey showed that Philippine banks’ standards for housing loans remained the same in the last quarter of 2017.

The Senior Bank Loan Officers’ Survey revealed that local banks retained the same lending standards due to the “unchanged profile” of borrowers, a stable outlook on the economy and the same risk tolerance for home loans.

Lending Policies

Local banks may continue to implement the same credit standards in the first quarter of 2018, since demand for residential properties may continue to increase during this period, according to the BSP. The demand may include homes in southern provinces near Metro Manila, particularly from developments such as Cavite’s Lancaster. A review online already helps buyers save precious time from paying a visit to the site, especially if they remain undecided on a purchase.

Unlike housing loans, the BSP survey presented a different view on banks’ lending rules for commercial real estate loans. It noted a continual tightening of credit standards to corporations for the eighth quarter in a row. While lending policies differ between residential and commercial property loans, a positive year ahead awaits the country’s real estate market.

Positive Prospects

Santos Knight Frank (SKF) expects property developers to turn over more than 52,000 residential units before the end of 2018. For the commercial sector, the property consulting firm said that the office, retail and industrial sectors will continue to expand during the year.

It may be more expensive to buy houses or rent commercial space in Metro manila. SKF said that residential property prices have increased in all segments, while office rentals rose 4.3% in the third quarter of 2017 year over year.

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Are you planning to take out a loan for your home purchase or next commercial property project? It takes a considerable amount of time and research to determine if private institutional funding will be the right choice.