Mortgages and the Mortgage Law in the Philippines

By: Marie Claire Lagrisola

May you be looking for real property for you and your family to call home or a house and lot for sale in Cabuyao, Laguna to sell, it is very important for anyone who is interested in dealing with such real property to know all about mortgaged property and such the existence of a Mortgage Calculator Philippines.

Mortgaged property? Here is Mortgage 101

Every one of human settlements is a big event in every person’s life. This immediately subjects the importance of a person knowing all the essential requisites to take note of when dealing with real estate before the purchase or loan is legally authorized. The word Mortgage is one of those words that we hear all the time but never really know the meaning of it. We are here to tell you what exactly is this! Basically real estate mortgage is a principal obligation and a legal settlement with the aid of which a financial institution or other creditor lends cash at hobby in exchange for taking the name of the debtor’s assets, with the circumstance that the conveyance of title becomes void upon the price of the debt.

In simpler terms, a real estate mortgage is a deal between you and a lender in which the latter lends the former financial assistance in exchange for the right they will become the absolute owner of the said property, let’s say for example, house and lot for sale in Cabuyao, Laguna, in case you fail to pay off the money you’ve got borrowed plus the interest. Here there are two kinds of rates your mortgage contracts may use and that is the Fixed Interest Rate wherein the amount of interest you have for your entire loan stays the same, and the Floating Interest Rest, the mortgaged property interest rate that changes most of the time yearly. Such a change can be an upward spike or a downward spike for it is dependent as well on how well the economy of the country is doing.

Real property mortgaged, a principal obligation with benefits

Why do people go through the real estate mortgage route instead of engaging through the usual types of loans? The topmost advantage of a mortgaged property loan is that you do not have to leave your power of the property and can get the loan at veritably low-interest rates as opposed to utmost other loans.

Additionally, by having a real property mortgaged, you, and any purchaser thereof, will be able to keep the money for a long while and you can use such money for even more future property, or furniture, or as other obligations or payments to achieve actual possession of other things! After all, it is dangerous for anyone to lose all their money or at least a big amount all at once. With a written contract of your mortgaged property, the person possesses the estate and can remain yours in such a way you can keep your money for other proceedings.

But you must also know that mortgage contracts are alone, only it is focused on real property.

Mortgage in the Philippine laws

If ever you are having thoughts about approaching third persons to take part in mortgaged credit to secure an immovable property, you do not need to fret because there are a handful of laws in the Philippine Civil Code to protect you from mortgaged property scams, and to withhold such principal obligation that will benefit the lender and the person being the absolute owner of the property mortgaged that they own.

And since the Philippine Constitution administers such following instances, there are regulations set for the mortgage contracts to follow in accordance with the Civil Code that deals with future property and mortgage law.

The mortgage law establishes a list of requirements for a real estate mortgage to be valid. According to Lawyers in the Philippines here is the list of requirements mandated by the national government to have the mortgage executed legally authorized:

  1. The mortgagor must be the absolute owner of the thing pledged or mortgaged;
  2. The persons constituting the mortgage must have the free disposal of their property, or be legally authorized for the purpose.
  3. Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property.

Indeed, there may be limitations established because of mortgage contracts but rest assured that is for the benefit of all kinds of parties in order to avoid confusion and scams.

Mortgage Calculator Philippines

Did you know that you can calculate your property mortgaged? There is such a thing as called mortgage calculator that gives you different estimates of various home loan or principal obligations to real estate mortgage options. These calculators that focus on personal property are incredibly helpful for people who are looking to take part in mortgage credit especially when you want to compare the different kinds of contracts of mortgages you are interested in and are qualified for, and with this, you can see the expenses incurred and how much the new principal obligation can affect your monthly payments.

Thankfully, Crown Asia, one of the best premium home curators in the Philippines, may be behind the house and lot for sale in Cabuyao, Laguna you have been eyeing, has such a computation tool covered and has an effective and accurate mortgaged property calculator available in their website.

With this, you are free of doubt and confusion and no longer have to hire a mathematician or accountant to do this. After all, sometimes the best person who possesses the most trustful and effective doings is no one but yours!

To add, Crown Asia has been building the best of homey and world-class communities in the Philippines for 2 decades now and has been looking to build even more and have been branching out to curating condominiums. Aside from trusting them with your ideal houses that you may call home, you can totally trust them with their calculators.

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