How an OFW Can Apply for Security Bank Housing Loan

In less than a week, I made two applications. First, I applied for Rogers Platinum Mastercard and got the result: I was approved. Hurray. (Just to let you know I applied for it for a valid business reason. Bakit parang defensive.)

Second, my family and I have submitted the application for Security Bank housing loan.

Because the family that works together get things done apart. That sounds like a mixed up commercial.

But don’t change the channel or go online somewhere else. This is not a boring post as I’ve always strive to keep it informative and entertaining (or  more like cheesy).

The application for Security Bank housing loan doesn’t have a result yet.

I’m hoping and praying that within a week I’ll know whether I’ll be doing more paper work and start paying mortgage just as what most adults do these days.

What to Expect

What I have for you right now is to lead you to the fast lane. Submit the application minus the hassles that I’ve experienced.

You don’t have to wait for days for a reply, which maybe get caught up in the timezone difference and oblivion, that a reminder is necessary more than once.

OK. I know you get the picture.

Whether you are an OFW or not or absolutely considering to apply for a Security Bank housing loan, this post is for you.

Even if it’s less than the ideal entertaining writing, I’ll make sure it’s full of information you would want to print a copy of it. (Then share it. It isn’t much to ask a favour, right?)

If terms get in the way, jump to the Additional Information. When you’re done, feel free to keep on reading to your heart’s content.

Steps in Applying for Security Bank Housing Loan in the Philippines

For OFWs who have enough time or indefinitely staying or retiring in the Philippines, you can personally apply in one of the local Security Bank branches.

Before you go, might as well learn the terms and list questions to discuss with the bank employee. You’ll get the housing loan application along with the list of requirements.

Requirements for locally-employed borrowers:

• Completely filled out and signed application form (2014)
• Clear copy of one valid ID (photo-bearing government issued) of borrower/spouse/co-borrower/ signatories of the loan
• Any ONE of the following income documents:
  • Latest Certificate of Employment and Compensation
  • Latest Income Tax Return
  • Latest 3 months Payslips
  • Latest 3 months Bank Statements
• Note: to credit commission income, kindly submit latest 6 months payslips
• Mortgage Redemption Insurance (MRI) Application Form (refer to the Additional Information on how you can get around it)
• Relevant collateral documents (Section E)

Don’t leave the bank without getting the contact information of the employee so whenever you have question in filling up the form, you can ask through phone call or email.

But DON’T overdo it. (Which remind me to apologize in sending messages in witching hour.)

For the detailed information, click the link in the Reminder mentioned above.

Steps for OFWs on How to Apply for Security Bank Housing Loan

If you are like me who cannot possibly apply in person for a home loan, don’t worry.

I can guarantee as clear as the sun shining at 9:00 pm in summer (Mountain Daylight Time) that you can apply while working overseas in two ways.

I chose the 2nd option for important reasons you’ll want to consider as well. Or do 1st option instead. Either way submit that home loan application as soon as everything is in order.

Option #1: Apply online.

This is my first choice because I like to do things online. It’s fast and easy; I can do it anytime I want much like blogging at five in the morning.

This tip from an employee has made me NOT to try the Security Bank online housing loan application.

Another person from the head office will contact you and transaction is made through head office.

Pros – Applying is easy for me. I sent the documents (not that cheap) in the Philippines including the special power of attorney (SPA). Refer to the Additional Information on how to get the SPA.

What I have on file are the photocopies and PDF copy of all the documents. If I apply online all I have to do is upload the files.

Cons – My representative in the Philippines will have to go in the head office which doesn’t make sense because there is a Security Bank branch in the next street where my family lives.

The convenience store is farther than the bank yet I know my siblings would get off the couch and walk just to buy cake or ice cream. (Goldilocks. Minute Burger. I can’t blame them because I used to do that.)

Contact Information:

If you decide to apply online for a home loan, could you share how it goes in the comment. Then maybe I would regret doing the option 2. It’s the result that matters anyway.

Option#2: Apply through an attorney in fact holding a special power of attorney.

I know what you’re thinking so here’s the definition of attorney in fact from Investopedia.

An attorney in fact is a person who is authorized to perform business-related transactions on behalf of someone else (the principal). In order to become someone’s attorney in fact, a person must have the principal sign a power of attorney document. This document designates the person as an agent, allowing him to perform actions in the principal’s stead.

Step 1: As an OFW, you can choose an attorney in fact that you trust. I chose and ask the permission of my sibling before I applied for a special power of attorney (with authentication/red ribbon) at the Philippine Consulate in Calgary.

Step 2: Once you’ve settled who can represent you in all the related house acquisition transactions it’s time to find out the requirements.

For OFW Borrowers:

• Completely filled out and signed application form (for the latest form refer to the Additional Information). Scan and send the accomplished form to the attorney in fact
• Clear copy of one valid ID (photo-bearing government issued) of borrower/spouse/co-borrower/ signatories of the loan
• Any ONE of the following income documents:
  • Certificate of Employment with compensation (issued within the last 6 months)
  • Latest Crew Contract (for seafarer/seaman)
  • Latest Employment Contract (for land-based OFWs)
  • Allotment Slip
  • Latest 3 months payslip; OR bank statement for past 3 months
  • Note: For OFWs hired directly abroad, any TWO income documents are required
  • Consularized Special Power of Attorney is needed if with attorney in fact
  • Mortgage Redemption Insurance (MRI) Application Form (refer to the Additional Information on how you can get around it)
  • Relevant collateral documents (Section E)

Step 3: The attorney in fact submits the requirements in one of the Security Bank branch.

The attorney in fact need two IDs for identification and a photocopy of one ID (eg. license, SSS, and Unified Multi-Purpose ID Card).

To my sibling and my surprise, the submission of housing loan application didn’t even last for more than 10 minutes.

What a short period leaving a lifetime impact on our family. Excuse me if I’m being a bit emotional since it’s our dream to own a house that we can decorate as we please.

I’ll definitely choose the paint because my siblings doesn’t have eyes for design. (Proof: Imagine a dark shade of yellow on a door greeting or more like startling the visitors. My sister is proud of her masterpiece. I’m sorry for not giving her an advice in advance.)

Note: NO FEE is collected during the submission.

Additional Information

Application Form – I added the link for the application form in option 2. I also used the same form because I was impatient to wait for the latest Security Bank housing loan application form sent to me through email by the staff.

The effort is not in vain. You can download the latest application form (as shown below).

You can also email a staff to make sure of getting the latest form. If not, choose any form linked to this post.

Special Power of Attorney (SPA) –  You can get a special power of attorney in any Philippine embassy or consulate in Canada or wherever you are. I paid $37.00 for the consularized SPA (with authentication).

You can also get an SPA in a law firm but you will still have it consularize (authenticated) in the embassy or consulate. I’m assuming that total fee is higher than what I’ve paid for an SPA.

Payment Options – I chose the Fantastic Elastic so that I can make overpayments of up to 25% of the loan amount every year. Types of payment options:

• Regular Monthly Amortization: fixed payment of principal and interest
• Fantastic Elastic: customer can make overpayments and underpayments on the loan

Choose carefully the right payment option based on your financial condition before applying for a home loan.

I chose Fantastic Elastic because I want to finish paying the mortgage as soon as possible, yet I don’t want to pressure myself that I hardly have anything to save for the rainy days and summer vacations.

Mortgage Redemption Insurance (MRI) – Burn Gutierrez, one of my favourite pinoy personal finance bloggers best explained the importance of MRI.

MRI is very important to be signed up on when borrowing so that in case the borrower dies or gets disabled, the family members will be protected as the MRI will have to cover whole or in part of the unpaid housing loan balance.

On another note, if you already have your life insurance you can actually ask your bank if it is possible to apply it as the MRI for your home loan.

Since I already have a life insurance, I informed the bank and asked me to submit the life insurance policy along with the other requirements.

Security Bank Blog – Learn from the blog post related to home loan.

Security Bank Promo – Be on the lookout for deals especially the low-interest rate.

If you have any question about the requirement or would like to add mortgage loan tips, leave a comment. Let’s get to the fun part which I’m really excited about.

Processing Time for Security Bank Housing Loan

I was lured by this claim on the website: Own your dream house now with fast approval in 5 days!

Who wouldn’t be enticed? I haven’t seen anything like it. Let me know if you do.

I like the promise of fast approval but the low interest rate is sweeter for me in the long run (10-year fixing period with 3-year term).

The processing time is also one of the reason why I decided to apply for a mortgage loan in a Philippine bank. The seller said that it is faster than Pag-IBIG housing loan.

Well, I am yet to find out if the claim is true in a few more days.

What’s Next

For now all I can do is to wait and write. If the loan is approved then this post will have more updates and smiling emojis :-).

If not I’ll also let you know, then I’ll hide under the rock till I find another opportunity to apply for a home loan. (I’m open to suggestions as early as now.)

Update in case you missed: the  Security Bank housing loan was declined. The next thing I did is to apply for PSBank Home Loan.

The most sensible thing I can do right now other than keep on learning is to keep on saving for a long-term mortgage commitment with Security Bank or Pag-IBIG or other banks.

Whatever happens, I am dreaming of leaving in our own house with pleasing-to-eye paint and close to a grocery store (with vegan section).

Have you applied for a housing loan through Philippine banks? What are the pros and cons?

Photo Credit: securitybank.com

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