saveTheCorner
Homeowner
I’m comparing mortgage quotes for a property purchase in Manila at around PHP 67,280,000. One lender has offered 5.53% fixed for 1 year. Its advertised rate looked lower, but the arrangement fee and the applicable loan-to-value tier changed the real cost.
Because the rate resets after only a year, I’m unsure which comparison is most useful: APR, interest paid during the fixed period, or total cash cost including all fees. One quote has a particularly painful fee but allows much better overpayments, which could matter if I reduce the balance before the reset.
I’m also checking early-repayment charges, portability, monthly affordability after the fixed period, and whether refinancing after one year is a realistic assumption rather than something to rely on.
For anyone who has compared Philippine mortgage offers recently, what exact calculation period did you use? Would you model only the first year, or compare several rate-reset scenarios over a longer holding period?
Because the rate resets after only a year, I’m unsure which comparison is most useful: APR, interest paid during the fixed period, or total cash cost including all fees. One quote has a particularly painful fee but allows much better overpayments, which could matter if I reduce the balance before the reset.
I’m also checking early-repayment charges, portability, monthly affordability after the fixed period, and whether refinancing after one year is a realistic assumption rather than something to rely on.
For anyone who has compared Philippine mortgage offers recently, what exact calculation period did you use? Would you model only the first year, or compare several rate-reset scenarios over a longer holding period?