CANCELLED.
Last July 11, PSBank called to tell me that they had been trying for a week to contact Banco de Oro (BDO) regarding the loan transfer, but they couldn't seem to reach anyone.
I sent BDO an email to inform them of this and to ask for a rate update. They immediately replied that, "Upon checking, 5.50% rate will no longer be applicable since the promo period already ended." The new rate is now 6%, but there will be other fees to facilitate the transfer on top of the Php 30,000+ we've already paid (not including the insurance costs). Not sure how much the additional fees will cost, but I asked for an estimate the next day (July 12).
On July 16, after not getting a reply despite sending follow-up emails, we decided to cancel. We asked them how to get a refund for the fees and still no word from their end.
PSBank called again on July 17 that they still had not heard from BDO, so I decided that same day to go directly to the BDO branch where our loan officer is based. I was informed that she was not around, but to leave my name and number so that they can call me back.
Two days later, zilch, nada, nothing. I then called their office and was able to talk to someone who had such an authoritative voice, I somehow felt reassured that Carissa would indeed be getting back to me this time. And true enough, that afternoon, I finally received a reply. We are now expecting the refund by next week.
Well, so much for that refinancing idea. I don't think we'll try this again - at least not with BDO since they don't seem at all interested in getting us as clients.
From the payment of the reservation fee to moving in, this will describe where we live and chronicle my attempts as an amateur decorator.
Showing posts with label Home Loan. Show all posts
Showing posts with label Home Loan. Show all posts
25 July 2017
05 June 2017
Refinancing Saga
The good news? We got approved!
The bad news? It will cost us an additional Php 25,000+ (on top of the Php 4000 assessment fee) and the rate is not guaranteed. If the loan is released before the end of June, then we'll get the 5.5% interest rate. If not, then whatever rate they have in July will be applicable.
At 5.5%, our monthly mortgage will be Php 3399 lower for the next three years and we'll be able to pay off the fees (so to speak) within 8 months. Potentially, we'll be able to save Php 95,172 over the remaining 28 months - money that can be used for other house bills.
So, what happens if we don't make the June deadline and the new rate isn't to our liking? We have the option of cancelling and getting a refund (except for the Php 3000 handling fee).
Another concern is the amount of the loan. We applied for the loan two months ago and our remaining balance has since decreased by over Php 20,000+. BDO officer Carol said that the bank will give us a refund for the difference. Not sure how that works, but we definitely don't want to pay more than what's necessary.
The bad news? It will cost us an additional Php 25,000+ (on top of the Php 4000 assessment fee) and the rate is not guaranteed. If the loan is released before the end of June, then we'll get the 5.5% interest rate. If not, then whatever rate they have in July will be applicable.
At 5.5%, our monthly mortgage will be Php 3399 lower for the next three years and we'll be able to pay off the fees (so to speak) within 8 months. Potentially, we'll be able to save Php 95,172 over the remaining 28 months - money that can be used for other house bills.
So, what happens if we don't make the June deadline and the new rate isn't to our liking? We have the option of cancelling and getting a refund (except for the Php 3000 handling fee).
Another concern is the amount of the loan. We applied for the loan two months ago and our remaining balance has since decreased by over Php 20,000+. BDO officer Carol said that the bank will give us a refund for the difference. Not sure how that works, but we definitely don't want to pay more than what's necessary.
15 April 2017
Refinancing
Our three year rate term ended last March so now, our interest rate has increased from 7% to 7.5%. We asked if we could retain the old rate, but that request was denied. We could opt to go for a lower rate of 6.5% (yearly), but we would need to pay a Php 5000 repricing fee and even then, it's not guaranteed.
After asking around, someone informed us that Banco de Oro (BDO) was having a promotion, so I went over to inquire and they gave the following rates:
4.88% - 1 year term
5.50% - 3 year term
5.88% - 5 year term
I've often read that one way to save money is to refinance your mortgage, but we never really considered it before. Now I'm thinking that we should have done this ages ago! Well, here's hoping our loan application gets approved.
After asking around, someone informed us that Banco de Oro (BDO) was having a promotion, so I went over to inquire and they gave the following rates:
4.88% - 1 year term
5.50% - 3 year term
5.88% - 5 year term
I've often read that one way to save money is to refinance your mortgage, but we never really considered it before. Now I'm thinking that we should have done this ages ago! Well, here's hoping our loan application gets approved.
16 May 2014
Hooray!!!
Got this in my inbox on May 7th:
Dear Valued Client,
Good Day!
We wish to inform you that the Bank has implemented your request for change in repricing cycle from 9.75% 5 year fixed to 7.00% 3-year fixed starting April 16 2014 up to June 16 2016.
Though why they gave that start date when we only applied on April 29th is a mystery to me. Shouldn't it begin on May 16th? In any case, here's to lower mortgages!
So we will now get to save Php 3912.44 per month starting today with the new rate. But, it gets even lower since we've decided to make an advance payment on our loan. Here's a breakdown of the changes:
Php 24,321 - original amount
Php 20,408.56 - due to rate change
Php 17,381.87 - due to advance payment
That's a total savings of Php 6,939.13 per month starting in June! We've decided to save the difference either for furniture when we eventually move-in or a new house. I'm still hoping someone out there will build my dream home and sell it to us at a reasonable price. Hahaha!
Dear Valued Client,
Good Day!
We wish to inform you that the Bank has implemented your request for change in repricing cycle from 9.75% 5 year fixed to 7.00% 3-year fixed starting April 16 2014 up to June 16 2016.
Though why they gave that start date when we only applied on April 29th is a mystery to me. Shouldn't it begin on May 16th? In any case, here's to lower mortgages!
So we will now get to save Php 3912.44 per month starting today with the new rate. But, it gets even lower since we've decided to make an advance payment on our loan. Here's a breakdown of the changes:
Php 24,321 - original amount
Php 20,408.56 - due to rate change
Php 17,381.87 - due to advance payment
That's a total savings of Php 6,939.13 per month starting in June! We've decided to save the difference either for furniture when we eventually move-in or a new house. I'm still hoping someone out there will build my dream home and sell it to us at a reasonable price. Hahaha!
29 April 2014
Mortgage Rate Adjustment
Not sure why we hadn't thought of this before, but we are now looking into having our rate repriced. Here's how things currently stand:
Rate: 9.75% fixed for five (5) years until June 2015
Term: 16 years
Monthly Amortization: Php 24,321
Basically, we're paying 70% of the mortgage on interest alone. In other words, PSBank has made a lot money from us (then again, that's mostly how loans work).
After a couple of phone calls and numerous emails, we've decided that the benefits outweigh the Php 5000 adjustment fee. Yup, there's a "Reprising Cycle" fee for the bank to process the request which is still subject to approval, and a distinct possibility we will be wasting that much money if they reject our application.
But if all goes according to plan, we could end up saving at least Php 3390 per month with the new rate! In a year, that's a total of Php 40,680 we could use for a lot of other things.
*Keeping our fingers crossed*
Side Note: It pays to ask twice. Initially, we called the customer service hotline, and the agent advised that the new rate will be 6.5%. When we sent an email to that same department (we like to have everything in writing), they informed us that it's between 7 to 7.5% fixed for two or three years.
In another email, we asked if we could get an estimate of how much the new monthly amortization would be if the rate went down to 7.5%. Here's their reply:
We wish to confirm that your monthly amortization will change if you will request for rate adjustment. However, we cannot provide you the estimated monthly amortization as this will be system generated.
My uncle, who's a district manager over at BPI, questioned why they could not do it (I didn't believe PSBank either, but it's hard to argue when you're more than 1000 miles away - literally). So I called customer service last Saturday and the agent who answered said that she will have to ask another department for that information. By Monday afternoon, I had a detailed sample computation in my inbox.
Why did I have to make a long distance phone call for something that was possible to begin with?
Rate: 9.75% fixed for five (5) years until June 2015
Term: 16 years
Monthly Amortization: Php 24,321
Basically, we're paying 70% of the mortgage on interest alone. In other words, PSBank has made a lot money from us (then again, that's mostly how loans work).
After a couple of phone calls and numerous emails, we've decided that the benefits outweigh the Php 5000 adjustment fee. Yup, there's a "Reprising Cycle" fee for the bank to process the request which is still subject to approval, and a distinct possibility we will be wasting that much money if they reject our application.
But if all goes according to plan, we could end up saving at least Php 3390 per month with the new rate! In a year, that's a total of Php 40,680 we could use for a lot of other things.
*Keeping our fingers crossed*
Side Note: It pays to ask twice. Initially, we called the customer service hotline, and the agent advised that the new rate will be 6.5%. When we sent an email to that same department (we like to have everything in writing), they informed us that it's between 7 to 7.5% fixed for two or three years.
In another email, we asked if we could get an estimate of how much the new monthly amortization would be if the rate went down to 7.5%. Here's their reply:
We wish to confirm that your monthly amortization will change if you will request for rate adjustment. However, we cannot provide you the estimated monthly amortization as this will be system generated.
My uncle, who's a district manager over at BPI, questioned why they could not do it (I didn't believe PSBank either, but it's hard to argue when you're more than 1000 miles away - literally). So I called customer service last Saturday and the agent who answered said that she will have to ask another department for that information. By Monday afternoon, I had a detailed sample computation in my inbox.
Why did I have to make a long distance phone call for something that was possible to begin with?
21 June 2010
Miscellaneous Information
TCT – Donna from the Avida Land Inc. (ALI) Group Support sent us an email last June 6 that the Transfer Certificate of Title (TCT) error has been corrected. She also advised that their sales documentation team will send an update once they have reviewed the documents.
As of today, they have yet to send the corrected forms for our signature. Actually, we have not heard from them since.
House Turnover – In a letter dated June 9, Avida advised that our new turnover date is scheduled for June 18. Since they gave the notification more than a week in advance, is it too much to hope that they are going to thoroughly check the house this time? We’re crossing our fingers...
Bank Loan – Christine from the bank informed me today that the loan proceeds have been released to Avida last June 16. This means our amortization will start next month, July 16.
We are now heavily mortgaged and actually quite happy about it - at least at the moment.
As of today, they have yet to send the corrected forms for our signature. Actually, we have not heard from them since.
House Turnover – In a letter dated June 9, Avida advised that our new turnover date is scheduled for June 18. Since they gave the notification more than a week in advance, is it too much to hope that they are going to thoroughly check the house this time? We’re crossing our fingers...
Bank Loan – Christine from the bank informed me today that the loan proceeds have been released to Avida last June 16. This means our amortization will start next month, July 16.
We are now heavily mortgaged and actually quite happy about it - at least at the moment.
03 April 2010
Bank Update
All is as it should be. We signed the renewal documents last Wednesday and we are expecting the refund by next week.
The refund amount is miniscule but as I mentioned to Christine, it's the principle that counts.
The refund amount is miniscule but as I mentioned to Christine, it's the principle that counts.
27 March 2010
Inefficiency at its Finest
March 23, Tuesday: Christine from the bank asked us (via email) when Earl and I will be able to pass by their Makati office to sign the loan documents and pay the bank charges. She also mentioned that she will email the amount.
I then call her up to tell her that we already paid the bank fees last year and asked if we could have the documents sent via office messenger instead. She replied that we would need to sign it in front of bank officials. She also advised for us to send her the OR number so that they can check.
Later that night, I sent her an email with the OR number, date and amount paid.
March 24, Wednesday: Christine replies with this email: "Will check the OR to identify the breakdown. Hope you can sign the loan docs soon."
I reply back advising that we will confirm the meeting date the next day (Thursday) but we will most likely be available on Friday, March 26. I also asked for a follow up regarding the bank fees.
March 25, Thursday: Earl confirms in writing that we will be available on Friday, March 26 at 2 PM. She replies back but this time she copies in Denise. She instructs us to look for Denise on the 8th floor when we arrive at their office.
I ask her again regarding the bank fees but she did not answer.
March 26, Friday: We arrive at 2:25 PM and ask for Denise. When she arrives, she asks us to wait a bit as they are still computing the fire insurance. I asked, "We have to pay fees?". She said yes. I informed her we already paid the fees and that we gave Christine the OR number a few days ago so that they can cross reference.
Around ten minutes later, she comes back with the documents and the bill for the fees. We take a look and the amount due is higher than what we paid for last year. I asked why the fees increased and Denise explains that it was due to their service provider changing the processing rates.
I informed her again that we already paid for the charges last year. We also tell her that we're actually expecting a small refund as the fee we paid was based on an incorrect loan amount initially given to them by Avida. The actual amount is lower so Ming, who has since resigned, advised that we will get a refund (albeit a small one).
Denise said that she will check if we can get a waiver. My reaction? Uh, what's to waive considering this loan was already approved last year and the fees have already been paid for? In all my conversations with Ming and her successor Rona (who also recently resigned), they never mentioned that we would have more fees to pay or that if the fees increase, we would need to pay for the difference.
At that point, I asked her why didn't they check or settle the issue (i.e. OR, waiver, etc) prior to our arrival considering that they already had all the information days before? I was expecting that we'll just sign the documents and leave.
She said that she just gotten our account from Christine and Rona recently and has not been able to check our file yet. I told her that was NOT an excuse and if she had been working in my office, she be dead by now (figuratively speaking, of course). I also told her that the meeting was a complete waste of our time considering that Earl and I both had to go on leave just to meet up with her. We told Denise that we are not signing anything and that we are expecting not only the waiver but also the refund. Was she going to pay us for the leave we wasted? Does this mean we have to come back and go on leave again?
Denise said that they will go to our respective offices in Alabang and Makati to get our signatures. Earl then asked why they insisted we visit their office if they could have gone to us to begin with. She didn't answer.
I then call her up to tell her that we already paid the bank fees last year and asked if we could have the documents sent via office messenger instead. She replied that we would need to sign it in front of bank officials. She also advised for us to send her the OR number so that they can check.
Later that night, I sent her an email with the OR number, date and amount paid.
March 24, Wednesday: Christine replies with this email: "Will check the OR to identify the breakdown. Hope you can sign the loan docs soon."
I reply back advising that we will confirm the meeting date the next day (Thursday) but we will most likely be available on Friday, March 26. I also asked for a follow up regarding the bank fees.
March 25, Thursday: Earl confirms in writing that we will be available on Friday, March 26 at 2 PM. She replies back but this time she copies in Denise. She instructs us to look for Denise on the 8th floor when we arrive at their office.
I ask her again regarding the bank fees but she did not answer.
March 26, Friday: We arrive at 2:25 PM and ask for Denise. When she arrives, she asks us to wait a bit as they are still computing the fire insurance. I asked, "We have to pay fees?". She said yes. I informed her we already paid the fees and that we gave Christine the OR number a few days ago so that they can cross reference.
Around ten minutes later, she comes back with the documents and the bill for the fees. We take a look and the amount due is higher than what we paid for last year. I asked why the fees increased and Denise explains that it was due to their service provider changing the processing rates.
I informed her again that we already paid for the charges last year. We also tell her that we're actually expecting a small refund as the fee we paid was based on an incorrect loan amount initially given to them by Avida. The actual amount is lower so Ming, who has since resigned, advised that we will get a refund (albeit a small one).
Denise said that she will check if we can get a waiver. My reaction? Uh, what's to waive considering this loan was already approved last year and the fees have already been paid for? In all my conversations with Ming and her successor Rona (who also recently resigned), they never mentioned that we would have more fees to pay or that if the fees increase, we would need to pay for the difference.
At that point, I asked her why didn't they check or settle the issue (i.e. OR, waiver, etc) prior to our arrival considering that they already had all the information days before? I was expecting that we'll just sign the documents and leave.
She said that she just gotten our account from Christine and Rona recently and has not been able to check our file yet. I told her that was NOT an excuse and if she had been working in my office, she be dead by now (figuratively speaking, of course). I also told her that the meeting was a complete waste of our time considering that Earl and I both had to go on leave just to meet up with her. We told Denise that we are not signing anything and that we are expecting not only the waiver but also the refund. Was she going to pay us for the leave we wasted? Does this mean we have to come back and go on leave again?
Denise said that they will go to our respective offices in Alabang and Makati to get our signatures. Earl then asked why they insisted we visit their office if they could have gone to us to begin with. She didn't answer.
08 February 2009
Read the Large Print
We went to the bank last Friday to sign the loan. The lady assisting us (her name was Ming) advised what the loan amount was and the details corresponding to the loan.
She also advised that while they will take the developer's computation as is (meaning no appraisal needed and the appraisal fee is waived), they will round off the figure to the nearest thousand. So if there was say, Php 928 in small change, we would need to pay that amount directly to the developer.
Okay, no problem.
Later than night, I decided to double check the loanable amount as I was planning to pay the difference the next day. Lo and behold, the amount we signed for was different from the official computation given by Avida. It was Php 24,000 more.
The thing is, the miscellaneous fees were based on the loan amount. So basically, we overpaid.
This discovery then resulted in a late night phone call to our sales agent. His explanation? The bank probably took the first computation they gave. This was used to pre-qualify us for the loan as we wanted to know whether we would be approved before we gave the reservation fee.
The agent was right. Good thing I kept the earlier computations (they were attached to the official one). He promised to fix this on Monday so we'll see tomorrow.
Well, this teaches me yet again that if I want something done right, I had better check things myself. Assuming that everything is in order will result in wasted time.
She also advised that while they will take the developer's computation as is (meaning no appraisal needed and the appraisal fee is waived), they will round off the figure to the nearest thousand. So if there was say, Php 928 in small change, we would need to pay that amount directly to the developer.
Okay, no problem.
Later than night, I decided to double check the loanable amount as I was planning to pay the difference the next day. Lo and behold, the amount we signed for was different from the official computation given by Avida. It was Php 24,000 more.
The thing is, the miscellaneous fees were based on the loan amount. So basically, we overpaid.
This discovery then resulted in a late night phone call to our sales agent. His explanation? The bank probably took the first computation they gave. This was used to pre-qualify us for the loan as we wanted to know whether we would be approved before we gave the reservation fee.
The agent was right. Good thing I kept the earlier computations (they were attached to the official one). He promised to fix this on Monday so we'll see tomorrow.
Well, this teaches me yet again that if I want something done right, I had better check things myself. Assuming that everything is in order will result in wasted time.
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