common terms

• Pre-Selling:  Is a term used in selling a condominium project several years before the completion or turn-over date.
• RFO (Ready for Occupancy): The condominium is fully completed and can be occupied already.  The amenities are also complete and functioning during this time.
• RESERVATION FEE: is the amount paid to hold a certain condominium unit in behalf of the buyer for a period of 30 days.  This amount (ranges from 10,000 to 100,000 pesos depending on the condominium project) forms part of the down payment and is non-refundable.
• DOWN PAYMENT or D/P: Is a fraction of the total price which ranges from 10 to 50% depending on the condominium project.  The D/P can be paid in full or can be paid in installment, again, depending on the condominium project.
• BALANCE: Is the remaining amount after the payment of the Downpayment.  This amount can be paid in full upon due date or can be financed through In-house, bank or Pag-ibig financing depending on the Developer.
• IN-HOUSE FINANCING:  Is an accommodation by the developer to finance the remaining balance.  The interest rates however are usually higher compared to Bank’s interest rates.  The duration of the loan is usually up to 10 years maximum only.  Getting approval for this type of loan is easier and not as strict.
• BANK FINANCING:  The remaining balance financed through accredited banks.  The prevailing interest rate is around 9% to 12% depending on the duration of the loan. The duration of the bank loan is usually up to 20 years.  A lot of documents are required in getting an approval.
• PAG-IBIG FINANCING:  Is a government financing institution which gives housing loans to its FILIPINO members.  The interest rates are usually lower than the bank rates.  It also has a maximum of 25 years for the duration of the loan.  However, the maximum loan amount is only P2.5M.
• Value Added Tax (VAT): Is a government tax imposed on certain including the purchase of new condominium units.  The 12% VAT is usually included in the price of the condominium units.  Only condo units priced 2.5M and above are imposed with the 12% VAT.  For units priced less than 2.5M are VAT exempt.