Sa seksyong ito, tuturuan ka naming kung paano pipiliin ang pinakamahusay na mga home loan sa pamamagitan ng isang serye ng mga hakbang.

1 Alamin ang elementaryang konsepto sa pagkuha ng home loan.

Ito ay maaaring simple ngunit kadalasan napapabayaan natin malaman ang mga elementaryang konsepto sa pagkuha ng isang home loan. Kapag walang teknikal na kaalaman, andyan ang hindi pagkakaintindihan sa pagitan ng konsumer at bangko. Na nagreresulta sa “bad business.” Maaari mong tingnan ang Part 1 at Part 2 ng Bagay na Dapat Mong malaman tungkol sa Loan Home na tuutukoy sa kung ano ang mga pagpipilian sa isang paghihiraman at kwalipikasyon mo bilang konsumer.

2 Tantyahin ang hihiraming halaga at kung kailan mababayaran ito ng buo

So alam mo na ngayon ang mga kwalipikasyon sa pagkuha ng home loan, susunod na bagay ay na mayroon ka upang masuri kung gaano kalaki kailangan mong humiram at kung kailan ay maaari mong bayaran ito para sa buong. Sa madaling salita, ang iyong mga budget o kakayahan makapagbayad.

3 Alamin ang mahu husay na home loan sa merkado

Maghanap sa internet o lokal na mga bangko para sa kung ano ang inaalok nilang interest rate, ‘yung kayang abutin ang iyong badyet at kung saan angkop sa iyong mga profile.

Tandaan: Huwag malinlang sa pamamagitan ng Home Loan Promos, ang mga promo ay karaniwang magkaroon ng isang napaka mababang interest rate para sa unang taon ngunit pagkatapos ng unang taon na karaniwang mas mataas na mga pagbabayad ng iyong utang dahil tataas din ang interest rate kalaunan.

4 Makipag-ayos sa Home Loan Interest Rate

Sa wakas! Nakakita ka na ng bangko na may pinakamaliit na interest rate. Pero teka, hindi nangangahulugang ito na ang pinakamagandang makukuha mo dahil lingid sa kaalaman ng nakararami, pwede kang makipag- tawaran sa interest rate. Oo! Possible ito.

Quick tip: Laging magkaroon ng 3-4 na pagpipilian at pagtalunan ang interest rate, tandaan na kahit 0.01% ay malaki ang epekto sa iyong babayaran. Andito ang aming infographic sa pagbili ng bahay sa Pilipinas.

Pagbili ng bahay ay isang tunay  na trabaho lalo na kung ito ay ang iyong unang pagkakataon na gawin ito. Ito ay nangangailangan ng oras at pera kaya OK lang na mag-abang at mag-intay para malaman ang iyong mga pagpipilian. Sa kabutihang palad, ang iMoney Philippines ay andito at tapos na ang trabaho para sa iyo gamit ang aming home loan comparison chart.

The post Hakbang sa pagkuha ng Home Loan sa Pilipinas appeared first on iMoney.ph.

Taking a mortgage loan? Here are nine of the common mortgage loan mistakes that Filipinos make especially when they’re applying for it for the very first time. Read on, it is better to be safe than sorry.

Diving in when you’re Not Qualified

Banks, by nature, are generally eager to offer mortgage loans to qualified home buyers. The keyword, though, is “Qualified”. In the Philippines, a qualified mortgage loan applicant means that you are fit to with the banks qualifications like the amortization you have to pay is 30% of your gross monthly income and essentially have money enough for down payment. If you don’t fit the criteria, they’ll have no problem rejecting your application. So before you apply you’ll want to make sure you’ve done the necessary preparations and are not fighting a lost cause right from the start.

Mortgage Loan Application delaying

Banks take up to as fast as ten days to as long as two months on approving your loan depending on the case of the borrower. In reality, if you already picked out a design for your home and already paid for the down payment, house construction costs comes in which is not the best position to be in since you rarely have the money to pay for these if you are getting a loan. Just imagine the paper work and finance checks that banks put to this application process, delaying your application is not always a good idea.

Going Straight for the Lowest Interest Rate and Nothing Else

You’re going to borrow a big sum of money. Obviously, you’ll sign up with whoever offers you the lowest interest rate. Right? To a certain extent, it is. Your priority should definitely lies with getting the lowest possible interest rate, but you shouldn’t forget about things like margin of financing, lock-in period, and simple stuffs like making sure a branch is within your vicinity.

Here is a step-by-step guide in getting the best deals with the less effort!

Going for the Lowest Interest Rate and Opting for short-term re-pricing

Your aim is definitely to get the best interest possible and you opted for a short-term re-pricing. Usually these lower interest rates are only available on a promotional basis. Interest rate will vary depending on the market interest rate (which most of the time higher than the given rate) and if you do such a thing, you are actually paying more than you should. So who wins? It is better if it is you, the borrower. Always think long-term. Always!

Declaration of finances

Banks in the Philippines always ask for your credit history, like declaring your credit card/s, annual salary and properties owned or loaned which is part of the normal process. What consumers don’t know is that these banks cross-reference records with other financial institutions. One wrong declaration of your asset or liability can decline your mortgage loan application and delay you in creating your dream home.

Not Factoring in Your Home Loan Fees and Charges

Home loan involves fees, charges and even home insurances that may come as a surprise for the inexperienced home buyers. Some banks absorb part of these charges, whilst others may not. Most home buyers have limited funds (and hence the need to take a mortgage loan), so it is imperative that you understand these charges involved before you commit.

To understand the major fees and charges associated with buying a property through a mortgage loan, please refer to our article our info graphic that is a Guide for Filipino’s on Home Buying Fees and Charges.

Neglecting insurance.

You know this but you tend to neglect insurances because it is costly. But, do you know that if insurance too is basic in borrowing? Banks often require fire insurance and mortgage redemption insurance – all in which is essential if the worst case scenario happen. An MRI is a life insurance policy with the bank as the beneficiary in case of the borrower’s untimely death. And don’t take that risk, it is not worth it.

Not negotiating.

Yes, negotiating for your home loan interest and the cost of the house is possible. It’s just that you are not asking the home loan officer or the Realtor. You should definitely try this and make sure you have plenty of options like the option to walk away when they don’t give in to your reasonable requests.

Not Reading the Terms & Conditions

At iMoney, we’ve always emphasized on the need to read all the fine prints for anything that involves money. This goes for your mortgage loan agreement as well. If you don’t have the capacity to do so, make sure you get the loan officer to point out all the things that matter (such as loan amount, interest rate, installment amount, loan period, margin of finance, lock-in period, early settlement penalty and fees & charges).

The general rule: if it doesn’t appear in your agreement, it doesn’t take effect. Period. So if your home loan shows a lock-in period of 3 years whilst your officer is telling you it’s 1 year, the former wins. All the time.

Taking a mortgage loan right now?  Why not check out our mortgage loan comparison table and find one that suits you the most!

The post 9 Mortgage Loan mistakes Pinoys make appeared first on iMoney.ph.

Securing a loan especially business or personal loans is one of the most tedious tasks you may encounter in your life, and after all you won’t be getting loans if you don’t need it, right? So you shop around for the best deals, asked friends for recommendations and even went as far as browsing the internet for bank info and feedback just to make your decision in all 50+ pages on that forum and yet your loan application was unapproved. Let me tell you my friend, you are not alone! Loans unapproved are common.

Here’s why. Banks operate by the money of their depositors, and if you were a depositor, you want your money in full and in peace whenever you withdraw it. Banks work in a philosophy that the probability of loss is less than the interest rate they can collect from the loans they lend. So if there are only a few deposits in the bank, the chances are steep in having your loan approved. (Do you know that only 2 out of 10 Filipinos have a savings account?)

Basically for every type of business, bank officers know the profitability if it were to become successful or not. Let’s assume you are starting your business and going to loan an amount of P200, 000.00 at 10% interest. For this example, bankers would have a target loss of 8% and the success rate is at 50%. So if worst comes to worst that this business would loss half of the money loaned, it reduces the success rate to 25%, which in fact is much higher than the target loss of 8%. That gives a red alert to loan officers to not approve the loan.

So what can you do to have your loan approved? Raise capital without borrowing! Banks need an assurance that you can repay them. Here are the two steps.

1 Attract Investors

Create a solid business plan and invite people to invest in your business. Word of caution: You have to have a real team behind this so that you can have the investors’ confidence in what you are doing.

2 Raise Equity Capital

It can be in the form of office equipment, machines or a car which later on if you ask for a loan can be a form of collateral. This is necessary because even if your business fell short on expectations. Banks can just get these equipment so they can recover the loss from the loan you borrowed.

Are you interested in getting a personal loan? Here is our personal loan comparison page.

The post Loans unapproved are common in the Philippines appeared first on iMoney.ph.

In our last blog post, we talked mainly on how to save money by allocating a percentage of our salary in our savings account, lessening expenses and getting to save easy money. Now, we will be talking about how to save money by increasing our cash flow.

Normally, increasing our income involves finding another job. But it requires a lot of hours and rarely anything is left in our time doing something else. So to manage expectations, I am going to cite examples of getting passive income with less effort.

1 Save old unused items

Why an online store? Building an online store is a tough job so why I am saying this? Well, there are platforms in the internet wherein you can just upload your merchandise and people would search for it on the site itself. Examples would be sulit.com, ebay.ph and olx.com. The best part about this is that the money you get is equivalent to the effort you put in selling. You can think of an item that most people would look for, may it be a used item or a new one. You can really get a good price for an item you save and cared for. It is simple, easy and the best part you can control your time.

2 Get paid when spending

Cashback credit cards pay a portion of the money you spend in groceries, gas and other utilities. Best part is, you can completely enroll your bills to pay itself via direct debit, so that there would be no interest charges incurred and you get the full amount which can go up to 10% of the total amount purchased.

3 Get paid for Opinion

A lot of companies are going online and they want your opinion for everything they have to offer. You can get paid by doing online surveys and you won’t need an expertise in doing it, you just have to be yourself and if you have a few hours in answering questions, you can actually earn a lot of money in doing it.

4 Rent place for Travelers

Now this is easy money. You can open your home to serve as a hostel for travelers and have them pay rent. All you need to is tidy and be hospitable, which is not a problem in doing because culturally we are hospitable. You always clean the house anyway; why not get income when doing it.

There are a lot of ways in earning money easy, we just have to be creative and do our research when looking for ideas. This will cause less stress and have you prepared for a better future or that dream business that you want. Anything is possible if we are disciplined about our finances.

The post How to Save Money Wisely for Filipinos – Part 2 appeared first on iMoney.ph.

Do you ever wonder what is happening behind the scenes in a credit card transaction? How the banks are linked to you and the seller, and how is someone get paid after you pay the bank. And I will tell you this happens all in ten seconds.

You don’t believe me? In this infographic, we explain the inner workings of a credit card, as well as the offer tips to credit card holders on how you can minimize the fees on your card, and what to do if you’re in too much debt.

A buyer swipes his or her credit card via a credit card reader, sends out information to the bank, the bank in return verifies, confirms and notifies the seller, making the transaction valid! All in 10 SECONDS! Amazing!

Do you want to get a credit card? Look at our credit card comparison table now!

The post Credit Card Transaction Anatomy in 10 seconds appeared first on iMoney.ph.

If your wallet is empty, a payday loan might be good for you, but make sure you check alternatives first!

A Payday loan, sometimes also referred to as payday advance or cash advance, is an unsecured loans with a very short tenure. Usually, you are supposed to pay back the full amount on your next payday. Lenders check if the borrower has got an employment before giving out a loan, most of the times.

How do Payday Loans work

When taking out a payday loan you are usually required to verify your employment status. Requirements differ from lender to lender, though. Some lenders require a bank statement, while others require pay stubs or even don’t need any verification (which increases your interest rate!). Also you would have to provide a postdated check covering the full loan amount plus the agreed interest.

Once it’s payday, you are expected to pay back the money in the branch. If you don’t do so, the lender will use the check to get his money back. Of course, you should make sure your check is covered, otherwise the lender will keep pushing on you.

Also, there are some websites that offer online application for payday loans. The only difference is the application process and how the money is transferred. Instead of getting cash you receive your money by direct deposit and the lender withdraws the money from your bank account on your next payday.

Reasons for Payday Loans

There might be times you run out of cash and some kind of emergency occurs. When you need instant cash and you don’t have any friends or family, that can help you out, payday loans are a good way to bridge that gap. However, most people take out payday loans to cover ordinary living expenses. Considering the high interest rate, you should don’t make that mistake.

Risks that come along with a Payday Loan

When taking out a home loan, you should consider the extremely high interest rates! You might be able to serve the interest over a short period of time and it doesn’t appear to be that high, but most people fail to repay a payday loan without taking out another loan. A personal loan is the better alternative in most cases, for sure.

Alternatives to Payday Loans

Before taking out a payday loan, make sure you check these alternatives, since they usually have a much lower interest rate!

If you own a car, you can use your car for securing a personal loan, which lowers the interest rate. Also, home loans in general have a lower interest rate than payday loans. Since the installments are stretched over a certain period of time, you are less likely to fail your payments. In addition, check if your credit card provider offers cash advance, maybe your friends or family members can help you out, or even your employer might grant you a small loan amount.

Currently we do not offer payday loans, especially due to the high interest rate. If you seek for a personal loan in general, visit our personal loan comparison page.

The post Payday Loan in the Philippines appeared first on iMoney.ph.

According to studies, one of the most important lessons that a parent can impart to their children is financial responsibility.

It has always been said through and through that “the sooner the better” is the way to go when you want get ahead, may it be sports, academics and finance because time compounds. Here are three of the things you can teach your kids about money.

1 Teach your kids the Value of Money

For us Filipinos, we know that money is hard to earn but we always want to give our best for our children. It is an open secret that we go all the way overseas to work so that we can provide them a good future, if not the best.

Most of the time, Filipino children do not realize these facts because the parents don’t get their children involve in the family’s decision making. It is our culture that it is this way but it would be best if the children would join so that he or she will be aware of the family’s situation, physically and financially. Let them join the budgeting or let them do the budget itself.

“For the things we have to learn before we can do them, we learn by doing”

- Aristotle

Money is hard to earn, it’s a universal truth but our children will only realize this by the time they are earning their own money.

2 Teach your kids about Banking

Introduce them to money by giving them an allowance and opening their savings account. Communicate to them that 20% of their allowances should go to their savings account that they can use in the future and also another 20% to represent money that they cannot spend (just like taxes).

Example, if you are giving your kids 100 pesos per week, ask them to give you the 40 pesos so that they can feel what we adults feel when our paycheck arrives. This gives them the sense of what the real world is and gives them an idea how it works.

Quick tip: Give their allowances in small portions so you can encourage saving.

3 Teach your kids on how Investing and Lending works

Sounds hard? I didn’t mean investing in the stock market of course! It can be as simple as getting government bonds and let them see how it earns over time and how other people make their money work for them. This is the same case, as when they try to borrow money from you when they are going to buy something- in this case ask them for interests, even if it just 1%. In this sense your children can already see how compounding interests works on both levels.

Teaching our kids finance is both easy and difficult task, as they are still developing and absorbing knowledge like a sponge. The fact is, developing their financial habits at an early age is easy but controlling our actions during the process can be troublesome. Knowledge on finance is just a kick start- but in everything that we want to achieve, attitude is always key in which our habits dictates.

The post 3 Things you can teach your kids on Money appeared first on iMoney.ph.

You can reach your saving goals if you plan correctly and you reward yourself during the process.

Giving in to temptations as said by your peers should always be avoided, at all cost. This would not only lead you to the wrong direction of the goal you are trying to reach but it can even cost you more in the long run.

Have you found yourself skipping every social event just because you really need to save money? Or in the worst case, you let go of that cup of coffee that has been your lifeline to sanity for the last two years you are working professionally just because you want your savings to increase?

This is not entirely true for your finances. No! I am not saying that you should always give into temptations every single time, of course! But actually giving in to temptations if you are holding it for too long can help you. Key here is moderation.

The Science of Giving into Temptations

Studies have shown that it is bad for us if we resist on the things that we love, scientists say that we feel more dissatisfied if we self-regulate most of the time – in short having little of the things that you love to do or eat can really do you good. You actually get angry during the process of self-regulation. Don’t believe me? How about if you are sleep deprived? Now we’re talking!

I think most of you would agree that, if we deprive ourselves more, the more we spend money after the process because we felt that we deserve it because we have been not doing it for so long and you find yourself more in a rut than you were before. It is simply not the way to go, obviously.

Sometimes giving into temptations can really help you achieve your financial goals better because all of us need a break from it even if you are a hardcore planner. Here is a quick tip; you have to set realistic short term financial goals you can aim for the week or for the month.

An example, if you can deposit P500 more in your savings account this week, you can use the 20% to buy something nice, remember the point here is that you actually saved more and you are setting this reward system so that later on you would be accustomed to the “saving scheme” you have set-up for every week until you grow tired of the rewarding system. So you are actually changing your routine here. Give it a try!

Giving into temptations once in a while is not a bad thing, you simply can’t just change drastically the way you live just because things drastically change for yourself, and we all need an adjustment period just like in losing weight or quitting smoking.

The post Temptations and Savings appeared first on iMoney.ph.

As a college student from the province and studying at the jungle life in Metro Manila you are basically living on your own. It is one step towards adulthood and you are forced to live life the way how adults live it, well… almost. But how can you survive college without any skill and guidance? Fortunately, we went ahead and had it done for you!

Here are some of the tips for a college student like you.

1. Learn how to cook. Anyone can do it! That means even you college kid! Just Google a recipe or what you want to cook and just follow the instructions. Don’t fret, give it a try!

2. Skip the soda and just drink water. Soda is half bottle sugar and you don’t want that in your body, it’s not good for you.

3. Plan your grocery shopping. Planning your meals ahead can spell ‘savings’, it saves you time and money in going back and forth to the store and ingredients that you need for the week can be bought in bulk, always ask for a discount when you are in the public market.

4. Ask the necessary “Do I need this?” question. Oh yes, instincts tell us that most of the items we grab are wants than needs. And, supermarkets are designed for us to buy the things that we don’t need.

5. Ask for a student discount. This is simple, just flash your ID and you can get up to 20% discount. Only requirement is, don’t be shy asking for it.

6. Go to your classes. You pay for them and in college you need them to survive the semester because some professors do track attendance, so get the value out of it!

7. Just buy one notebook per semester. Truth is you don’t jot down notes all the time right?

8. Take advantage of the school library.  

9. Ask for the electronic copy of the lecture. If you have your laptop with you, no need to photocopy every school lecture. You are doing Mother Earth a favor too.

10. Stay active, join an organization. This will keep your body active so you don’t have to a member of some gym, with the exception that this is the food club.

11. Go volunteering on the weekends, this is an opportunity for you to meet new people and it doesn’t cost anything; if not

12. Sleep on the weekends. You barely sleep during days with classes, so take advantage of the weekends to rest and chill. This is good enough time to get ready for another stressful school week.

13. Never get on vices or if you can’t try to minimize it. College can be full of parties and events and these instances call for expenses. Remember, you are in college so play the part. (Read: You are not earning good money yet).

14. Get an apartment near your university. Rent may be higher but if you consider the pesos you spend on transportation on a relatively ‘cheaper’ apartment every day. You will realize that if you combine the cost, it is actually cheaper, if not the same costs.

15. Get a roommate. If you’ve done #14, but the costs is still higher, get a roommate! You can share the costs and you always need friends anyway.

16. Buy second hand text books. 

17. Open a savings account. You have to safeguard your money but do it while earning interest.

18. Avoid the big spenders when you hang-out. You’re big enough to realize that when you hang out with these people you also spend more than the normal budget.

19. Invest in your learning. Get a hobby, investing on education pays the best interest.

20. Subscribe in iMoney Philippines for more financial tips! That’s right!

The post 20 Saving Tips for a College Student appeared first on iMoney.ph.

Nagtataka ka ba kung ano ang mga kaganapan sa isang credit card transaksyon? Kung paano nagkakadugtong- dugtong ang mga bangko, mga pamilihan at ikaw, ang konsumer? At sasabihin ko sa’yo na lahat ng ito ay nangyayari sa loob lamang ng 10 segundo!

Ayaw mong maniwala? Sa infographic na ito, ipapaliwang namen ang mga nangyayare sa loob ng isang credit card transakyon at hindi lang ‘yon! Magbibigay din kami ng mga ilang tips kung paano maiiwasan ang mga bayarin at singil sa iyong credit at ano ang dapat gawin kung ikaw ay baon na sa utang.

Ang mamimili ay i-sswipe ang kanyang credit card sa credit card reader, ipapadala ang impormasyon sa bangko at ito ay ibeberipika, at kokompirmahin ng bangko at bibigyan ang bilihan ng isang signal na ang transaksyon ay balido. Lahat ng ‘yan sa loob ng 10 segundo! Nakakabili di’ba?

Interesado ka bang magkaroon ng credit card? Tignan ang aming credit card comparison table ngayon.

The post Anatomya ng isang Credit Card Transaksyon [Infographic] appeared first on iMoney.ph.

When it comes to card products for financial needs, most Filipinos would instantly think of “Credit Card” and “Debit Card”.  What many people may not know is that there is a third category of card product that enables users to pay by plastic using a pre-loading mechanism. In this article, we shall examine this category of card product – the Prepaid Credit Card.

What Is A Prepaid Credit Card?

Also referred to as a “prepaid card”, a prepaid credit card is a card product that allows you to purchase goods with plastic money, very much like a conventional credit card.  The major difference lies in the fact that you have to “load” the card with money prior to using it.  The concept is very similar to a prepaid account offered by mobile telecommunication service providers.

How Prepaid Credit Cards Work?

A prepaid credit card is, first and foremost, an instrument to store monetary value.  Money can be loaded into the card at a bank branch or at an Automated Teller Machine (ATM). In the Philippines, the maximum amount you can load into a prepaid credit card is as much as you can..

When money is loaded into a prepaid credit card, cardholders can begin making purchases using the card.  The act of making a transaction using a prepaid credit card is exactly like how a credit card works.  You simply look for counters with the Visa or MasterCard sign (depending on which type of prepaid card you hold), then have your card inserted through a terminal just as you would a conventional credit card.

During the purchase, the value of the transaction is deducted directly from the amount stored within the card.  In the event that the stored amount within the prepaid card reaches zero or isn’t enough to carry out the purchase, the transaction fails.

Additionally, a prepaid card can also be used to withdraw money which has already been pre-loaded into the card but for a fee of PHP50 and you can only do it over-the-counter (OTC).

To withdraw pre-loaded money from a prepaid credit card, a Personal Identification Number (PIN) is needed. Commonly, this PIN is mailed to the cardholder a few weeks following successful registration.

How to Keep Track of Prepaid Credit Card Spending

Just like a normal credit card, a statement showing the amounts of purchases made as well as fees and charges incurred on the prepaid card is made available to the cardholder online or mailed to the cardholder on a monthly basis, unless you opted to have it only online.  Depending on the bank or card issuing company, the statement may be free or may come with a monthly charge.

How Do I Get a Prepaid Credit Card?

Prepaid cards are relatively new to the Philippines. To get one, simply approach any bank and inquire at the service desk or you can search online for the offers.

Who can use a Prepaid Credit Card?

Anyone can use it! Even if you are 12 years old, since online shopping is getting famous, one of the ways teenagers can get their own stuff online is via a prepaid credit card. Easy and convenient and it makes sure that you only spend what you earn or save, if you are a teenager.

Alternatively, if you’re looking for a conventional credit card that fits your requirements, you can start comparing at our credit card comparison table.

The post The Prepaid Credit Card Alternative appeared first on iMoney.ph.

Money, the root of all evil, symbolizes status, security and capability. Fact is, even if it is not important to you, you need it, the reason that you come to work every day and the tool that helps you to live. Studies show, seven out of ten couples fight over money. In the Philippines there has been an increase of marriages gone wrong, as relived by movies and TV shows, having money problems as the biggest contributor. And you know why? Because we rarely talk about it, as a family we always see the head of the house the provider and just wait for the money to come in.

Some pointers for couples’ finance management:

Goals Establishing even before the Marriage

Talking about finances is both challenging and stressful, but this is why should talk about it because if you don’t it will bring you more trouble.  I know everyone would agree with me that it makes perfect sense that for you to be guided, you must have a vision. Establishing your goals can help you plan your way to get there. If your goal is as simple as living your marriage, debt free and have all your kids finished college with successful careers while living comfortably in the city or in the province, you can have it. It is not impossible!

Assign Roles

Traditionally, budgeting is done by the woman of the house but how about if the husband is the one doing all the budgeting since he is better at doing it. Remember that you are a team here! Both of you should be involved with the family finances; you cannot let him or her do all the work. One can do the budgeting and the other one can track the expenses. As they say, two heads is better than one.

As a Couple you are equals

If Jun earns P30, 000 and Jane earns P20, 000, Jun has to make sure that he shares 60% to the family’s expenses and Jane shares 40%.  Who earns bigger must not be an issue in the family finances. Couples should have an equal say on what direction to take the family to, what to prioritize, how much to save and what expenses to cut on.

Be Open

Marriage is always about sticking to each other at the end, no matter what happens. By opening up to your spouse of the things that bothers you financially or not, you could explore options that you can both work on. It is by good communication that great things are built.

Seek Counseling

Go to a counselor or to a common friend for advice if the two of you cannot agree on an issue. Do not let the argument stay with you overnight, but never ask for your relative’s take on the issue, it is but natural that there is bias. For the Pinoy, marriage is a sacred event, a union of two souls, found by love and tied to forever with their clan. I am not saying that this is bad, but you should if you can’t agree on an issue, it is always best to hear an independent take on the issue.

The post Couples on Marriage and Finances appeared first on iMoney.ph.

We often neglect to educate ourselves with the basics in almost big ticket purchase. We are giving away hard earned money and yet we are careless in spending it. At iMoney Philippines, it is my job to inform my readers on how they can wisely use their money.

It is a common scenario in a Filipino setting that they don’t trust banks because of its sneakiness. No wonder most of us are feeling shortchanged because we understood different things as should be stated on the contract we signed on getting the mortgage loan. Fear not, iMoney Philippines is here to save the day, here are some home loan ABCs that you may encounter in getting that mortgage, this is 100% sure to appear in the contract, whether it is in English or Tagalog.

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A disaster is a phenomenon that can cause damage to life and property and destroy the economic, social and cultural life of people (Source: Wikipedia).  Truthfully, a disaster can capture you off-guard and will just left you in the worst case possible.  And when I mean worst is that you barely can do anything about it.

Remember when Typhoon ‘Ondoy’ struck the Philippines back in 2009? A lot evacuated their property, had possessions ruined by the floods and lost family members. I remembered when I was back in Manila; I had some colleagues who applied for a salary loan for renovations or to buy appliances and furniture that got destroyed in the flood. It was thoughtful for the company to do that with no interest involved but I find it ridiculous to buy or pay for these things out of a loan. Don’t get me wrong, these renovations are needed but I did not need to have them through a loan. I don’t want to be in debt. I was fortunate enough to have a company that can lend me without any interest but this does not apply for everyone.

An Emergency Fund, just in case a disaster happens, if someone loses his or her job or if a calamity occurs, there is the fund that they can rely to. No matter of a hardcore planner you are, there are some things that you can’t really prepare for. Here are some examples of an emergency, let’s see if you can identity which is which:

Loss of a permanent job

Your son’s field trip

Hospital fees

School book fees

A vacation

Insurance cost

Renovation costs

Answers: Y,N,Y,N,N,N,Y

An emergency is a situation that poses an immediate risk to health, life, property or environment. People often neglect planning for costs that happens infrequently but foreseeable. Examples include payment of insurances and hospital fees that when they do happen, oftentimes we have not planned them or included it our budget. It should be made clear that an emergency fund is fund for your day to day activities caused by an unforeseen event.

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Mutual Funds started as the Eendragt Maakt Magt, translates to “unity creates strength” in The Netherlands by a Dutch merchant named Adriaan van Ketwich dating all the way back to 1774.  In which in 1822, King William I have also claimed that he opened the first formal mutual fund.

A mutual fund is a basket of money collected from different people, either an individual or a corporation, managed by a professional fund manager invested in stocks, bonds and money market securities. The idea of mutual funds is the strength of numbers it poses. Relatively, in the Philippines, even for as small as P5, 000 you can open a mutual fund.

There are actually two ways you can earn from mutual funds. One is through the income earned from dividends on stocks or interest on bonds and through capital gains when the fund’s Net Asset Value per share (NAVPS) is bigger than the purchase price when sold.

Advantages of Mutual Funds

Simple. You just have to find a provider and fill-out some forms and invest as low as P5, 000. And when you want them out of the market, liquidating them is easy.

Better. If you are not a fan of putting your money in a savings acount, Mutual Fund is for you because your money will grow bigger if put in this for of Investment. Point of caution though that there are no guaranteed returns.

Fund Manager. This is the exact equivalent of letting your money work for you because you have someone trading for you and is a professional at what he do. So if you are really new to investing and want a dip on the investment pool, mutual funds are a great way to start.

Diverse.  In theory, a mutual fund is a basket full of ingredients. And you choose how you want these ingredients get cooked by your chef, the fund manager. But then again, you have to wait for your desired results.

Disadvantages of Mutual Funds

Costs. Since you are getting some professional services (admin fees) there is some costs involved like processing fee and exit fees. Usually this ranges from 1-5% of the money you put in. And since getting in to the Mutual Fund game is easy and affordable, when the fund is performing well and a lot of money comes in. Normally, fund managers would have a hard time where to put the money.

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Ang Payday loan ay tinatawag din na Payday Advance o Cash Advance kung saan ang unsecured loans ay may mas maikli na panahon para bayaran. Kadalasan ang pagbabayad ng buo nito ay sa susunod na sweldo ng nag-apply. Karaniwan na tinitingnan muna ng nagpapautang kung ang uutang sa kanila ay may trabaho bago magpautang.

Paano Gumagana ang Payday Loan?

May mga requirements upang mapatunayan ang status ng trabaho ng nag-aapply na customer. Depended ito sa bawat nagpapautang. May mga lenders na nirerequire ang bank statement o pay stubs. Ang iba hindi na nagveverify kaya mas tumataas ang interest rate. Kailangan mo magbigay ng postdated check para macover ang buong amount ng uutangin kasama ang pinag-usapang interest.

Sa araw ng sweldo, kailangan na bayaran mo ang inutang sa lender. Kapag hindi, pwede gamitin ng lender ang postdated check na ibinigay mo para mabayaran ang utang. May mga websites din na may online application. Ang pinagkaiba ay ang proseso ng pag-aapply at ang pagtatransfer ng pera sa’yo. Idedeposit mismo ng lender ang pera na inutang mo sa bank account.

Bakit Kailangan ng Payday Loans?

May mga oras na bigla mo kailangan ng pera kapag may emergency. Kung wala kang kapamilya o kaibigan na pwede magpautang ng pera, ang payday loans ay pwedeng gamitin para sa ganitong sitwasyon. May mga tao na ginagawa ito para sa mga pang araw-araw na gastusin ngunit ito ay mali dahil mataas ang interest rate.

Mga Risk ng Payday Loans

Kapag ikaw ay kukuha ng home loan, dapat mo i-consider ang mataas na interest rate. Posible na akala mo kaya mo ang mataas na interest sa maikling panahon dahil parang hindi naman ganoon kataas. Kaso may mga tao na hindi nakakabayad ng utang. Mas magandang alternatibo ang personal loan.

Ibang Alternatibo sa Payday Loans

May mga ibang alternatibo sa Payday Loans. Kung may sasakyan ka, pwede mo gamitin ito para kumuha ng personal loan na mas mababa ang interest rate. Ang home loan din ay may mas mababang interest rate kumpara sa payday loans. Ang installment period ay mas mahaba kaya mas kaonti ang tsansa na hindi mo ito mabayaran. Pwede mo rin gamitin ang iyong credit card. Sa ngayon wala kaming inooffer na payday loans dahil sa mataas na interest rate.

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Plano mo ba kumuha ng mortgage loan? May siyam na karaniwang pagkakamali ng mga Pilipino lalo na kapag sila ay mag-aapply sa unang beses. Basahin upang malaman ang dapat gawin.

Ang mga bangko ay madalas magoffer ng mortgage loans sa mga kayang bumili ng bahay. Ang requirement nila ay qualified ka sa pagkuha ng mortgage loan. May amortization na kailangan bayaran mo ng 30% galing sa gross monthly income at may pera ka na sapat para sa down payment. Kung hindi ka qualified, pwede nila i-reject ang iyong application. Kaya bago ka mag-apply siguraduhin muna na qualified ka na mag-loan sa bangko.

Pagpapatagal ng Mortgage Loan Application

Karaniwan inaabot ng sampung araw hanggang dalawang buwan bago maapprove ang loan, depende sa kaso ng mangugutang. Sa totoong buhay, kung nakapili ka na ng disensyo ng iyong bahay at nakabayad ng down payment, tsaka lang papasok ang gastos ng pagpapagawa ng mismong bahay. Kadalasan, hindi na sapat ang iyong naipon na pera. Maraming paper work at finance checks sa bangko na kinakailangan sa application process. Ang delayed application ay hindi magandang idea.

Lowest Interest Rate

Malaki ang iyong uutangin na pera. Syempre mas gugustuhin mo kuhanin yung may pinakamababang interest rate. Dapat ito ang iyong prioridad ngunit huwag mo rin kalimutan na isaalang alang ang margin of financing, lock-in period at pagpili ng branch ng bangko na uutangan.

Pagpili ng ay mababang interest rate at mas maikling term ng re-pricing

Ang dapat ay piliin mo yung may pinaka ok na interest rate at short term repricing. Kadalasan ito ay may mga promotional basis. Ang interest rate ay depende sa market interest rate (na mas mataas sa given rate). Dapat palaging long term ang isipin bago magdesisyon kung alin ang iyong pipiliin.

Pagdedeklara ng finances

Kadalasan hinihingin ng mga bangko sa Pilipinas ang iyong credit history tulad ng credit card/s, annual salary and properties owned or loaned na karaniwan parte ng normal na proseso. Ang hindi alam ng consumers ay ang mga bangko ay nagkukumpara ng records sa ibang financial institutions. Kapag mali ang iyong detalye na isinumite, posibleng i-reject ng bangko ang iyong aplikasyon.

Hindi Kasama ang Home Loan Fees at Charges

Ang home loan may fees, charges at home insurances na kasama na minsan hindi alam ng mga baguhan sa pagpili ng bahay. May mga bangko na inaabsorb ang ilang charges pero ang iba hindi. Karaniwan ang mga home buyers ay may kaonti or saktong pera lamang kay mas maganda na kabisado o alam mo muna ang mga detalye ng pagutang sa bangko bago bumili.

Para mas maintindihan ang mga fees at charges na kasama sa pagbili ng property at pagutang sa bangko, basahin ang aming artikulo sa Guide for Filipino’s on Home Buying Fees and Charges.

Baliwalain ang Insurance

Kadalasan ito ay hindi inimaalam o kinukuha dahil mahal. Pero ang insurance ay importante kung uutang ka. Ang mga bangko ay nagrerequire ng fire insurance at mortgage redemption insurance (MRI) na essential kung may hindi magandang mangyari. Ang MRI ay life insurance policy ng bangko kung sakali man na pumanaw ng umutang.

Makipag-tawaran

Oo, pwede makipagnegotiate kung ikaw ay kukuha ng home loan. Maraming pwede options na mas makakabuti para sa iyo upang makakuha ka ng magandang loan sa bangko.

Hindi Pagbabasa ng Terms at Conditions

Sa iMoney, sinasabi naming na dapat palaging basahin ang fine prints sa kahit anong bagay na tungkol sa pera. Kasali dito ang mortgage loan agreement. Kung wala kang kapasidad para umutang, dapat ang loan officer ay sabihin sa iyo ang lahat ng kailangan pag-usapan (tulad ng loan amount, interest rate, installment amount, loan period, margin of finance, lock-in period, early settlement penalty and fees & charges).

Ang general rule: Kung hindi nakasulat sa agreement, hindi ito pwedeng mangyari. Kung may lock-in period ng tatlong taon ang iyong home loan, dapat ito ang banggitin sa iyo kausap mo na bank officer.

The post Mga Kadalasang Pagkakamali sa Mortgage Loan appeared first on iMoney.ph.

Ayon sa mga eksperto, isa sa mga pinakamahalagang aral na maibabahagi mo saiyong anak ay ang paghawak ng pera. Marami na ang nagsabi na para ikaw ay umangat, “mas maaga mas mabuti”, maaaring sa larangan ng sports, akademiko at pinansyal. Eto ang ilan sa mga aral aking tinutukoy.

Ituro sa iyong anak ang Halaga ng Pera

Mahirap kumita ng pera sa ating bansa. Sa katunayan, isang milyon sa atin ang umaalis kada taon para maging Overseas Filipino Workers para sa kinabukasan n gating mga mahal sa buhay. Maaaring nagbabago na ang ating panahon ngayon pero mas maiintindihan n gating mga anak kung sila ay ating isasama sa pagdedesisyong ng pamilya. Sasabihin mo siguro na, “mga bata pa sila”. Oo, bata pa sila at kultura natin na hindi sila isama sa mga usaping pinansyal dahil responsibilidad natin ito bilang mga magulang. Ngunit, responsilidad din natin maging magandang impluwensya sa kanila at ipakita an gating realidad.

“For the things we have to learn before we can do them, we learn by doing”

- Aristotle

Mahirap kitain ang pera, pero ang realidad maiintindihan lamang ito n gating mga anak kung kailan sila na mismo ang nagpapakahirap kitain ito.

Ituro sa iyong anak ang konsepto ng Banko

Bigyan sila ng allowance at magbukas ng savings account. Sabihin sa kanila na 20% porsyento ng kanilang allowance ay mapupunta sa kanilang savings account, ang mapupunta ditto ay magagamit sa hinaharap at 20% porsyento muli para mapakita na hindi nila ito maaaring gastusin o gamitin dahil sa buwis na binabayad natin sa gobyerno.

Halimbawa, kung nagbibigay ka ng 100 piso, kausapin ang iyong anak na ibigay ang 40 piso para maramdaman nila kung ano ang nararamdaman ng matatanda kapag nakukuha nila ang kanilang sweldo. Sa pamamagitan nito, maipapakita sa inyong mga anak kung ano ang nangyayari sa mundo at kung paano tumatakbo ang mga bagay-bagay dito.

Tip: Ibigay ang kanilang allowance sa maliliit na halaga, pwedeng tig-bebente para ma enganyo sila sa pagtitipid.

Ituro sa iyong anak ang konsepto ng Pamumuhunan at Pag-utang

Mahirap ba? Hindi naman ito tungkol sa pamumuhunan sa stock market! Maaring kasing simple lang ito kung paano gumagana ang bonds ng gobyerno, kung paano ito kumikita sa paglipas ng panahon at paano kumikita ng pera ang karamihan dito. Ganito din ang konsepto ng paghiram ng pera, magandang halimbawa ay kapag mayroon silang gusting bilhing laruan, maari kang magpatong 1% na interes sa hihiramin nilang pera. Makikita ng inyong anak kung paano gumagana ang ‘compounding interest’ sa parehong konsepto.

Ang pagturo sa ating mga anak tungkol sa pera ay mahirap at madai, sa kanilang paglaki, para silang mga ‘sponge’, dahil lahat ng ituturo mo ay kanila kagad nilang magagaya. Pero sa katunayan, ang pagpigil o an gating disiplina sa sarili ang maaaring maging balakid sa atin dahil mahirap mag control sa totoo lang. Ang pagtuturo ng tungkol sap era ay umpisa lamang pero sa lahat n gating gusting makamit. Ang iyong pag-uugali ang pinakamahalaga.

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Thinking about getting off your credit card but still need a means to pay by plastic?  With a prepaid card, you can enjoy all the benefits of a credit card but with the added advantage of being able to control your spending using prepaid credit cards’ pre-loading mechanism.

If you need more reasons to switch over to a prepaid credit card now, check out these six key advantages:

No Income Document Required:

The greatest proposition of a prepaid card is that anyone can get it.  There is no submission of salary slips or EA forms, which is the standard practice for credit card application.  This allows people earning minimal incomes, especially fresh grads that have just entered the workforce, to enjoy the benefits of paying with plastic even though they may not yet qualify for the minimum income requirement of a standard-tier credit card.

Gives You Better Spending Control:

Just like a debit card, a prepaid card only allows you to make purchases with the money you already have.  Say you want to buy an item that costs PHP1000 with a prepaid credit card loaded only with PHP500, you simply wouldn’t be able to. Because of this, a prepaid card makes for a great instrument to control your spending and ensure that you’re not splurging beyond your means, this is very true because it gives you the exact same feeling of paying for stuff with cash.

No Debt Trap from Towering Interests:

Due to massive interest rates as high as 44.0% p.a., as well as the ability to make purchases on credit, the potential of accumulating a towering debt from credit cards is very real.  A prepaid credit card, on the other hand, does not allow you to make purchase on credit and hence has no concept of “interest”, which mitigates all risks of you getting into debt issues from its use.

Offers Greater Security for Your Money:

All financial card products have the potential of being misused via fraud and identity theft, and this is no different for a prepaid card.  But compared to a debit card (which is linked to all the money in your saving account) and a credit card (which usually has five-figure credit limit); a prepaid credit card offers you greater protection on virtue that you only stand to lose the money you’ve pre-loaded.

Works Just Like a Credit Card:

With the exception of the need to pre-load money, a prepaid card works just like a credit card.  This means you’ll be able to pay for your purchases at any outlets displaying the Visa or MasterCard sign (depending on the type of prepaid cards you have), be it locally or overseas.  Best of all, prepaid cards can also be used for online payments. This is like every girl’s fantasy.

May Also Reward You Just Like a Credit Card:

Due to increasing competition in the financial sector, some banks now offer prepaid credit cards that come with point-based reward programs similar to most of the credit cards in the market.  By accumulating points you acquire from your prepaid card transactions, you can redeem gifts and vouchers.

Want to get a prepaid credit card?  Most banks in Philippines offer it. To get one, simply go to the bank website and apply or you can do it manually, go to them the old fashioned way, go to the bank and inquire.

Alternatively, if you’re looking for a conventional credit card that fits your requirements, you can start comparing at our credit card comparison table.

The post 6 Things that makes a Prepaid Credit Card appeared first on iMoney.ph.

In the Philippines, many credit cards now come with a 0% Installment Plan – a repayment scheme that allows you to repay credit card purchases made at selected merchants by installments and be charged at absolutely no interest.

In this article, we reveal some of the things you might need to take note of if you’re planning to use a 0% Installment Plan to make a purchase.

Make Sure It Really Is “Zero Percent (0%)”

In an ideal world, a 0% Easy Payment Plan means you pay absolutely no extras on your purchase.  In practice, however, it is not uncommon (though not always true) for Filipino consumers to be charged an upfront administration / installation fee by the merchants offering the 0% Installment Plan.

So before activating a 0% Installment Plan, make it a point to inquire with the merchant if such additional costs exist.  For a big-ticket item at, say, PHP100,000, a 3% service charge means you’re paying PHP3,000 extra right from the start!  This in turn defeats the whole purpose of engaging in a repayment plan where you supposedly pay “0% interest”.

Ascertain That the Zero Percent (0%) Interest Applies to Your Purchase

Despite what many people think, 0% Installment Plans usually do not cover everything.  Most of the time, the banks have their own lists of participating merchants offering 0% Installment Plans for the credit cards it issues; and every merchant in turn has its own terms and conditions binding the use of 0% Easy Payment Plans in its outlets.

Example: BDO credit cards are only able to give you a 0% installment plan if you are buying from an SM Department Store and Groceries for a minimum amount of PHP3,000 legible for 3 month installment.

Simply put, you wouldn’t be able to just walk into your favorite outlet and expect to sign up for a 0% Installment Plan, without first making sure that the outlet (i) does support the said Plan on your credit card, and (ii) does support the said Plan for the specific amount of your intended purchase.

Take Note of Late Payment Rules and Other Policies Imposed by Your Credit Card  

When you sign up for a 0% Installment Plan, bear in mind that you are expected to service the installments promptly and strictly… probably more so than a standard credit card transaction.

With most banks, failure to service your 0% Installment Plan installments would result in:

- Automatic revoke of your 0% interest benefit (where you’ll end up paying the standard credit card interest rates at an average of 3.50% per month), or

- Termination of your installment plan (where you’ll be expected to settle the outstanding amount in full)

… Either way, the impact on your financial state is going to be drastic and unpleasant.

Additionally, take note that some banks do charge a fee for early settlement of outstanding amount on a 0% Installment Plan, whilst others don’t.  If early settlement is an option you may wish to take, it’ll be to your interest to check this out with your bank.

Understand the Influence of 0% Payment Plan on Your Spending Behavior

There are always two sides to a story when it comes to financial instruments.  With a 0% Installment Plan, the very convenience that enables you to make a vital purchase (such as buying a computer you absolutely need for your work) could also entice you to spend way beyond your means (such as buying the very same computer but at two specs higher than what you need).

The common pitfall when it comes to a 0% Installment Plan is that most people tend to look at the smaller installment amount rather than the larger full purchase amount.  Whilst PHP 10,000 for that unnecessarily large TV might sound way too expensive in lump sum; you could be enticed to make the purchase if you choose to evaluate the purchase based on PHP 500 per month for 20 months.  When making a purchase using a 0% Installment Plan, make sure you always have the bigger picture (sum) in mind!

Love this article?  You might also be interested to find out more about why should you get a credit card.

The post 0% Installment Plans: Things You Should Know appeared first on iMoney.ph.