Owning a house and lot is never too easy; it will go through countless processes before you even get to live in your own home. Luckily, there are what we call “Home Loans,” wherein you can borrow money either from Pag-IBIG housing loans or a private bank that serves as an assistant for you to acquire your dream house and lot. But it doesn’t just end there, and there is what we call “ Mortgage Redemption Insurance,” sounds unfamiliar? Did you ever wonder what will happen to your Home loan if you die or you get permanently disabled due to unforeseen circumstances? Let me Introduce to you MRI or the Mortgage Redemption Insurance. Well, it’s basically the one who will be paying your insured’s outstanding mortgage balance if ever something happens to you so that the borrower’s surviving family wouldn’t carry the burden of paying your loan. To better give you a clear answer, let’s break it down to the Frequently asked questions regarding MRI’s shall we?
WHAT IS MORTGAGE REDEMPTION INSURANCE?
Insurance is divided into several categories depending on your needs; there are life insurance, health insurance, property insurance, fire insurance and many more. These can be used as your Mortgage Redemption Insurance when applying for a Home Loan in Pag-IBIG or Private Banks. An MRI is a type of insurance that will cover the remaining or whole balance from the home loan in case of sudden death, or permanent disability happens to the borrower. This will help in avoiding unwanted dues to be paid by the family of the borrower.
WHY DO WE NEED IT?
Before applying for a home loan, you will be asked to get an MRI or fill out the MRI Form as it is one of their borrowers’ requirements. Some people see this as an expense because of the current bills that they have to pay, but if you think of it, you are saving your family for a much more significant cost if you don’t acquire an MRI. Getting a cheaper/less premium life insurance won’t be your escape root from having fewer expenses in the future. The MRI should be equal to the amount you are going to borrow from Pag-IBIG or a Private Bank, so if I were you, choose the one that will indeed protect you and your family from future damages. If you have an existing life insurance policy, you can assign your policy as your MRI.
Keep in mind that Mortgage Redemption Insurance only covers the balance from your loan; it does not keep you safe from any damages that will happen to your property. Other insurances will take care of those things, like Property Insurance that will help you in recovering from any natural disaster that may ruin your home. If you were robbed, vandalized, and many other instances that include human behavior, Home Insurance is the right thing for you. Lastly, if you want the things in your house to be covered from theft, there is Content Insurance that will take care of those things.
Now, let me give you a quick walkthrough of where this Mortgage Redemption Insurance takes place when applying for a housing loan at a private bank; here is a step-by-step guide in applying at a private bank.
KNOW WHAT TYPE OF LOAN
Of course, before entering any contracts, you should know first what you will be entering into. There are two types, first is the Conventional Home Loan, wherein you will have to pay a certain amount within a fixed period. If you are fond of planning ahead for your expenses, well, this type suits you. The next one is the Flexible Home Loan, which is the most commonly offered in banks. With this, you will have the chance to have lower interest rates depending on the amount that you are going to deposit, which will be really good for your savings in the future.
Most banks have similar requirements when it comes to applying for home loans. The first thing that they want to know is your Age. You must be 21-65 years old to be able to see that you have the mental capacity to go into a contract. Next is the Income; of course, banks want to know if they will be secured from fraud. That’s why they would like to see if you will be able or you have the capacity to pay the amount you are going to borrow. Lastly is the Nationality; if you are an OFW, you would have to submit some files like your Certificate of Employment from the POEA. If not, then being a legitimate Filipino is all that they would require.
This is where the Mortgage Redemption Insurance comes in. But of course, aside from this, you will be needing the necessary forms like the application form, valid ID’s (Passport, Driver’s License, Senior Citizen’s ID, PRC, SSS, GSIS, etc.), Proof of income (Certificate of Employment, Income Tax Return, Mortgage Redemption Insurance Form, etc.), and Collateral Documents (Appraisal Fee, Cost Estimate, Contract to sell or reservation agreement/ Deed of absolute sale, Floor or building plan/ vicinity map, Occupancy Permit, Statement of Account, Tax Clearance, Declaration, and Receipt, Transfer Certificate of Title (TCT)/ Conditional Cash Transfer.) and other documents required by your trusted bank.
KNOW YOUR TERMS AND INTEREST RATES
After completing the requirements as mentioned above, you should know what the terms and conditions are and the interest rate of your loan would be. This will be an integral part of getting your home loan because this will determine how well you budget your finance and what will be your repayment method. You should consider the timetable wherein you prefer to pay and the loan amount that will be best for you. If you want, you can also talk to your trusted financial adviser about this and know his thoughts so that you will have a strategic approach to your home loan.
After all of these, you may now visit your trusted bank and talk to them regarding your preferred home loan! The approval process might take a while, but it will all be worth it in the end; after all, patience is a virtue, right? And always remember, having premium insurance (based on age and the outstanding loan balance) will be an advantage for you not only for yourself but for your family also. Oh, and don’t forget to pay your dues and be diligent when you availed of the home loan so that you can enjoy the benefits of being a good payer!
Now with these being said, you are one step closer to having your future house, and what better way to make that dream come true by having your own home and lot at BRIA Homes that offer Affordable and Quality places and lots with over fifty housing developments in our country. They boast their top-of-the-line amenities together with a diverse and secured community; there is nothing more you could ask for! BRIA Homes offer a wide variety of banks that you could choose from when getting a home loan, making it even easier for you to get your dream house without breaking a sweat. The steps mentioned above and much more information on how you could start having your dream BRIA home can be seen on their website. Now that you are equipped with this information, you can now start planning your future with BRIA homes!