Comparing a 3.62% two-year fixed mortgage quote in Manila

[EarnestBrick]

The 3.62% headline looks attractive. My concern is whether it remains competitive once I price the loan for the period I am actually likely to keep it.

The property in Manila is around PHP 17,400,000, and the quote fixes the mortgage for two years. Fees and the applicable loan-to-value band make the initial comparison less straightforward than the rate suggests. Should I rank offers by the cash paid over 24 months plus the remaining balance, or is APR still useful here?

I also want to test two outcomes: refinancing after two years and being unable to refinance when the fix ends. Before choosing, I plan to get the arrangement fee, repayment charges and portability conditions in writing. Is there another cost or assumption that could reverse the result?

 

[measureTheFinch]

For a two-year decision, I’d compare total payments and all upfront fees over those same two years, then include the outstanding balance at the end. APR can be misleading if it assumes you keep the mortgage much longer than you expect. I would also run a separate scenario where the rate resets and you cannot refinance immediately.

 

[slate.curious]

What loan amount and loan-to-value tier does the 3.62% actually apply to? The PHP 17,400,000 purchase price alone is not enough to compare offers. Also ask whether the arrangement fee is paid in cash or added to the loan, as adding it changes both the balance and interest cost.

 

[slate.curious]

The portability details create another question: does the lender merely allow a transfer in principle, or would the replacement property and affordability be assessed again? If fresh approval is required, I would assign portability little value in the comparison.

For a two-year fix, the narrower compromise is to focus first on repayment charges and the cost through month 24. Ask each lender for those figures under the same loan amount, then treat portability as a secondary benefit rather than a reason to accept a more expensive offer.

 

[drawsAndKey]

Build a simple lender-by-lender sheet with: cash required at completion, monthly payment for 24 months, fees, interest paid, balance after month 24, early-repayment cost, and the payment after a plausible rate reset. Then stress-test the monthly figure rather than assuming refinancing will be available on favorable terms. The cheapest two-year cost is not necessarily the safest option if the reset payment would strain affordability.