Comparing a 7.83% fixed mortgage quote in Manila

G

GoodAnchor

Mortgage adviser
Established
The lender presents this as a competitive long-term offer, but I am not yet convinced the headline figure tells me enough. The Manila purchase price is about PHP 75,110,000, and the quote is 7.83% fixed for 15 years. Once the upfront charges and applicable LTV band are included, it no longer resembles the lower rate used in the advertising.

How would you put competing Philippine offers on an equal footing? I want to account for payments, initial and recurring charges, and the balance remaining at likely exit dates. I am also checking whether the loan can genuinely move to another property, what happens if rates reset, and what penalties apply to partial or full early repayment.
 
One clarification: I don’t want to assume that refinancing will be cheap or even attractive later. I’m trying to compare the offers over a realistic holding period while also testing whether the monthly payment remains comfortable. What details should I request so the lenders’ figures are genuinely comparable?
 
Ask each lender for the same loan amount, amortization schedule and payment dates, then make a simple cash-flow table. Include every fee due upfront, recurring charges, monthly payments and any final balance at the end of your chosen comparison period. APR can help, but only when the lenders calculate it on the same basis.
 
The missing fact is your likely holding period. If you expect to keep both the property and mortgage for all 15 years, total cash cost over that period is meaningful. If a sale or refinance after five years is plausible, compare five-year costs and the outstanding balance then. Also ask whether “portability” means transferring the loan automatically or applying again under future lending criteria.
 
Agreed on the holding period. I’d also request the early-repayment wording in writing, including whether partial prepayments and a full payoff are treated differently. A small difference in headline rate may matter less than a large arrangement fee if you exit early. Don’t omit the opportunity cost of the upfront fees from your own comparison.
 
Using one likely holding period is simple, but it can give a false sense of accuracy; testing every imaginable outcome, on the other hand, quickly becomes unhelpful. I would settle on three practical cases: retain the mortgage for the full term, sell or repay early, and refinance at the end of the fixed period. For the refinance case, use several possible future rates. That keeps the comparison manageable without letting an optimistic refinancing assumption decide which offer appears cheapest.
 
Monthly affordability deserves a separate stress test from total cost. You need the actual loan amount and amortization term before the payment can be assessed; the PHP 75,110,000 purchase price alone is not enough. Compare the quoted payment with one calculated at higher future rates, particularly if any balance can reset after the fixed period.
 
My practical next step would be a one-page request sent identically to every lender: loan amount, LTV tier, fixed-rate duration, full amortization term, monthly payment, all upfront and recurring fees, balance at years five and fifteen, prepayment charges, and portability conditions. Then confirm locally how each lender defines its APR or equivalent figure. That should expose whether 7.83% is genuinely competitive or merely presented differently.
 
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