A. Legal and Regulatory Framework
A.1 Legal and Regulatory Framework
| Variable | End of 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| Basis of the legal system: Civil, Common, Islamic, Other? (Describe) | Blend of common law and civil law | A.1.1 | |||
| Are there specific laws that deal with mortgages? | Yes | A.1.2 | |||
| Registration/Transfer of titles: | A.1.3 | ||||
| Does the law clearly define different types of property rights? | Yes | Country Editor | A.1.3.1 | ||
| Are property rights easily transferable? | Yes | Country Editor | A.1.3.2 | ||
| Identify barriers to the registration/ transfer of property title. | Not available | A.1.3.3 | |||
| Typical number of days needed for the transfer of title | 35 | WDI | A.1.3.4 | ||
| Can liens be effectively enforced? | Yes | Country Editor | A.1.4 | ||
| Number of months until lender acquires the property in case of foreclosure on a single-family residential property? | 12 Months | Country Editor | A.1.4.1 | ||
| Cost of foreclosure process as a percentage of the value of a typical loan? | 10% | Country Editor | A.1.4.2 | ||
| Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.) | Legal constraints/ claims/other liens/court processes | Country Editor | A.1.4.3 | ||
| Are there legal constraints on the types of mortgage products that are permitted? | Yes | Country Editor | A.1.5 | ||
| Are there legal constraints on mortgage features? | Yes | Country Editor | A.1.6 | ||
| Interest rate caps | No | Country Editor | A.1.6.1 | ||
| Loan-to-Value cap | No | Country Editor | A.1.6.2 | ||
| Payment-to-Income maximum | No | Country Editor | A.1.6.3 | ||
| Other | Yes - Other liens/claims (third party claims) | Country Editor | A.1.6.4 | ||
| Are there consumer rights for mortgage lending? | Yes | RA 3765 | A.1.7 | ||
| Are there disclosure requirements for mortgage lending? | Yes | RA 3765 | A.1.8 | ||
| Is there specialized legislation covering: | A.1.9 | ||||
| Issuance of covered mortgage bonds | Yes | RA 8799 | A.1.9.1 | ||
| Issuance of RMBS | Yes | RA 8799 | A.1.9.2 | ||
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
| Variable | End of 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidized funding sources for mortgage lenders? | Yes | Research | B.1.1 | ||
| Labor or other tax funds for mortgage lending | Yes | Pag-IBIG Fund | B.1.1.3 | ||
| Loss and/or cash flow guarantees for RMBS | Yes | Home Guaranty Corporation | B.1.1.5 | ||
| Other | Yes | Home Guaranty Corporation | B.1.1.6 | ||
| Is the lending side of the housing finance system subsidized? | Yes | Research | B.1.2 | ||
| Shared credit risk through public/private mortgage insurance | Yes | Home Guaranty Corporation | B.1.2.1 | ||
| Guarantees for mortgage loans | Yes | Home Guaranty Corporation | B.1.2.2 |
B.2 Subsidies to Households
| Variable | End of 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidies to households on housing finance? | Yes | Country Editor | B.2.1 | ||
| Interest rate subsidies by special government funds | Yes | Country Editor | B.2.1.1 | ||
| Buy-down of monthly/interest payments | Yes | Country Editor | B.2.1.2 | ||
| Down-payment subsidies | No | Country Editor | B.2.1.3 | ||
| Subsidies to savings for mortgage loans | No | Country Editor | B.2.1.4 | ||
| Mortgage interest deductibility from income tax | No | Country Editor | B.2.1.5 | ||
| Other | Yes | Pag-IBIG Fund | B.2.1.6 | ||
| Reach of subsidies in 2.1.1 to 2.1.4 ? | B.2.2 | ||||
| What is the highest income decile targeted? | Not available | B.2.2.1 | |||
| What is the lowest income decile targeted? | Not available | B.2.2.2 | |||
C. Taxation
| Variable | End of 2022 | End of 2021 | End of 2020 | Sources | Var ID |
|---|---|---|---|---|---|
| What taxes apply to Residential Real Estate? | C.1 | ||||
| Tax on property (home-owners) | Yes | RA 7160 | C.1.1 | ||
| Property transaction taxes (purchase/selling) | Yes | National Internal Revenue Code of the Philippines, SEC. 196 | C.1.2 | ||
| Mortgage transaction taxes | Yes | National Internal Revenue Code of the Philippines, SEC. 195 | C.1.3 | ||
| Tax on mortgage interest pmts | No | National Internal Revenue Code of the Philippines | C.1.4 | ||
| Tax on capital gains on property | Yes | National Internal Revenue Code of the Philippines, SEC. 24.D | C.1.5 | ||
| Other | Yes | C.1.6 | |||
| Are there tax benefits on rental properties? | No | PwC | C.2 | ||