Overview
Our No Cash Out For Charges (NCOC) is a new feature of Business Mortgage Loan. No need to pay upfront fees and charges in cash!
It’s a financing option that allows you to include first-year insurance premiums, mortgage registration fees, and other bank fees in the loan. There is no cash out in taking the loan instead, all fees and charges are to be deducted from the loan proceeds.
*Appraisal fees are not included and must be paid upon submitting your Business Mortgage Loan application.
Upfront fees and charges included in the loan amount:
- Documentary Stamp in REM and PN / ULAMA
- Mortgage Registration Fees
- Notarial Fees on REM, PN and for Continuing Surety Agreement (for corporate accounts), all other notarial fees needed for the accounts
- Processing Fees
- Cancellation Fees
- First year premium for all applicable insurance (MRI, CARI, Fire Insurance, Heirs bond and Surety bond).
- Project percentage completion report (PPCR) inspection fees (for construction loans)
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Features and benefits
Affordability
Take out a Business loan with no upfront cash out, saving you money that you can use for your other financial priorities.
Convenience
No need to do the manual work of paying your fees in cash, bank fees will be covered by assigned NCOC Loan amount.
Hassle-Free
Speeds up loan availment since no need for client to settle any upfront fees and charges.
Timesaving
Receive your loan proceeds right away as you don’t have to wait for your bank fees to be paid.
Frequently asked questions
What is BML No Cash Out for Charges (NCOC)?
NCOC loan amount shall be the original loan amount inclusive of the total computed bank fees assigned to the borrower that will cover the required mortgage fees and charges, including the 1st year applicable insurance premiums (excluding premium for endorsed insurance policies).
Appraisal fees is not included and must be paid upon submitting your Business Mortgage Loan application.
Who can apply for a BML NCOC?
Anyone can apply for the BML NCOC provided they meet the eligibility and document requirements for a Business Mortgage Loan. Make sure to inform your loan account officer that you are interested to avail of this loan option.
How will I know if I qualify for a BML NCOC?
All loan purposes shall be applicable except when policy LTV cannot accommodate for cases such as loan proceeds to be remitted in full to a third party (accredited developer, seller, bank takeout, etc.)
Policy LTV cannot accommodate, for cases such as loan proceeds to be remitted in full to a third party (accredited developer, seller, bank takeout, etc.)
What bank fees and charges can be included in the BML NCOC Loan Amount?
The following fees and charges are included in the Home Loan All-in Financing loan amount:
- Documentary Stamp Tax on REM and PN / ULAMA
- Mortgage Registration Fees
- Notarial fees on REM and PN
- Processing Fee
- Cancellation Fee
- Project Percentage Completion Report (PPCR) Inspection fees (for construction loans) Fire Insurance, CARI, Mortgage Redemption, Heirs bond and Surety bond and Insurance premium for the first year Appraisal fee for regular loan is not included in the NCOC
*Appraisal fees are not included and must be paid upon submitting your home loan application.
How does BML NCOC works?
No need to pay bank fees upfront for your business mortgage loan. NCOC loan shall be assigned to client to cover all required mortgage fees and charges including the 1st year applicable insurance premiums (excluding premium for endorsed insurance policies). It shall be deducted from the loan proceed.
NCOC loan amount – shall be the original loan amount inclusive of the total computed bank fees. Estimated at 3% of loan amount.
Below is a sample illustration of a BML NCOC Loan Amount:
| Appraised value of property | ₱4,000,000 |
| LTV (max BML MRAC, DIR <30%) | 80% |
| Original Loan Amount | ₱3,200,000 |
| Estimated as (3% of the loan amount) | ₱96,000 |
| NCOC Amount | ₱3,200,000 |
| Net Loan Proceeds | ₱3,104,000 |
*Loan to Value: 80% of appraised value subject to borrower Debt to Income Ratio (DIR) not to exceed 30% • 70% for DIR >30% but not exceed 40%.
How to apply?
1. Apply through:
- Accredited Developers
- Online Application Form or Inquiry Form
- Download Business Mortgage Loan Application Form together with the requirements and submit at a branch near you.
2. Receive SMS on Application Status
3. Confirm Approval Details via email
4. Sign loan documents
5. Open a Security Bank account
6. Pay bank charges (not applicable to BML NCOC)
7. Submit documents for loan release
8. Receive your loan proceeds for your business