Real Estate Loan

A loan facility designed to finance the acquisition of real estate property, house construction, renovation of existing property or home improvement, and refinancing of real estate loan obtained from banks or other financial institutions; proceeds thereof shall be payable to the seller/developer/borrower in accordance with the intended purpose.

The purpose of the loan may be a combination of the following:

a. Purchase of real estate property such as but not limited to:

• a fully developed residential, commercial or industrial lot;
• an existing house and lot or townhouse;
• a condominium unit ready for occupancy;
• a property subject for improvements funded by the loan; or
• agricultural or farmland;

b. Home development or improvements on an existing property owned by the member-borrower other than the one being purchased or improved;

c. Construction or completion of a building on a lot owned by the member; and/or

d. Refinancing of real estate/housing loan obtained from banks or other financial institutions.

Interest and Term

Below are the Nominal Interest Rates per term as of October 1, 2025, approved by the Board of Trustees. Interest is computed based on the diminishing balance of the loan.

Effective interest rate (EIR) is the actual interest rate the borrower pays on the loan after taking into account fees/charges (e.g. documentary fee, filing fee) incidental to the loan availment.

*Assumed Loan Amount is P1,000,000.00. Appraisal and government fees are not yet considered on the sample EIR computation.

Loan Amount

The maximum loanable amount shall be equivalent to seventy percent (70%) of the fair market value of the real estate property offered as collateral on first mortgage, provided such will not exceed the borrower’s available SBL and the resulting paying capacity must be compliant with the THP policy of his/her corporate member/employer, or in the absence thereof, the minimum THP policy of the Association.

The borrower shall shoulder the equity portion equivalent to at least thirty percent (30%) of the fair market value of the collateral offered.

The fair market value of the property shall be based on the Appraisal Report provided by the accredited property appraiser or an in-house appraiser (i.e., authorized MESALA employee) allowed to perform such.

For house construction, the initial amount to be released shall be based on the land value while succeeding releases shall be based on the percentage of the progress of completion as assessed by the authorized appraiser. Additional loan may be granted provided that the combined total amount of the loan to be approved including the amount previously

Requirements for computation of paying capacity

• Latest 1month payslip
• Proof of other income for those filing with family income

Requirements for property valuation

• Contract to Sell from the Developer OR
• Property Appraisal
  • Duly accomplished Authority to Inspect form
  • Photocopy of TCT/CCT
  • Photocopy of current year’s Tax Declaration
  • Photocopy of current year’s Tax Clearance
  • Photocopy of current year’s Tax Receipt
  • Duly accomplished Debit Advice Payment Form (if payment will be deducted from RSD) 

*Appraisal fee depends on the location of the property and is non-refundable if the member opts not to proceed with the loan application.

Loan Proceeds

Check payee may be the following:

1. If purchased from individual seller – Name of seller;
2. If purchased from real estate developer – Name of developer;
3. If Transfer of Mortgage – Name of bank; and
4. In some cases, the member-borrower may have given advance payment to the seller/developer/dealer, then the corresponding amount can be paid to the borrower.