Contract To Sell (CTS) Financing Facility

Contract To Sell (CTS) Financing Facility

Fresh funds for new projects need not be a problem for real estate developers. The CTS Financing Facility, a term loan credit facility, aims to provide liquidity to accredited developers through the purchase of their Installment Sales Contract (ISC) receivables or CTS from end buyers. This will enable developers to continue with their other projects.

Features

  • Available to developers who meet the following qualifying criteria:
    • Must be registered with the Securities and Exchange Commission (SEC)
    • Must have been in operation for at least five (5) years
    • Must have at least five (5) past projects with at least 100 units per project
    • Must have at least two (2) ongoing projects
    • Must have two (2) future projects with either land acquisition and/or retained earnings appropriated for future land acquisition
    • Must have passed government agencies’ regulations
    • Must have a good sales & marketing organizational structure
    • Must have acceptable financial capability
    • Projects must have existing communities
  • The loan to be obtained by the developer will be secured by the Contract to Sell (CTS) limited to the following :
    • Purchase of lot
    • Purchase of house and lot
    • Purchase of condominium unit
  • Maximum Amount – loan entitlement will be based on the following :
    • Line allowed per qualified developer shall be up to a maximum of P 100.00 Million.
    • The facility shall be made available for availment or drawdown within the validity period of maximum term of one (1) year from date of conformity to the Letter Approval Advice.
    • Amount of financing or purchase price for each CTS shall be for a minimum of P300,000.00.
    • The purchase price or loan availment amount shall not exceed 80% of the appraised value of subject property and 100% of the outstanding balance with the Developer.
  • Term of the loan shall be for a minimum of one (1) year up to a maximum of ten (10) years from date of loan release; first amortization to commence 30 days from date of loan release.
  • Interest rate competitive with prevailing market rate at the time of availment, to be repriced annually or on specified review periods.

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Online Application » Individual / Sole Proprietorship | Partnership / Corporation