Mortgage Letter Template for Philippines

The Mortgage Letter is a critical document in Philippine real estate financing that serves as the official communication of mortgage approval and terms between a financial institution and a borrower. It is typically issued after the initial loan application has been approved but before the final mortgage agreement is executed. The letter must comply with various Philippine regulations, including the General Banking Law of 2000, BSP directives, and consumer protection laws. It contains essential information such as loan amount, interest rates, payment terms, property details, and conditions that must be met before loan disbursement. The Mortgage Letter is particularly important as it allows borrowers to understand their obligations and serves as a preliminary document for further legal and financial planning. It's commonly used in both residential and commercial property transactions throughout the Philippines.

1. Letter Header: Complete name and address of the lending institution, date, and reference number

2. Recipient Details: Full name and address of the borrower(s)

3. Subject Line: Clear indication that this is a mortgage offer/approval letter

4. Salutation: Formal greeting to the borrower(s)

5. Approval Statement: Clear statement of mortgage approval and basic terms

6. Property Details: Complete description of the mortgaged property including location and title details

7. Loan Terms: Key financial terms including principal amount, interest rate, term length, and payment schedule

8. Conditions Precedent: List of requirements that must be fulfilled before loan disbursement

9. Security Details: Description of the mortgage security arrangement and registration requirements

10. Closing Statement: Instructions for next steps and acceptance of terms

11. Signature Block: Authorized signatory details from the lending institution