Contract-to-Sell (CTS) Financing


CTS (Contract-to-Sell) Financing is a facility intended to refinance the Developer’s CTS receivables from its existing project/s and institute wholesale acquisition of accounts for conversion to retail accounts. Also, for the purpose of accelerating project development and sale.


Product Features
Loan Amount
Should not exceed the Single Borrower’s Limit (SBL) of OFBank (formerly Postbank)
Purchase Amount – Up to eighty percent (80%) of the contract price as stipulated in the CTS or the outstanding balance whichever is lower
CTS outstanding balance should not be lower than 300,000 except for parking lot of existing buyers of condo units with CTS already purchased by OFBank (formerly Postbank)
Loan Term
Up to a maximum of ten (10) years or the remaining term of the CTS whichever comes first
The facility shall be available for six (6) months from date of approval. 
Mode of release
Thru direct credit to the borrower’s account maintained at OFBank (formerly Postbank) or thru issuance of Manager’s Check in favor of the borrower
Availment may be made in batches with a minimum of 2,000,000 per batch
Interest RateBased on the prevailing posted lending rate of the Bank at the time of loan availment or as may be contracted or agreed upon by the Bank and the borrower, provided that such rate does not drastically deviate from the prevailing posted rate and is well above the break-even threshold of the Bank
Interest Repricing Monthly, Quarterly, Semi-annually, Annually and Fixed for the term
Mode of Repayment 
a.) Issuance of Post-Dated Checks (PDCs) covering all installments/ amortizations every repricing period; or,
b.) Direct debit from the borrower’s deposit account with OFBank (formerly Postbank)
Repayment shall be sourced from collections on assigned installment receivables coming from the CTS. 
  • Monthly amortization inclusive of principal and interest.
  • Post-Dated Checks (PDCs), if any, submitted by the buyers covering the monthly amortizations shall be surrendered to OFBank (formerly Postbank) for safekeeping.
  • PDCs submitted by the Developer that is payable to a different name aside from the Developer must be properly endorsed to OFBank (formerly Postbank)
a.) Deed of Assignment of CTS with full recourse to/with buy-back guarantee of the Developer and delivery of original CTS to OFBank (formerly Postbank).
b.) Safekeeping ODC of title, certified true copy of tax declaration, certified true copy of tax receipts and other related documents such as Fire Insurance and MRI (if available and applicable)
c.) With Lock Box Arrangement – all payments of the buyers under the CTS (cash or PDCs) shall be deposited in a non-drawing account with OFBank (formerly Postbank) exclusively for servicing of the CTS financing loan. Any withdrawals by the Developer shall require prior clearance and consent of OFBank (formerly Postbank)
a.) Fire insurance coverage to be secured upon 100% completion of unit and shall be based on the insurable value declared by the developer.
  • Deferment of submission of FIP and OR subject to Developer’s undertaking to submit the same within 90 days from date of coverage. Accounts shall be covered by FIP duly endorsed to OFBank (formerly Postbank).


b.) Credit Life Insurance/ Mortgaged Redemption Insurance (if applicable).


Fees and Charges
Application Fee₱1,000.00
Appraisal Fee
Within Metro Manila / Branch Area – ₱3,600.00 – 
Outside Metro Manila / Branch Area – ₱4,500.00 or actual whichever is higher
Note: A fee of ₱500.00 will be charged for every additional property within the same location



Bank Fees: 
Processing  / Service Fee1,000.00 or 1/10 of 1% of the approved amount whichever is higher but not more than ₱5,000.00
Handling Fee½ of 1% of the approved loan amount / Not applicable to credit line renewals
Third Party Fees: 
Documentary Stamp Tax₱1.50 for every ₱200.00 of approved loan amount
MRI: Based on the loan value
Fire: Based on appraised value of improvements
All Risks Insurance: Based on appraised value of improvements
     Notarial FeeDependent on the nature of the document and based on the prescribed IBP rates
Collateral Registration FeesDependent on the approved loan amount and standard Registration of Deeds (RD) fees


Commitment Fee½ of 1% of the undrawn balance, to be collected if no drawdown was made within the required period. Not applicable to Revolving Credit Line (RCL)
Pre-Termination Fee3% of outstanding balance terminated within the term of the loan
Cancellation Fee₱250.00 per title released
Penalty2% per month on amortization in arrears
Certification Fee
200 to cover cost of administrative expenses
Bank Guarantee – Fee½ of 1% of the total amount in the guarantee letter
Bank Statement – Fee
30 per page upon request of the client except the monthly statement issued by the bank


Minimum Qualifications / Eligibility
A developer that is engaged in the business of development and sale of real properties shall be accredited by OFBank (formerly Postbank) as a requirement for granting of a CTS financing facility. Accreditation of Developer for Purchase of CTS Receivables shall be approved by the appropriate credit authority as authorized by the Board of Directors.
Documentary Requirements
  • Application Letter
  • Corporate documents
  • Financial documents
  • Other as maybe required


Contact Information

For more information, please feel free to call or visit your nearest or preferred OF Bank Branch.