Sample mortgage contract

Important: Mortgage agreements should be annotated on the Title to the property at the Register of Deeds in order to be effective against persons who are not party to the contract.

Discussed in: Understanding mortgage contracts in the Philippines





 This Real Estate Mortgage Agreement executed by and between:

[NAME], Filipino, of legal age, married and with address at _____________, hereafter called the Debtor/Mortgagor;

 – and –

[NAME], Filipino, of legal age, married, and a resident of _____________, hereafter called the Creditor/Mortgagee;

W I T N E S S E T H : That – 

  1. The Property. – The Property subject of this contract is a parcel of land, more particularly described as follows:

Transfer Certificate Of Title No. __________

Registry Of Deeds For _________ City


together with all the improvements thereon, herein collectively referred to as the Property.

  1. The Loan.Debtor/Mortgagor has obtained a loan from the Mortgagee in the sum of _____________ Pesos (P__________) subject to the terms and conditions hereunder prescribed, to wit:

2.1.      The loan shall be payable on or before 15 December 2019.

2.2.      It shall bear interest at the rate of twelve percent (12%) per annum payable every 15th day of the month corresponding to the month for which interest is due.

2.3.      The amounts due by way of interest payments shall be covered by [number] (__) postdated checks of P__________ each and the principal loan of P_____________ shall also be covered by a postdated check dated 15 December 2019.

2.4.      Failure and/or refusal or the Debtor/Mortgagor to pay two (2) consecutive monthly interests (or when the checks are dishonored) shall automatically make the principal loan of P________________ due and demandable, together with the unpaid interest, if any.

  1. The Mortgage. – For and in consideration of the loan stated in paragraph 2 hereof and by way of a security therefor, the Debtor/Mortgagor hereby constitutes a real estate mortgage on the Property in favor of Creditor/Mortgagee, under the following terms and conditions:

3.1.      The mortgage shall secure the payment of the loan, together with the unpaid interest, if any.

3.2.      In case the maturity of the loan is extended, upon mutual agreement in writing of the Parties, this mortgage shall be a continuing security for the obligation/s of the Debtor/Mortgagor to the Creditor/Mortgagee without the necessity of executing a new contract of real estate mortgage.

3.3.      If the Debtor/Mortgagor shall well pay and/or comply with his all and every obligation under this Deed, then this mortgage shall cease to have any force and effect. However, if the Debtor/Mortgagor shall fail and/or refuse, for any reason whatsoever, to fully pay and/or comply with all or any of his said obligations, then the Creditor/Mortgagee may judicially or extrajudicially, at his option, foreclose the mortgage on the property in accordance with law.

3.4.      In case collection of any amount due under this mortgage agreement is referred to a lawyer by the Creditor/Mortgagor, the Debtor/Mortgagor is under obligation to pay the former twenty percent (20%) of the amount due.

  1. Expenses. – Expenses for notarial fees shall be for the account of the Debtor/Mortgagor. All other expenses for the registration with the appropriate office / the Register of Deeds shall be for the account of the Creditor/Mortgagee.
  1. The parties agree that all court actions concerning this Agreement shall be brought before the proper courts of Quezon city or the city of Makati to the exclusion of any other venue.
  1. If any one or more of the provisions of this Agreement is declared invalid or unenforceable, in any respect under any applicable law, the validity, legality or enforceability of the remaining provisions contained herein shall not in any way be affected or impaired.

IN WITNESS whereof, the Parties affixed their signatures this ______th day of ________________ 2017 in ___________ City.


                               (Mortgagor)                                                       (Mortgagee)

Signed in the presence of:

_____________________________    ___________________________



) S.S.

x – – – – – – – – – – – – – – – – – – – – – – x

BEFORE ME personally appeared:

            PERSONS                                    ID

[NAME]           Driver’s License No. ___________

[NAME]           Driver’s License No. ___________

presenting their competent evidence of identity, known to me and to me known to be the same persons who executed the foregoing Real Estate Mortgage Agreement and they  acknowledged to me that the same is their knowing, free and voluntary act and deed.

This document relates to the mortgage of a parcel of land registered under TCT No. _______________ of the Registry of Deeds for ___________ City and consists of ____ (___) pages, including this page, each of which had been signed by the Parties and their instrumental witnesses.

WITNESS my signature and notarial seal this ___th day of _________ 2017.

Doc. No. ____;

Page No. ____;

Book No. ____;

Series of 2017.


Atty. Francesco C. Britanico

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