Is it okay to loan money during pandemic?

Why he did not applied the repair with pagibig? But if he think he can repay the loan within the amortization period then I think it's OK.

It is never sure take loan. You can always lose job even if crisis is not active. Or some other type of crisis can come. Loan is always risk.

Think again, loan money is not a good way as long as it can be overcome.

With or without pandemic, availing a loan is not a wise move. And 5 million is such a big amount. What will be the collateral of this loan?

Wow 5million big money. As long as he can pay.

In this time of pandemic another blow of its effect which is its mutation is giving again a warning of slowing down more the ailing economic recovery. I have the experience now that at the start of the strict implementation of quarantine procedures, the banks responded to temporarily stop the payments of loan , however when payment resumed they incorporated the deliquency amount and so the monthly amortization from the usual is much higher and when you don't pay on its due they will add the penalty. And it is so hard to make follow up. No email, no notification, no calls for your updating amount but you will receive foreclosure letter. You will be wasting your time dialing their number that keeps on saying "sorry all circuits are busy right now please stay on the line" if you are willing to wait then you will see the sun going down

If one has the capacity to repay, it is certainly wise decision to invest in the property by taking bank loan. The value of money after this crisis is certainly going to come down as time passes by and your EMI is going to remain the same.

This is very tricky. But one tip that one of my professors told me is to calculate its potential effect on future incomes. For instance, know what your monthly take home pay is and take away the percentage that you should save away, say 20%. Whatever's left, take away your regular monthly expenses as well as the potential monthly loan payments for the loan. If you are not negative, then chances are you will be able to pay it. Provided your job is pretty stable and regular. Personally, I will not take any loan at this time. However, if there is a very pressing need and the rates are very good due to the pandemic, then this may be an option.

i guess i'm way behind the times, but 5 million sounds too big for just a renovation. what changes will be made? who's house is it - the stepmom's or the son's?

If he has no problems repaying the loan why not?

I think it is very risky to loan money during this pandemic. You'll never know if you will still be able to pay or have a job in the future. Well, it is his choice.

In this time of pandemic don't really think so, is not about taking from bank is about paying bck to the bank, 5m is much.

Well. Has long yas he has ways and resources to pay back its fine

Loan is always risk. I learned from it,so I am not agree taking loans if possible. It's better to live for what we can bear.

I would prefer not to add any debt during this pandemic. It's too risky and we are not really sure whether we won't lose the job.

If he can pay it back, yes but like you mention risky during pandemic. Nothing is certain (like a job security)

Personally, I think it is not a smart financial move.