🏡 How to Purchase Your First Philippine Home

Buying your first home is a major milestone—and in the Philippines, it can be both exciting and overwhelming. Whether you’re planning to purchase a house and lot or a condo unit, here’s a step-by-step guide to help you through the process.

1. Decide on a Budget
   Before browsing listings, know how much you can afford. Consider:

Monthly income and expenses

Savings for down payment (usually 10–20%)

Loan eligibility from banks or PAG-IBIG

Hidden costs (taxes, insurance, maintenance, etc.)

📝 Tip: Use online mortgage calculators to estimate monthly amortizations.

2. Choose Your Favorite Site
   When choosing a location for your first home, it’s essential to consider accessibility, safety, and convenience. Look for properties that are close to your daily needs, such as your workplace, schools, hospitals, and markets, to save time and transportation costs. Check the availability of public transport in the area, especially if you don’t own a vehicle. Most importantly, evaluate the safety of the location by researching if it’s a flood-prone area using local disaster risk maps. Taking these factors into account will help ensure a more comfortable and secure living environment for you and your family.
   🏙️ Popular areas: Metro Manila, Cavite, Laguna, Bulacan, Cebu, Davao
3. Select the Appropriate Property Type
   What suits your lifestyle and long-term plans?

House and Lot – More space, ideal for families

Condominium – Great for urban living, less maintenance

Townhouse – Affordable hybrid option

4. Research Developers and Listings
   Before committing to a property, it’s crucial to ensure that the developer is reputable and that the property has a valid title. Start by visiting the developer’s official website or social media pages to learn about their track record, completed projects, and customer feedback. Take time to check online reviews and housing forums where other buyers share their experiences. It’s also helpful to consult licensed real estate brokers or attend property expos, where you can compare different developments and ask questions directly. Doing thorough research protects you from potential scams and gives you peace of mind in your investment.📌 Verify with HLURB/ DHSUD if the developer is accredited.
5. secure funding
   Options include:

Bank Housing Loan – Lower rates, stricter approval

PAG-IBIG Housing Loan – Flexible for members, ideal for low to mid-income earners

In-house Financing – Easier approval, but higher interest

🧾 Prepare documents like:

Valid ID

Proof of income (COE, payslip, ITR)

Employment/business records

Marriage certificate (if applicable)

6. Check the Property Thoroughly
   Before committing, inspect:

Actual location vs brochure promises

Quality of construction

Available amenities

Neighborhood safety

📸 Take photos and videos during site visits.

7. Understand the Contract
   Before signing any documents, it’s crucial to fully understand the contract involved in buying your first home. Carefully read the Contract to Sell (CTS), which outlines the terms and conditions of your purchase. Review the Reservation Agreement to ensure you’re clear on the reservation fee, validity period, and its implications. Pay attention to the payment schedules, including due dates, amounts, and installment terms. Check the move-in and turnover terms to know when you can occupy the property and the requirements for handover. Lastly, be aware of penalty clauses for late payments, which can lead to additional fees or even cancellation of the contract. If any part is unclear, don’t hesitate to seek advice from a legal expert.
   ✅ Seek legal advice if unsure about contract terms.
8. Prepare for Other Fees
   Aside from the actual property cost, it’s important to set aside a budget for additional expenses that come with buying a home. These include transfer taxes, which are required to legally transfer the property title to your name, and the documentary stamp tax, a government-imposed fee for the transaction. You’ll also need to cover registration fees for officially registering the property under your ownership. Don’t forget the notarial and legal fees for document processing and legal validation. If you’re buying a condominium or a home within a subdivision, there may also be homeowners association dues that contribute to the maintenance of common areas and amenities. These costs can add up, so it’s best to plan for them early in your home-buying journey.
9. Final Steps
   Once your home purchase is approved and fully paid, the next step is to complete the necessary post-purchase processes. Begin with the title transfer, which legally registers the property in your name. This is followed by securing a Tax Declaration under your name from the local assessor’s office, establishing you as the official property owner for tax purposes. Before moving in, conduct a thorough check using a move-in inspection checklist to ensure that everything in the property is in good condition and matches what was promised in your agreement. Completing these steps helps protect your rights and ensures a smooth transition into your new home.
   🏠 Congratulations—you’re officially a homeowner!

Conclusion
Buying your first home in the Philippines requires careful planning, patience, and informed decisions. Don’t rush—take the time to research and consult professionals if needed. With the right approach, your dream home is within reach!