How much is the Down Payment to Buy your Dream House in the Philippines?


One of the greatest aspirations of Filipinos is to possess their own dream home through hard work. Buying your own home is a significant life event that often heralds a complete transformation into autonomy, freedom, and adult years, from staying with your family or having to rent a place. It is a landmark achievement that you might plan to tick off on your lifelong wishlist when you are in your late twenties or early thirties. However, the fees for doing so are ridiculously expensive! Purchasing a property is a worthwhile decision, but somehow the initial costs can be prohibitive for many ambitious young Filipino property buyers. Purchasing your first home is a significant financial investment in your time on earth. Many factors must be considered, including place, its size or surface area, if the house is pre-selling, foreclosed, pre-owned, or ready for occupancy, and downpayment to buy a house. These will all be accounted for in the price. Whichever type of house you are searching for, anticipate spending a minimum of one million pesos. In the Philippines, aside from the down payment, there are several expenses you should be aware of before purchasing your first house.

Are you a first-time homebuyer?

Are you thinking to purchase a house soon? But with the construction materials price index reaching a whooping increase of 8.3% in May 2022, up from 6.9% just a month before, you might hesitate about constructing your new house from the base up. A smarter option is to search for properties for sale and simply purchase a property from BRIA homes in the Philippines. But one question is, are you financially stable for this great achievement and commitment?

Purchasing any type of real estate requires a significant amount of patience, hard work, paperwork, research, and, most significantly, lots of funds. Being a home buyer is possibly the most crucial commitment you will ever assume, so make sure to consider all options. Moreover, purchasing one’s own home can be especially challenging at first, especially for first-time homebuyers. This is totally normal. It can occur when you are unsure of where you should look or where to begin. There are way too many options on the market, and the prerequisites can be complicated. Downpayment to buy a house and payment terms can be perplexing at times, but once understood, a property purchase can be basic when the homebuyer is geared up.

Begin preparing yourself in every way, from making plans to completing, to transform your home into a wonderful gift rather than a cruel punishment. It is critical to have reliable and competent advisors during these key moments since buying a house is no laughing matter!

Down payment to purchase a house in the Philippines

It is understandable that this might be one of the most exciting and challenging times in your life. Nonetheless, the primary obstacle among most Filipinos is the downpayment to buy a house. Developers of residential properties would often demand at least 10-30% of the property’s purchase price initially. So, if the house you want to purchase is valuable at 5 million pesos and the development company demands a 25% downpayment, you ought to have already secured at least Php 1.25 million. This amount may be open for discussion depending primarily on your real estate agent. Still, other developers will include the reservation fee in your downpayment. This deposit shall then be taken out of the overall price of the home you desire to purchase.

Below are a few basic considerations on the downpayment to buy a house you should know when the time comes for you to purchase your own home:

  • Reservation fee

A reservation fee is typically necessary to secure the unit desired, regardless of whether it is a pre-selling house from BRIA homes or a ready-for-occupancy real estate. This reservation payment secures the house for you and excludes it from the market, ensuring that no other customer gets your preferred house. In the Philippines, the price varies among developers of residential properties. Some developers charge a reservation fee that ranges from P5,000 to P25,000 or more, varying based on the price of the house you’ve personally selected. Under certain instances, such as when developers hold open houses, they will give discounts and promotions and you will be entitled to pay a relatively low reservation fee. The reservation fee is also included in the down payment. If you choose to cancel your purchase, it is usually non-refundable. It is, nevertheless, transferable if you wish to purchase another house or real estate belonging to the same development company.

  • Spot cash downpayment

Spot cash downpayment is among the options for payment available to house buyers in the Philippines from developers of real estate. The pretty standard down payment is 10 – 20% of the overall purchase price. A few potential buyers who could not cover the whole down payment instantaneously make a deal for ½ spot cash and half distributed out down payment. The homebuyer will pay half of the necessary total down payment after having paid the reservation fee. This course of action is chosen by purchasers to reduce their month-by-month down payment.

  • Housing loans

Loans such as the Pag-IBIG housing loan and other banking loans support a sizable percentage of the house’s overall cost. When purchasing a house in the Philippines, you will necessitate additional funds to pay for the down payment, equity, and closing costs. The number of residential real estate loans provided for all kinds of new residential units in the country increased by 51.1% in the third quarter of 2021, as reported by the Bangko Sentral ng Pilipinas, 84.7% of real estate loans were for the downpayment to buy a house. (Read also: ​​Different Types of Bank Loans in the Philippines)

Final note:

Please do not hurry into purchasing your first house. It is a significant financial decision, and you must be equipped. If you want to purchase a property in the Philippines, bear in mind that it is hard, it takes a lot of time, requires studies and research, and most especially budgetary preparation. With so many things to take into consideration, you may choose to first reaffirm your home investment strategy to ensure that it is in line with your long-term financial plans and objectives.

Undertake studies on available homes for purchase and compare mortgage and housing loan viable alternatives. However, despite the high costs, it can offer exciting things in your everyday life. If you believe you are not financially prepared to buy a home, put in the effort. Invest your funds to expand it, or find other ways to generate income to put aside for your down payment and maintenance.

If you are an aspiring homebuyer looking for an affordable property within promising locations around the Philippines, you may check out the different units and houses available from BRIA Homes. BRIA Homes primes itself on developing affordable house and lot packages and easy-on-the-pocket condominium units that cater to ordinary Filipino families who aspire to acquire their own homes. It had become the perfect choice for average Filipino workers who wanted to invest in a high-quality and affordable home. Visit to reserve your very own BRIA property today!

Read also: Affordable House and Lot Property Investment 101: Guide on Your Home Buying Journey

Written by MC Sanchez