How to Buy a House in the Philippines: 5 Myths That Are Holding You Back

How to Buy a House in the Philippines: 5 Myths That Are Holding You Back

A Person Giving a Bundle of Keys to another Person

For many Filipinos, owning a home is a powerful dream, whether it’s building a space for family, securing a long-term investment, or finding a peaceful retreat for retirement. Yet this dream is often clouded by anxiety and uncertainty. 

This article aims to confront those fears by breaking down common myths and replacing them with clear, factual insights. Our goal is simple: to equip you with the knowledge you need to navigate the property market with confidence and make informed decisions on your path to homeownership, whatever your goals may be.

How to Buy a House in the Philippines: 5 Myths Debunked

Buying a home can feel overwhelming, especially with persistent myths based on outdated or secondhand information. These misconceptions often create fear and hesitation, holding you back from your homeownership goals. 

Let’s clear the air by debunking common myths and giving you facts to move forward with confidence.

Myth 1: You need a 20% down payment to get started

The truth: Lower down payment options and flexible terms are now widely available from government programs, developers, and other financing institutions.

If you’ve been putting off buying a home because you think you need a 20% down payment, you’re not alone. While that used to be standard, today’s real estate market offers more flexible and accessible terms.

You can find various options across the market. For instance, the Pag-IBIG Fund, a government-backed program, provides housing loans with minimal down payment requirements and longer repayment terms, making it easier for more Filipinos to get started. Private institutions, like Metrobank, also offer competitive loan terms that can cover a large portion of the property’s value to help reduce upfront costs.

Some developers even run no-down-payment promos, letting you move forward with extended payment terms while preparing to settle in.

Myth 2: All debt is bad debt

The truth: A mortgage is “good debt” because it builds equity in an appreciating asset.

Debt often carries a negative connotation and is linked to stress and financial burden. But not all debt is bad, especially when it comes to owning a home.

A mortgage is widely considered good debt because it helps you invest in a property that typically increases in value over time. Real estate in the Philippines, especially in growth areas like Cavite and Laguna, tends to appreciate over time. With each payment, you build equity, bringing you closer to financial stability and long-term goals.

What’s more, today’s financial options are more manageable than you might think. Many banks and developers also offer affordable loan terms and in-house financing. Fixed monthly payments make budgeting easier, giving you the confidence to plan.

Myth 3: Renting is cheaper than buying

Truth: While renting may seem more affordable upfront, buying a home is the smarter long-term move for building wealth.

Renting offers flexibility and lower initial costs, but over time, it doesn’t build equity or contribute to your financial future. In Metro Manila, the average gross rental yield is only around 5.19%—a modest return that highlights the limited financial upside of renting. 

In contrast, homeownership allows you to build wealth through property appreciation and equity accumulation. Instead of simply paying for a place to stay, each mortgage payment goes toward owning an asset that increases in value over time.

If you’re not ready to make a full leap, rent-to-own options offer a more accessible path to ownership, letting you live in the property while gradually working toward full ownership. It’s a practical way to turn monthly housing costs into long-term financial gain.

Myth 4: Buying a house is only for families

Truth: You don’t need a partner or kids to start your homeownership journey; more young professionals are making real estate part of their early plans.

Today’s Filipinos are shifting their priorities, and stability is high on the list. In fact, homeownership among younger generations has increased by 20% in the past six years, showing a clear trend: more young adults are investing in their future now.

Buying a home early lays the foundation for long-term financial growth. With property values steadily appreciating, you’re securing a roof over your head and building an asset that can generate passive income later on.

If you’re in your career-building years, now’s a great time to take that leap. A home is a move toward stability, independence, and opportunity, no matter your life stage.

Myth 5: The process is complex and stressful

Truth: Buying a home in the Philippines is more straightforward than you might think.

The process typically begins by choosing a preferred location and developer. From there, you’ll prepare basic requirements like valid IDs, proof of income, and a reservation fee. Many developers assist with these initial steps, helping simplify the process from day one.

Next comes financing. Most banks offer online loan calculators and pre-approval tools to help you determine your budget early on, giving you a clearer picture of your payment terms and avoiding unexpected costs.

Once your loan is approved, the bank and developer coordinate the fund disbursement, title transfer, and registration, including working with the Registry of Deeds and managing taxes and paperwork.

A trusted developer will assign a sales officer to guide you through each stage. For added peace of mind, you can also consult licensed real estate brokers or attend property expos to get expert advice and explore your options.

While buying a home may seem overwhelming at first, the proper support can make it an achievable, step-by-step journey.

Turn Homeownership Fears into Confidence

Aerial Photo of Cars on Road During Night

The dream of owning property in the Philippines is well within reach; outdated fears and misinformation should not stand in the way. With accurate information and a clear understanding of today’s market conditions and financing options, achieving home ownership is a realistic goal for many.

Navigating this process is made easier when you partner with a trusted developer who understands the challenges you face and offers clear pathways to ownership. Federal Land NRE Global Inc. is a reputable real estate developer in the Philippines, dedicated to helping buyers like you achieve their homeownership dreams.

Whether you’re starting to explore condo living or thinking long-term about owning a lot, we offer a range of properties for sale in the Philippines, designed to meet the needs of modern buyers. Our dedicated team is here to guide you through every step of the buying process. 

If homeownership is on your mind, now is the right time to explore your options. Contact us today to learn more about how we can help turn your plans into a place to call your own.

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Frequently Asked Questions

Find answers to your queries from the categories below.

General Question
Can a foreigner purchase a condominium unit in the Philippines?

Yes, foreigners are allowed to own condominium units in the Philippines, as stated in Section 5 of Republic Act No. 4726, otherwise known as the Condominium Act.

Yes, on the condition that the parent or legal guardian signs the contract on behalf of the minor. Please contact us for more details.

Yes, you can upgrade your purchase. The Developer will first check if the preferred unit is still available. If it is still available, the Buyer will be required to submit a written request. Once the request is approved, a new contract will be drawn up for the upgraded unit.

Yes. The process to downgrade is similar to that of upgrading a unit purchase. However, all expenses incurred by the Developer (commission, incentives, penalties, downgrading fee, etc.) shall be deducted from the Buyer’s original contract price, in favor of the Developer.

What are the available payment terms?

There are several payment terms available – Cash Term, Bank Financing Term, Deferred Cash/Installment Term, and No Down Payment Term. Please contact us for more details as the availability of these payment terms also vary per project.

Yes, you may change or restructure your selected term, but this will also be subject to Management’s approval and we will be charging a minimal processing fee.

Yes, we accept payment in US dollars. The exchange rate shall be based on the date the payment is credited to the Developer’s account.

On or before the due date of the first (1st) monthly amortization, the Buyer is required to submit Postdated Checks for the remaining monthly amortizations (that is, until the end of the payment term).

The developer adheres to provisions as stipulated in Republic Act No. 6552 or the “Realty Installment Buyer Protection Act,” also known as the Maceda Law. This law states that when the Buyer has paid at least two (2) years of installments, the seller/developer shall refund 50% of the total payments made if there is a cancellation on the purchase. For payments less than two years, the provisions as stipulated in the Contract to Sell will prevail.

What do I need to do to officially reserve a Condominium Unit?

Requirements to officially reserve a unit or lot are as follows:

1. Full payment of the Reservation Fee

2. Photocopy of one (1) valid government-issued IDs of Principal Buyer/s and Spouse/s (if applicable). Valid government-issued IDs with photos and signatures:

  • Passport
  • Driver’s License
  • GSIS ID
  • SSS ID
  • Professional Regulatory Commission ID
  • Tax Identification Number ID card
  • Senior Citizen ID
  • Postal ID
  • Photocopy of TIN ID card or BIR validated 1904 form

3. Fully accomplished and signed Reservation Application

4. Fully accomplished Buyer’s Information Sheet. For purchase under a Corporation, the following additional documents are required:

  • Articles of Incorporation and By-Laws (photocopy)
  • Secretary’s Certificate indicating the name of authorized signatory (notarized)
  • BIR-validated 1903 or copy of Certificate of Registration
  • For the authorized signatory to submit items 2 and 3 above

The reservation is valid for thirty (30) calendar days from the settlement of reservation fee. Kindly submit all the required documents to finalize the unit booking.

No, the reservation fee is non-refundable and non-transferrable. As stated in the Reservation Application, the reservation fee will be forfeited in favor of the Developer if no succeeding payments are received.

Will I be allowed to inspect the Unit before the actual turnover?

Yes, the Hand Over Team will coordinate with the Buyer on the schedule of unit inspection.

Yes, the Buyer may assign a representative to accept the unit on his behalf thru a notarized Special Power of Attorney (SPA). The SPA is also required to bring a valid ID plus photocopy.

Yes, you may have your unit leased out.

Monthly Association Dues vary per project, depending on the operating expenses of the building. Association Dues are used to defray the cost of maintaining and operating the building’s common areas and facilities. These costs include administration/management fees, janitorial, security, taxes and licenses, insurances, real estate tax, maintenance of equipment water distribution, garbage collection, maintenance of sewage treatment plant, and other miscellaneous expenses.

The unit turnover will be scheduled when all the following conditions are met:

  • Full payment of the contract price (including penalties and interests, if applicable)
  • Complete submission of all the required sales documents (listed above)
  • Payment of related Advance Registration Charges (ARC).

No, this is not allowed. Buyers are encouraged to either avail of bank financing (with accredited banks) or in-house financing to pay the unit in its entirety.