My Expenses in Buying a House in the Philippines

As I chronicled my journey of buying a house in the Philippines while I’m abroad, I wanted to add more details so it would be easier to track the progress/process.

The timeline shows what I’ve done since the start of 2017 without much details. Then I realized something is missing.

What’s a personal finance blog without numbers and currency.

It’s right here that you can discover how much I’ve spent in my quest for a dwelling place called home. Its future name is Fantastic which originated in my school projects for Home Economics.

OFW Buying a House

Expenses in Buying a House

I included ALL the expenses related to buying a house and not just in one housing loan application.

At first I decided to apply for a Pag-IBIG housing loan but we went for a Philippine bank home loan instead.

The costs are expressed in both Canadian dollars and Philippine peso based on the exchange rate for that day. The value fluctuates as one currency becomes stronger or weaker against the other.

Pag-IBIG Requirements

Pag-IBIG monthly contribution (as of September 2017) – C$478.51 / Php17,500.00 (1 CAD = 36.5717 PHP, average annual rate for 3 years)

  • 2015 – 35.6123
  • 2016 – 35.8500
  • 2017 – 38.2527

My goal is to make a 24-month contribution to qualify for a housing loan in case I have to. If not, the contributions serve as retirement fund.

Special power of attorney – C$33.75 / Php1,286.89 (1 CAD = 38.1301 PHP)

DHL forwarding fee – C$153.99 / Php5,650.97 (1 CAD = 36.6970 PHP)

1st Property

Certified True Copy of Title from the Registry of Deeds – C$4.70 / Php196.97 (1 CAD = 41.9174 PHP), for first 2 pages, 76.38 for subsequent page

Security Bank appraisal fee – C$90.27 / Php3,500.00 (1 CAD = 38.7743 PHP)

2nd Property

Certified True Copy of Title from the Registry of Deeds – C$4.70 / Php196.97 (1 CAD = 41.9174 PHP), for first 2 pages, 76.38 for subsequent page

TOTAL EXPENSES:

Canadian dollar – C$765.92
Philippine peso – Php28,331.80

What’s Not Included in the List

Other small expenses such as fee for scanning, photocopy, and photographs are not included in the list for simplicity.

Transportation is also not added. My siblings and agents spent a great deal of time checking the property. Sometimes they have to go more than twice to thoroughly check the house and talk to the owner to get the best deal.

Some owners are willing to accept a payment from a Philippine bank housing loan. Others are hesitant.

The most important thing that was spent which is priceless is TIME. So now we focus on the right property and housing loan application.

Final Thoughts

It’s still a long way ahead before reaching the final total expenses. Seeing the figures makes me excited and cringe at the same time because I’m getting closer to my goal.

As our family keeps on working to find Fantastic (the name of the future house; it’s my habit to name things), we also keep on learning and sharing the experience here.

Homeownership is a long commitment and a privilege. Knowing the expenses in buying a house makes me more committed and inspired to increase my income.

Exchange Rate Resource: OFX – Yearly Average Rate and Oanda – Currency Converter

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About Pwede Padala Gal

Pwede Padala Gal loves to share tips on how to save in Canada and the Philippines. Someday she’ll finally teach her Aspin at least one dog trick and keep a cactus alive. Chat with her on Facebook and reddit.

Comments

  1. Hello Ms. Pwede,
    I’m seeing lots of valuable information here. Wish you were blogging for Fil-Ams as well. Do you know of any gotchas about buying or building a house in PI when you’re no longer a citizen? Regards

    • Pwede Padala Gal says:

      Does PI means Philippines or PEI in Canada as in Prince Edward Island. I’ll go for my first guess. If you’re a Filipino citizen, you can apply for a housing loan (purchase or repair) through banks, Pag-IBIG, etc. and buy whatever property regardless of size. If not, there’s a limit of what the size of the lot a former Filipino citizen can own. It’s a great question that is worth exploring further Menard which haven’t crossed my mind so thanks for asking.

      There are lots of infrastructure in the Philippines. I’m excited for a subway station and new airport. Buying a house in the province close to Manila is a great option for those who dislikes the hustle and bustle of the city life. What area are you eyeing at?

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