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.
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
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
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?
Hi Ms. Puwede,
Sorry, I just saw this, four years later, lol. I have this bad habit of posting questions on blogs and totally forget about it. PI = Philippine Islands. I inherited a rental property in Manila, just a mile away from UST and was planning on rebuilding from scratch. But with the Coronavirus situation, not sure if I’m pursuing it. Best regards 🙂
I also have the same habit and a habit of replying late at night. 🙂 Good for you to inherit a rental property. Once the pandemic is over we can go back to travelling again without testing, restriction, and mask. Let’s hope for a healthier humanity and environment.