In this guide
- Assess your budget and savings
- Get pre-approved for a home loan
- Choose the right location and property type
- Inspect the property and verify the title
- Make an offer and sign the contract
- Closing and transfer of title
1. Assess your budget and savings
Before you start browsing listings, calculate how much you can comfortably afford. A good rule of thumb is that your monthly mortgage payment should not exceed 30–35% of your gross monthly income. Don't forget to factor in the down payment (typically 20–30%), closing costs (around 5–6% of the purchase price), and an emergency fund of 3–6 months of expenses.
2. Get pre-approved for a home loan
Pre-approval gives you a clear ceiling on what banks or Pag-IBIG are willing to lend you. It also signals to sellers that you're a serious buyer. Required documents typically include valid IDs, proof of income (payslips or ITR), employment certificate, and bank statements.
3. Choose the right location and property type
Consider commute time, school catchment, flood and earthquake risk, future appreciation potential, and proximity to public transport. Use the Disaster Risk Checker and Districts pages on this site to compare neighborhoods.
4. Inspect the property and verify the title
Always do a personal inspection. Check for water damage, electrical issues, structural cracks, and unauthorized modifications. Verify the title at the Registry of Deeds — this is crucial to avoid double-sale fraud or liens.
5. Make an offer and sign the contract
Once you're satisfied, submit a written offer with an Earnest Money Deposit (typically 5–10% of the price). Once accepted, you'll sign a Contract to Sell, followed by a Deed of Absolute Sale upon full payment or loan release.
6. Closing and transfer of title
Pay the Capital Gains Tax (6%), Documentary Stamp Tax (1.5%), Transfer Tax (0.5–0.75%), and registration fees. The seller usually pays CGT while the buyer pays DST and Transfer Tax — but this is negotiable. Title transfer typically takes 2–4 weeks.
Quick Tips
- ★ Never skip the title verification — it's your strongest legal protection.
- ★ Always negotiate the price; sellers usually leave 5–10% of room.
- ★ Check the disaster risk profile of the neighborhood before committing.
Ready to take the next step?
Browse listings or speak with a verified agent for personalized guidance.