Keys before the keys: From smart moves to smart homes
Before we get the keys to our dream home, we first need the keys to our financial foundation.
Acquiring real property is one thing, but maintaining it is another. You need to think about repairs and maintenance, renovation and remodeling, real property tax, insurance, and even estate or donor’s taxes. There are phantom costs that most first time home buyers are not familiar with.
As such, being prepared means that when opportunity knocks, we must be ready to open the door—and you’ll need three keys to do so.
First, be financially ready to buy a home. Second, make smart choices when financing it. And lastly, build a long-term wealth mindset using real estate.
Laying the foundation
We Filipinos aren’t just buying a home—we’re building a future.
Buying a home is one of the biggest decisions we’ll ever make, emotionally and financially. But the truth is, the journey starts long before the first down payment. It starts with clarity. Do you really know your numbers—your income, expenses, debts, and savings?
Here’s a golden rule: “Budget before browsing.” Before you open Lamudi, Carousell, or Facebook Marketplace, open your spreadsheet first. Know your financial capacity before you fall in love with a property.
Next is your emergency fund. Buying a home without an emergency fund is like building a house without a foundation. Aim for at least three to six months’ worth of expenses before you commit to a loan.
Then, check your credit score—it’s your down payment on trust. It can spell the difference between getting approved and getting declined, or by getting a 7 percent loan and a 9 percent loan.
And lastly, watch out for lifestyle creep.
As income grows, we tend to reward ourselves—better gadgets, grander vacations, upsized coffee. But remember: “If your lifestyle grows faster than your income, your dream home might just stay a dream.”
Smart home financing hacks
Once you’re financially ready, it’s time to play smart with financing.
Let me share a simple framework—the 20-30-50 rule for home goals. Ideally, you should set aside at least 20 percent of the property’s price as your down payment. This not only lowers your loan amount, but it can also help you secure better interest rates and avoid additional insurance costs.
As a general rule, your monthly loan payments should not exceed 30 percent of your gross monthly income. This threshold helps ensure that your housing costs remain manageable and that you still have room in your budget for other financial obligations.
The remaining 50 percent of your income should cover your day-to-day expenses like food, utilities, transportation, insurance, education, and savings. Maintaining this balance allows you to live comfortably while keeping your finances healthy and resilient against unexpected events.
Next, compare your options.
Check total cost over time, hidden charges, insurance, and flexibility. A half-percent difference may look small today but can translate to big savings later. Compare promo offers which may include free mortgage redemption insurance (MRI) for the first year or perhaps a package deal with a property insurance with Acts of Nature coverage.
It goes without saying that you need to choose a property from a reputable developer. You also need to be this choosy when it comes to the bank you are borrowing from.
Third, get pre-approved. Pre-approval isn’t just paperwork. More than anything—it’s a confidence boost.
And one more thing, don’t rush the decision making process. Buying a property should never be an impulse—it’s a lifetime commitment.
Building long-term wealth
High demand and low supply mean high prices. In the case of real estate, everyone wants one. But there are fewer and fewer properties available.
And that explains why the brochure from six months ago is already obsolete. The problem with real estate as an investment vehicle is its high barrier to entry. You’ll need a considerable amount of money, but those who know will tell you—it will all be worth it.
Now that you’re ready and equipped, let’s zoom out to the big picture—wealth building.
Every payment you make builds equity—your silent partner in wealth. Over time, that equity can become your leverage for business, renovation, or even your next investment.
Most importantly, think generationally. Your dream home today, can easily be your ancestral home for generations to come. Buy not just for where you are today, but for who you’re becoming tomorrow.
Keys to your dream home
So, before getting the keys to your dream home, make sure you follow these key tips: Be financially ready to buy a home; make smart choices when financing it; and build a long-term wealth mindset using real estate.
So start where you are, use what you have, and build not just for today, but for the future you want to come home to.
May you all find not just your dream house, but your financial home.
