FIRST HOME & OFW PLANNING

Buy a home you can sustain.

Test equity, turnover cash, income and the eventual mortgage.

Read Part 2: income, loan terms and the calculator →

Original editorial illustration of a peso budget, house key and the transition from equity payments to mortgage commitments

CAN YOU FINISH PAYING?

Home-buying affordability calculator

Example inputs are educational, not bank offers. Enter current quotations and your actual budget. Every amount is in Philippine pesos. For OFWs, use income after overseas living costs and remittance charges, or enter those expenses below—never deduct them twice.

1 · Price, equity and financing

Total contract price (₱)Total equity paid before turnover (%)Equity installment monthsAssumed bank appraisal (₱)Assumed financing / appraisal (%)Other unpaid turnover / loan / move-in costs (₱)

2 · Loan and rate stress

Mortgage term (years)Initial nominal annual interest (%) · exampleInitial fixing period (whole years)Rate increase at first repricing (percentage points)Monthly insurance, dues, tax and maintenance provision (₱)

3 · Household income and living budget

Dependable monthly take-home / peso remittance (₱)Income / remittance reduction in stress test (%)Non-housing essentials, including family abroad (₱/month)Other required debt payments (₱/month)Other planned savings / retirement (₱/month)Rent during equity period (₱/month)Housing / take-home planning ceiling (%)Housing + debt / take-home ceiling (%)

4 · Cash and emergency reserve

Existing liquid cash available for turnover / reserve (₱)Separate monthly saving toward turnover / reserve (₱)Emergency reserve months · OFWs may need more

5 · Optional extra repayments

Optional extra principal each mortgage month (₱)Optional future principal lump sum (₱)Lump sum at end of mortgage year

Equity is modeled as equal interest-free installments. Reservation already credited to equity must be accounted for when estimating remaining installments; this tool does not separately deduct reservation. Cash inputs should exclude equity already paid and money unavailable for this purchase. Enter annual insurance and taxes divided by 12; avoid amounts already included elsewhere.

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Calculation method and limits

Loan = the smaller of the unpaid price and financing percentage × the lower of appraisal and TCP. This conservative appraisal assumption is not a lender policy. Approval, income qualification, age limits and bank-specific financeable costs are not verified. Equity gap = unpaid price − modeled loan. Turnover cash adds entered costs. Projected cash = existing liquid savings + separate monthly savings × equity months. No investment return or windfall is credited.

Monthly mortgage uses a reducing-balance formula: principal × monthly rate ÷ [1 − (1 + monthly rate)^−months], or principal / months at zero interest. Repricing computes the balance after the initial fixing period, then amortizes it over the remaining original term at initial rate + selected increase. The stressed housing cost uses the higher of initial and repriced payments plus entered ownership costs.

The combined stress applies the income reduction and rate increase together. Reserve = selected months × (essential expenses + other debts + stressed housing cost). A passing screen requires current and stressed housing/debt ratios within selected limits, non-negative residual budgets, affordable equity-phase commitments and enough projected cash for turnover plus reserve. It does not assess suitability or guarantee approval. Rent is assumed replaced by the owned home after turnover; add any continuing rent to ownership costs. No equity/rent/mortgage overlap beyond the modeled periods is assumed.

Optional repayment simulation is separate: rate stays constant, approved extras reduce principal each month and a lump sum is applied at selected year-end. Regular amortization is maintained to shorten the term; charges and clawbacks are excluded. No prepayment is relied on for approval or sustainability. Enter higher reserve needs for OFW contract gaps. This calculator does not store or submit your financial inputs.