All the Costs You Need to Know Before Buying a Condo

In my previous posts, I talked about the realities of owning a condominium unit in the Philippines, and the things that you may need to consider before buying one.

In this article, I will focus only on the fees. Yes, the many fees that you will be paying before and during your move-in, up until you start occupying the unit. It is good to have knowledge about these fees so that you could prepare and won’t get surprised or overwhelmed later on.

1. First on the list is the reservation fee.

So you’ve already decided on which property to purchase, and your agent is now regularly contacting and updating you. To seal the deal, you will be asked to pay the reservation fee.The reservation fee ranges from P15,000 to P20,000 (more or less). Just consider this as a processing fee for everyone who will be working on your papers, including your agent. For them, this is also an assurance that you are a serious buyer, and that they are not wasting their time preparing the paperworks for you.

The downpayment is not refundable after a certain period, but is often deductible from the total price depending on the policy of the developer. You would often see this in the sample computation that agents are giving out. Make sure to ask for the receipt upon paying the reservation fee.

Your contract will come during this phase. It will be notarized as soon as you sign the paperwork, and you will be given soft and original hard copies.

2. The downpayment.

A downpayment could go from as low as 5% up to 50% of the total unit price. You can talk this out with your agent as most developers are now offering terms which are very flexible, often meeting halfway with the client. The downpayment can also be paid via installment. This would be a practical option especially for a pre-selling property.

In my case, I opted for the 10% downpayment and 90% home loan. The 10% downpayment was payable for twelve (12) months, but can be paid in full at anytime within those 12 months.

3. After the downpayment, comes the hardest part – applying for a home loan.

Needless to say, this is not applicable if you are buying your unit in cash but for the majority of us, our options are:

– Home Loan or Housing Loan thru a Bank
– Pag-IBIG
– In-house Financing

I’ve discussed these separately in this post:

Buying a Condominium in the Philippines: In-House or Bank Financing?

I say, this is the biggest payment that you will be making, so it is very important to determine beforehand if you are illegible for a bank loan or a Pag-IBIG housing loan. It would help to begin making those inquiries from banks and Pag-IBIG before you even start paying the downpayment. I have shared my harrowing experience in getting a bank’s approval of my home loan in the below post, and it is something that I do not wish anyone to experience:

Applying for a Home Loan in the Philippines

4. Bank fees

Okay, your home loan application has been approved, congratulations! You will be signing tons of documents in the bank, and in order for your papers to get moving, you will be paying more fees!

Basically, you can consider this as another processing fee similar to the reservation fee above, but plus applicable tax and more. This is to be paid in full, and comes with a 3-5 days deadline. I paid around P70,000 in bank fees for my home loan back in 2016.

5. Time to move-in! You are not done paying yet. Prepare around P50,000 for the following:

– move-in fee, which is equivalent to one to three months of your monthly association dues. Note that this is not an advance payment; you will still start paying condo dues in your first month.

– other requirements such as fire extinguisher, grease trap and range hood installations.

– construction bond if you decide to have interior renovations. I haven’t done this yet so I couldn’t confirm if the construction bond is refundable in full.

6. On with the monthly bills:

Electric and water bills, plus the monthly condominium association dues. More about condo dues in this post:

How Much are you Paying for your Condo Association Dues?

Well, in addition to your monthly amortization, you will be paying for these three for as long as you own the unit. Say your monthly amortization is P15,000, add another P3,000 to P5,000 for these bills. You will be needing around P18,000 to P20,000 every month for your condo unit alone.

Why am I sharing all these?

The “for as low as P10K monthly” lines in bold letters that you see on those flyers are very enticing. I have some friends who paid for reservation fees because they were attracted to the supposedly low monthly payment. Unfortunately, they would later on learn about all these other fees and realize that they do not have the capacity to pay for them yet. Note that the reservation fee is often not refundable, so avoid giving away P15,000 or P20,000 for nothing.

It is important to research and be aware about the actual amount that you will be needing before, during and after buying a condo. I am lucky to have a very supportive family that together, we somehow became financially capable for this endeavor. It is one of the best decisions that I ever made, and I’m glad that I went for it.

How Much are you Paying for your Condo Association Dues?



Our property management just announced that there will be no increase in our condo dues this 2018.

The cost of association dues vary depending on the developer and property itself. Other factors, such as location and type of development, are also being considered.

For some condominiums, the amount is the same for all units, which ranges from P1000-P1500 per month. For others like SMDC, this is computed per square meter:

Residential Units: P79/sqm/month Parking Units: P61/sqm/month

The same is true for Robinsons. A friend who owns a unit in a Robinsons development is paying P74 per square meter a month for condo dues. I believe DMCI also follow this per square meter computation. This means that the bigger your unit, the higher your association dues will be. It sounds unfair, but NOT if you have more than three tenants in those bigger units (as opposed to three or less in the smaller units).

And for some good news, association dues will no longer be taxed under the new TRAIN law. This looks like an additional savings for condo owners?


How much are you paying for your condo association dues?

Buying a Condo Unit: What You Need to Know

Unless you are filthy rich, buying a property in the Philippines, like a house and lot or a condominium unit is quite a big decision to make. You are putting your hard-earned money in to something which you hope and expect to be all worth it. You will then make countless inquiries, talk to agents, and look for information everywhere that may be of use to you.

I am 99% sure that that brought you in this page. You may have already read them all – tips about what to consider, what you should be looking for, the location, the developer, the building or development type. I am here to talk about the actual buying experience – from the day you made the deposit, to that big moment of being handed over with the keys to your unit.

I am not an expert in real estate. In fact, the only thing I could share are my experiences as a buyer. And as of this writing, I am still going through the process of getting past the “move-in” phase. For some, it probably went pretty well. I have several friends who didn’t have any big issues to deal with.

And so, if you are a condo buyer-to-be, I hope that what I am sharing would help. Note that this is based from my personal experiences alone, and is certainly not the same for everybody. Let’s start with:

1. Pag-IBIG or Bank Financing?Again, unless you are buying the condominium unit in cold cash, you will be relying on the help of banks or Pag-IBIG to finance your home. Some developers are tied-up with Pag-IBIG, which means they will do all the paper works for you. The big ones, like SMDC and Robinsons, are not. I tried to transact with Pag-IBIG and I got overwhelmed with their list of requirements. Nonetheless, it would be helpful to inquire from them in advance to see how much you could borrow; this will all depend on how much your monthly income is.

Related Article:
Pag-IBIG Housing Loan: How Much Can You Borrow?
Buying a Condominium in the Philippines: In-House or Bank Financing?

Banks have lesser requirements, but your monthly income is of course still the biggest factor. Google “home loan calculator + name of your preferred bank”, and you will get links to the bank’s home loan calculator. Almost all banks have this in their websites. From there, you could get an idea of how much you could borrow and how big your monthly amortization be. Those are just estimates but not very far from the actual figures.



2. Credit HistoryBanks definitely check your banking and credit history. Pag-IBIG also do the same, but probably not as rigid as banks. Do you have unpaid or deferred credit cards? I did. It has caused me huge trouble but thankfully, I was able to fix it. CLICK HERE to find out how I cleared my credit card balance with HSBC.

Unfortunately, no bank will approve your home loan application if you have an unsettled credit card balance or other unpaid loans (with any bank). The good news is, they will honor a Certificate of Full Payment or “bank clearance”, you will find more details about this in the above link.

3. Co-borrower/s

When BPI approved my home loan application, they offered me Php1.7M. This is the maximum amount they could lend me based on my monthly salary. It was Php900,000 short as I needed to borrow Php2.6M. For some reason, they did not consider my sister as a co-borrower so her salary was not factored-in in the computation.

I submitted my application to UnionBank and they accepted my sister’s documents so she became my co-borrower. Since my sister is married, her husband’s signature was also needed in all the forms. Thankfully, he was cooperative enough, that is upon reassuring him that we will not hold him responsible of anything (although legally, he actually is).

Related Article:
What is a Consularized Special Power of Attorney?

So, unless your salary is big enough to cover everything, you may need a co-borrower to get approved of the total amount that you need. If you are not married, your parents and your siblings are the best and recommended options.

4. Processing Time and Move-in ScheduleSo your bank already approved your application, congratulations! The processing time from the day you signed the bank forms will take a month, or more, depending on how quick your developer responds and transmits your papers to your bank. Your first monthly amortization also normally starts a month from the day you signed the documents. Therefore, if your unit is advertised as ready for move-in, you should already be talking with the developer about your move-in date before you start paying the bank.

Related Article:
Buying a Condo Unit: What You Need to Know
Condo Living: Expectation vs Reality

In my case, my first monthly amortization is on December 29th. SMDC contacted me in January the following year targeting end of February as the turnover date. Come February, they contacted me again saying they are moving it to March. Imagine how furious I was when I received another letter in March stating that the turnover date was changed to April! I started calling them everyday trying not to be irate. I was at my wits when their contact center agent revealed that it has been rescheduled to May.

After several emails and phone calls, they eventually agreed to let me move-in in April 26. Yes, I had to make threats.

5. Move-in Fees and RequirementsYou will be paying a move-in fee which is often the three-month equivalent of your monthly dues. This is not an advance payment so you will still continue paying the monthly dues on your first month. Depending on the developer, you may also need to install the basics – grease trap, range hood, fire extinguisher and white curtains before you are cleared to occupy the unit. I talked about all the fees that you will encounter when buying a condo in this post:

All the Costs You Need to Know Before Buying a Condo

Are you also looking for a condo? Which developer? I hope you find these information helpful.