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Things to Consider before the Big Purchase

Condo or House: Which Suits You Best?
Things to Consider before the Big Purchase

September 05, 2022 | by HC Mutual

The past two years have further established the importance of having a safe and decent home. Filipinos have spent a lot of time at the four walls of their sanctuary due to the repeated lockdowns since 2020. Having your own safe space is a huge deal that is often overlooked by many of us. It is only fitting for home buyers, first-timers or not, to think about what type of home to invest in.

The usual debate that home buyers get into nowadays is whether to buy a condo or a house. Your decision will highly depend on your budget, location, lifestyle, and other preferences that you may have. If you are still undecided and in need of help, read on to find out the various factors that you should consider before making your big purchase.

Security
 

Most condominiums provide reliable security 24/7. All entrances are looked after by security guards. Living in a condo also gives you a sense of closeness with your neighbors as you can interact with them from time to time. You can also entrust your place to a next-door tenant if ever you plan on going away for a couple of days.

If you are more inclined to buy a house and lot, your level of security depends on the location that you choose. There are numerous high-end subdivisions and villages in Metro Manila that offer efficient security. If buying this type of property is within your budget, then this might suit you. For those of you with a smaller budget, there are also affordable houses in major cities and even in suburban areas particularly Rizal, Laguna, Cavite, and Bulacan. Not all of these have 24/7 security and are within gated communities but you can always find safe neighborhoods in these places.

Privacy
 

In terms of the privacy that you will enjoy, living in your own house can be more satisfying for people who prefer minimal interaction with neighbors. Since you’ll have your own space and you don’t have to interact with neighbors in common areas or facilities, it is possible to live in the neighborhood for months or even years without having to bond with the other residents. If you’re the type who values privacy and quiet time, a single storey residential house can be a good investment to have.

In condo living, you share the same floor and hallway with the other residents so you’ll pass by each other from time to time and encounter them in common areas like the gym, pool, and elevator. Not all units are built with soundproof walls so you may hear the noise from your neighbors. If you’re an extrovert who enjoys the constant presence of people around you, condo living can be enjoyable.

Interior Space
 

Some upscale condominiums are built with an interior that is comparable to some houses. However, it is still limited when it comes to your private outdoor space like a garden or parking space because you will be sharing it with the multiple residents in the building. Your interior can be as tiny as an 18 sq m studio unit. In general, condominium units have an average of 50 sq m floor area.

Owning a house gives you the privilege of having outdoor space for your dirty kitchen, garage, parking, or even a gym. If you compare a low cost condominium to a single residence, the latter has greater average living space for you to customize and transform into the house of your dreams. Owning a house is also considered as a better investment for families or couples who plan to build one in the future.

Cost & Additional Fees
 

In some prime locations in Metro Manila, condominiums are more affordable than houses and lots. The average price is around PHP 14.5 million while the average price for a condo unit is PHP 5.9 million.

In choosing between a condo and a single-detached house, also consider that in the long run, owning a condo might become more costly because of steep monthly association dues that cover the operational and maintenance of the entire condominium. Monthly dues in Metro Manila usually range from PHP 1,000 to PHP 8,000. The price depends on the unit size, condo location, and property developer.

Still there are many attractive and well-built, low cost affordable homes ranging from 1.5M to 5M. Likewise some nice but smaller condos can range from 1M to 4M.

Maintenance and Renovations
 

Living in a condominium allows you to only focus on taking care of your unit’s interior. You don’t have to worry about maintaining a garden, parking space, or veranda. On the other hand, owning a house gives you full responsibility for its overall maintenance.

Extension projects are not allowed in condominiums because the space is limited. Condo owners are only allowed to renovate within the boundaries of their unit. However, everything should be approved by the property management office.

Owning a house gives you more freedom to upgrade your living space whenever you want because its entirety is rightfully yours. Of course, the entire cost of maintenance and renovations will be yours, too.

Keep your precious first
home in top shape.

Get on track to achieving your dreams for the future with a flexible and hassle-free loan. The KayaMo Home Loan is designed to make it easy for Filipinos to own or build their first home.

  • Php 450,000 to Php 20M loan amount
  • Only 10% downpayment required for properties below 3M
  • Eligibility includes houses, condos or apartments, and even home repairs and renovations
LEARN MORE
Rights to the Property
 

Condo living is sharing ownership of land which is why the residents have to follow certain rules. Some of them include schedules for using common facilities like the gym and pools. Others have a limit on the kind and number of pets that you can have.

In contrast, buying a house and lot makes you the owner of an entire indoor and outdoor space. It’s an investment that you can pass on to your kids because the value of land steadily appreciates over time. This makes it a better long-term investment than a condo unit.

Accessibility
 

Condo living has become a trend, especially among millennials and those who live a fast-paced lifestyle. Most condominiums have convenience stores, laundry shops, and restaurants located on their ground floor so residents do not have to go somewhere else to do their errands.

A condominium’s accessibility and location are usually its main selling point. Most condominiums are located near or at the center of many commercial establishments and business districts. This makes it the top choice for individuals working in cities. When your home and office are very near to each other, you can save a lot of time and energy in commuting or driving to and from your workplace. On the other hand, living too close to your workplace can also make you stay in it longer than you should, which can also have some negative effects.

Most affordable houses and lots are located in suburban areas. If you’re a commuter who works in Metro Manila, this kind of location can be a bit of a burden since it is far from central business districts. However, this location gives you the privilege of being away from the hustle and bustle of urban living. You’ll be able to enjoy fresh air and more outdoor activities. Many individuals prefer buying single residence units in provinces near Metro Manila so they can enjoy easy access to peaceful views such as mountains, rice fields, and beaches.

There are a number of things to consider in choosing the home that’s right for you and your lifestyle. What’s important is to look at the long term—whether it’s a condo unit or a house and lot, each has its pros and cons so it’s important to carefully weigh which best serves your needs and meets your capability in investing.

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HC Mutual Home Loan Home Tips

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5 TIPS TO PRESERVE THE VALUE OF YOUR HOME

5 TIPS TO PRESERVE THE VALUE OF YOUR HOME

February 24, 2022 | by HC Mutual

One of the many goals of any average earning adult is to own a home and furnish it. Investing in your very first home can be considered as one of life’s most important milestones—a symbol of independence and financial stability. But what happens when you find yourself a new dream home in the future? What will you do with the current home you have?

Most homeowners only have need for one home at a time. Maintaining upkeep for two homes may prove to be too expensive, especially for first-time homeowners. When you find yourself wanting to upgrade to a bigger and better home, set up your old property for sale. Similar to upgrading gadgets, it’s best to sell your old device in order to make way for something better, and in order to get your money’s worth, it has to be in good condition. Same goes for houses. You have to maintain your house’s condition in the event that you want to sell it to someone else. Here are some tips for new home owners on how to protect the value of your home.

Protect your home from pests.

One of the biggest deterrents to prospective buyers are termites. Termites are pests that burrow themselves within the structure of your home and eat it from the inside out. One instance of termites within your home can be detrimental to its value, so you have to make sure your house is clean from termites or you won’t have a house to sell. Many pest control companies offer termite removal services to help you secure your home in no time.

Other pests like rats and insects can also be a turn off for prospective buyers. Make sure to regularly check your home for any invasive pests that can cause damage or disease by placing traps, or having professionals handle it.

Schedule regular electrical
and plumbing maintenance

Keeping up to date with the maintenance of fundamental house components is very important in preserving its value. Due to daily usage, some structures like piping and electrical wiring may be damaged in time. In some cases, wiring and water system faults may also cause more damage to other parts of the home, like its structural integrity. So before selling any house, be sure to have a professional survey and inspect your house’s electrical condition and to check its water systems condition, and make repairs if necessary, to make sure they are safe and functional.

Maintaining the exterior of your home

While maintaining the inside of your house is important, one mustn’t forget the importance of maintaining your house’s exterior. Potential buyers will be interested in the look and design of a house when viewed from the street, so conducting minor exterior maintenance regularly is a must for any homeowner.

Consider repainting your house’s exterior if the old paint has started chipping away. Updating your house’s color scheme to a more modern taste can also help attract Consider repainting your house’s exterior if the old paint has started chipping away. Updating your house’s color scheme to a more modern taste can also help attract more buyers. If your house has a front yard, you can start by trimming the grass or reworking the stone/gravel path.

 

more buyers. If your house has a front yard, you can start by trimming the grass or reworking the stone/gravel path.

If you’re setting up your property for any open house events, you may find yourself stressing about cleaning whenever a buyer wants to survey the inside of your property, so consider scheduling regular cleaning. This will not only help maintain your home’s atmosphere while you live in it, but also help preserve its property value. Well maintained homes have a better chance of selling at higher prices due to the appeal and the atmosphere it exudes.

Make sure you have the right
insurance coverage

Before you open up your house to potential buyers, be sure to double check the coverage of your property insurance, especially since natural disasters like typhoons and earthquakes are unavoidable when living in a tropical country. If your house is covered with the right insurance, you can assure your property’s value will not go down even when a calamity strikes. Making sure that your house is covered by insurance will help ease your mind and your potential buyer’s mind as well.

Plan on updating your house every few years

You may find yourself wanting to decorate your home to have it more personalized to your tastes. If you find yourself the type of person who might want to upgrade to a different house, instead of personalizing, try updating your house’s features every few years. The appliances and furnishings found in the house can be one way to both cater to your want of personalizing while also updating and upgrading your house. Different design and decorating trends pop out every few years, so it’s best to keep an eye out for those and to try and update your house to what’s in.

Here at HC Mutual, we believe that preserving your first property’s value can be your ticket to finding a better and more suited house for your house. Whether it be your first home or second, it’s important to keep these 5 tips in mind to ease your mind and to start your path towards financial stability.

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KayaMo Home Loan can help you start your journey on owning your first home, as well as in maintaining your home’s value by helping you pay for home upgrades or renovations. As an HC Mutual member, you can enjoy numerous benefits:

  • Easy application process
  • Access to our partners and a wide range
    of brand new homes
  • Flexibility to choose your own property
  • Payment holiday extensions
  • 1 year Accidental-Life Insurance
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HC Mutual Home Loan Home Tips

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Finding a Home in the New Normal: 6 Things to Look Out For

Finding a Home in the New Normal: 6 Things to Look Out For

September 27, 2021 | by HC Mutual

Owning a home is the dream for many Filipinos. But because of COVID-19, many of us have placed building or buying property on the back-burner to prioritise the essentials and to adjust to our world in the midst of a pandemic.

As we adapt to the new normal, people are coming back to the market to look for their dream homes—and we’re here to help you find the right fit for you if you are one of them. We’ve listed down some tips and things to look out for online when choosing or shopping for your new home.

1

Set your budget.

Before you browse listings or contact a real estate agent, set a budget to make sure that you can find a home with everything you need. Factor in the price of the property PLUS any additional expenses like taxes, renovations, insurance, and utilities.

First time buying a home? Read our guides on property fees and taxes and house shopping.

2

Double down on comparing interest rates.

Finding a nice home may make you want to close the deal immediately. However, look at your other options first and compare interest rates, prices, and the property’s value for money. Developers and sellers offer more competitive rates now because less people are actively looking to buy real estate.

3

Ask for photos, videos, or virtual tours.

Expect to look at homes or even close the deal without actually visiting the space because of restrictions and safety regulations. Don’t be afraid to ask for multiple photos and videos of the different parts of the home. Ask for close-ups and video calls to make sure that the property is in good condition.

Collect milestones in your first home.

Get on track to achieving your dreams for the future with a flexible and hassle-free loan. HC Mutual designed the KayaMo Home Loan to make it easier for Filipinos to own a home.

  • Php 450,000 to Php 20M loan amount
  • Payment holidays extension in case of emergencies
  • 1-year Accidental-Life Insurance coverage worth Php 500,000
LEARN MORE

4

Research the area’s internet providers.

One major factor to consider in our new normal is your internet connection. With online classes and the work from home setup for some employees, make sure that your WiFi is stable and can handle multiple device connections at all times.

5

Consider the number of rooms.

Your living space is especially important today. In case a member of your family needs to quarantine, would you have a designated room or area for self-isolation? Having enough space is also good for your family’s health and well-being in the long run. By preventing overcrowding in your home, you lower the risk of disease, stress, and sleep disorders.

6

Check the neighborhood’s accessibility.

With how unpredictable these times can be, having access to essential establishments like grocery stores and hospitals is vital. Alternatively, make sure that your home can be reached by couriers, food deliveries, and the like.

Above all else, consider what you want and need, your comfort, and your safety. These are the most important factors to consider because your home is where you build up the future with your family.

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First Home Home Loan Home Tips

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Alternative Financing: How Non-banking Options Like HC Mutual Can Help You

Alternative Financing:
How Non-banking Options Like HC Mutual Can Help You

March 31, 2021 | by HC Mutual

Saving and responsible borrowing are some of the most important things to consider for your financial growth. They help you build up a good credit score, prepare for emergencies, get you your first car or home, and most importantly, make sure that you can give your family a comfortable life.

But sometimes, saving or borrowing through traditional institutions like banks can be tough. The list of requirements is long, approvals are strict and often impossible with a damaged credit history; opening and maintaining a savings account can even cost you extra. 

If you find it difficult to access essential financial services because of these hurdles, rest easy—there are many options still available to you. Let us walk you through the basics of alternative financing and how this can help you achieve both your short-term and long-term financial goals.

What is alternative financing?

Nonbank or alternative financing are services, loans, or funds that are secured outside traditional banking. They can be provided by individuals, businesses, or financial institutions that are government-run or privately owned.

HC Mutual Building and Loan Association

is one of the many home-grown, non-banking institutions in the Philippines. We empower everyday Filipinos by helping them build up their savings and making sure that their dreams and financial goals are within their reach.

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How is alternative financing
different from banks?

Better access
Getting the funding you need can be as simple as a few taps on your phone. Many alternative lenders and nonbanks rely on technology, making their products and services available online.

More flexibility
While non-bank institutions still need to follow guidelines and rules, they can better personalize rates and fees, and create more options for different financial needs.

Easier application and approval
Alternative financing requires less documents, is more forgiving when it comes to credit, and can sometimes require lower down payments depending on what service or loan you are applying for.

HC Mutual, for example, understands what it means to live on a budget, paycheck-to-paycheck, which is why we adapt a holistic view on our members’ credit history and worth.

Less waiting time
Alternative financing can release loans or provide funding within a few days. And in some cases, like the KayaMo Home Loan and KayaMo Cash Loan, within 24 hours of approval.

A world of possibilities: Alternative Financing Services

There is a wide range of non-banking services available to you. We’ve listed down the essentials to help you get started:

Building and Loan Associations

The main purpose of these financial institutions, like HC Mutual, is to make owning, purchasing, or building a home easier for more people, especially those who may be underbanked. Individuals or members subscribe to a number of shares for a time frame of their choice, investments that grow through interest, which members can then claim after maturity. As a benefit of being a shareholder, they also gain access to the institution’s loans and financial services.

Digital wallets

In this age where cashless payments are prevalent, nonbanks enable digital money management without having to open a savings account that requires a maintaining balance.

Personal, salary, and mortgage loans

Applying and receiving loans through alternative financing is easier and faster, with many financial institutions offering more flexible terms.

Business loans

Small businesses often have a harder time getting loans from banks. But by opting for alternative financing, even burgeoning entrepreneurs can get the capital they need to kickoff their business.

Peer-to-peer (P2P) lending platforms

P2P or crowd lending offers the same benefits as any alternative financing service, but with lower interest rates. This is possible because P2P platforms do not own the loans—they simply connect alternative lenders to borrowers.

Ask before you leap
We understand that going to the nearest nonbank can be tempting right now. But to make sure that you can make the most out of your hard-earned money, look out for these three points:

1. Interest rates – Alternative lenders can afford faster approvals and funding because of their interest rates. Before choosing a financial institution, make sure to look at your options and compare their fees and rates.

2. Transparency and simplicity – Did they clearly state and list down the fees and interest rates? Are the terms and conditions easy to understand?

3. Credibility – Try asking around or reading online articles. Have people ever worked with this financial institution before? Are they trustworthy? What are other customers saying about them?

Final Thoughts

Traditional banks will always be our first thought when it comes to loans and savings. But when getting access to crucial financial services becomes difficult, you can always look at different avenues. There are many options available that are safe, secure, and reliable—just make sure to ask around and research, and you’ll surely find the best fit for you and your financial goals.

TH 1
Price: Php 3,415,000

We’d love to talk to you more about this HC Mutual-Acquired listing. Kindly fill out the form below and a member of our team will give you a call to discuss details.

Thank you for your interest.

We will be in touch with you soon to discuss more about your chosen home listing. Looking forward to talking to you!

Tags
Cash Loan HC Mutual Home Loan Personal Finance

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Bayanihan to Recover as One Act: Together, we can overcome any hurdle.

Bayanihan to Recover as One Act:
Together, we can overcome any hurdle.

October 16, 2020 | by HC Mutual

As part of the Bayanihan to Recover as One Act (R.A. No. 11494), you could get a one-time 60-day grace period for your loans if needed. This grace period is open only to qualified members with active cash loans and mortgages, as well as current loan accounts with payments expected between September 15 to December 31, 2020.

Rest assured that you will not incur any additional interest, penalties, fees, or other charges from this grace period. However, interest accrued for cash loans and/or mortgages during the 60 days should still be paid by December 31, 2020. You may choose to complete your payments for rescheduled due dates in full or through a staggered basis.

We are here for you.

Should you wish to avail of the 60-day grace period, kindly contact us on or before October 26, 2020.
Email address: callcntr@homecredit.com.ph
Trunkline: (02) 8771 1190 to 95
Mobile: 0917 883 6970
Office hours: Monday – Friday, 9AM – 4PM

Applying for this grace period benefit is completely optional. We will continue to process payments under Auto Debit Arrangements (ADA) or Post Dated Checks (PDC) unless you notify us of your wish to opt in.

The deadline for applications for the grace period benefit is until October 26, 2020 only.

Get in touch so that we may discuss any clarifications and revisit the payment terms of your loan. It is our pleasure to find the best way to provide you with the support you need to weather these challenging times.

Learn more about the BARO Act.

For more information, please feel free to download these files and read about the Bayanihan to Recover as One Act (R.A. No. 11494).

BSP Memo 2020-68
BSP Memo 2020-74
Tags
BARO Act Cash Loan HC Mutual News Home Loan

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House hunting made easy: Listings for the first-time home buyer

House hunting made easy:
Listings for the first-time home buyer

October 6, 2020 | by HC Mutual

Looking at different properties and deciding on your first home is an exciting journey. It may seem overwhelming, but with careful planning and good saving habits, you can find the best match for your budget without compromising your family’s comfort and happiness. Let’s get you started on your search with our recommended listings.

The first things to consider

Your house hunting begins with knowing what you’re looking for. List down what your family needs in terms of location and house size, consider distance from schools and your workplace, and balance those out with your goals and budget.

As you browse listings, ask yourself:
  • How much is your price range?
  • Is the property worth its price?
  • How many will be living in this house?
  • Will your family be comfortable living here?
  • What are your deal breakers?
  • Are you happy with this property?
Where can you start?

Acquired properties are usually more affordable than newly built projects. You are most likely to find a house in good condition and with flexible payment options. To help you begin your search for your first home, you can take a look at these HC Mutual-Acquired home listings:

TH 1

If your focus is on convenience and accessibility, the TH 1 is only a 10-minute drive away from schools, hospitals, malls, churches, and more. Located in Marikina, this property is guaranteed to be in a safe and clean community.

Location: Marikina

Lot Area: 52 sqm.Floor Area: 68 sqm.

Features:

  • 3 bedrooms
  • 2 bathrooms and toilets
Price: Php 3,415,000
I’M INTERESTED
TH 2
TH 2

For families that prefer serene settings without sacrificing convenience, try taking a look at the TH 2. It is found along a quiet street in an exclusive compound near schools, commercial establishments, and hospitals.

Location: Marikina

Lot Area: 52 sqm.Floor Area: 68 sqm.

Features:

  • 3 bedrooms
  • 2 bathrooms and toilets
Price: Php 3,415,000
I’M INTERESTED
RFP 1
RFO 1

If your priority is security and peace of mind, the RFO 1 is found in a safe community that boasts guards on a 24/7 rotation.

Location: Marikina

Lot Area: 91 sqm.Floor Area: 136 sqm.

Features:

  • 3 bedrooms
  • 3 bathrooms and toilets
Price: Php 5,900,000
RFO 2

If your priority is security and peace of mind, the RFO 2 is found in a safe community that boasts guards on a 24/7 rotation.

Location: Marikina

Lot Area: 91 sqm.Floor Area: 122 sqm.

Features:

  • 3 bedrooms
  • 3 bathrooms and toilets
Price: Php 5,600,000

Take the first step towards
a brighter future.

We believe that every Filipino deserves to live peacefully in their own home, which is why we’ve made it easier for HC Mutual members to buy or build theirs with the KayaMo Home Loan. This hassle-free offer focuses on your long-term goals and financial mobility:

  • Loan amount up to 80% of the property’s Total Contract Price
  • Down payment of 10% to move in, with 0% interest for the remaining DP amount
  • Fixed rate for the entire loan term
  • Payment Holidays for your peace of mind during emergencies or financial difficulties

Learn more about the HC Mutual-Acquired Homes listed above or apply for the KayaMo Home Loan by sending us a message at mortgage@homecredit.com.ph or calling (02) 8771-1190 today.

TH 1
Price: Php 3,415,000

We’d love to talk to you more about this HC Mutual-Acquired listing. Kindly fill out the form below and a member of our team will give you a call to discuss details.

Thank you for your interest.

We will be in touch with you soon to discuss more about your chosen home listing. Looking forward to talking to you!

Tags
First Home Home Listings Home Loan

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HOME BUYING 101: A Guide to Buying your First Home

HOME BUYING 101: A Guide to Buying your First Home

July 6, 2020 | by HC Mutual

Part 1: House shopping

What to look for in finding the perfect first house for you

Buying your first home is not something you can rush into. We understand that it is an important milestone—something to show as proof of financial responsibility and capability, a rite into full adulthood, as it is. But this is all the more reason to take your time. Buying a house, especially for the first time, is a big commitment that takes a lot of work and preparation. It can be a smart move for the long term, but only if you fully understand what you’re getting into.

This is the first part of a series of our complete guide to help you buy your first home and reach an important milestone in your life—and ensure that it will be a step towards a good future.

How do I know if I’m ready?

This is the first, and probably one of the more difficult questions in starting your journey as a first time homeowner. While there is much to think about, you can start here.

Step 1: Ask yourself if it’s time for you to buy a home
We get it. Achieving milestones at work, thinking of your age, and grappling with peer (and family) pressure can be pushing you to consider buying a house now. But why do you really want to buy a house? The only reason that matters is if you are ready to be a homeowner, and ready to commit to everything that it entails—psychologically and financially. (If you are feeling anxious about “burning money” paying rent, think of it this way: they are both ways to have a place to live, each with their own pros and cons.)

Step 2: Ask yourself how you can afford a house
A home loan (or mortgage) is not something to be taken lightly. It is a commitment that takes 15 to 30 years. Before you even consider buying, you would have to have good credit, a steady income, and a sizable amount of cash for down payment which can range from 10% to 40% of the price tag. On top of that, there’s also the closing cost to take into consideration, which can run from 1.5% to 3.5%. Research financing options available to you and look at which fits. The KayaMo Home Loan is specially designed for first time home buyers; HC Mutual also looks at your current credit standing, not your history, when you apply for a loan.

Try a home loan calculator or consult a financial advisor to see if you can afford a home (or how much home you can afford) given your income and credit score, versus different loan term options and the down payment amount you are able or willing to cash out.

Step 3: Start with your dream house—and work backwards
Having an ideal “dream” home is just as important as thinking realistically about being able to get it. The key to finding the sweet spot is to separate your needs and wants in a house. Understanding what’s truly important to you can help you compromise based on your budget. Here are some things to consider:

  • Basic requirements (e.g. size (sqm), number of bedrooms and bathrooms)
  • Location and accessible amenities
  • Structural features (e.g. no. of stories, basement and/or garage, ventilation)
  • Exterior and interior features (e.g. pool, garden, flooring type, accessibility features)
Tips for shopping for your first home

Once you have decided that you are ready to own a house, then it’s time to look at your options.

1. Pick the right type of house for you
What kind of future are you seeing in this house? Perhaps you are looking to start a family and want a nice yard and ample space in a single detached home. But if you want easier maintenance and extra amenities and perks (and if your lifestyle can support the extra cost and less space), then you might want to consider a condo or a townhouse.

2. Check the neighborhood
Remember, this will be your home for a good chunk of your life, so you need to make sure that the neighborhood you pick will be a good fit for you.

  • Look up safety and crime statistics. This is a given, especially if you are planning to start a family. Go around and talk to the barangay or local enforcers to get a good picture of the security of surrounding areas.
  • Map out the available amenities. What do you need near you? Look for the nearest hospitals and clinics, grocery stores, pharmacies, churches, train and bus stations, parking spaces, etc.
  • Research nearby schools. Even if you don’t have (or are not planning to have) kids, this affects home value in the long term.
  • Visit the area or drive down through the neighborhood at different times of day so you can assess the traffic, activity, and noise in the area. Drive or commute to or from the location to assess how accessible it is and how long it takes to go to work or school. Transportation also factors into your living expenses.

3. Stick to your budget
Your pre-approved loan amount should be the ceiling when you’re house shopping and comparing prices. Aside from buying the house, you have to consider how much it costs to move into that house and live in it. In general, look at property valued less than your ceiling to make room in your budget for homeownership expenses such as:

  • Bills and utility payments
  • Home insurance
  • Maintenance and general upkeep of the home (e.g. paint, plumbing, etc.)
  • Emergencies (such as broken appliances)

It is important to consider these monthly and periodic expenses especially right after buying the house as your finances dip and shift drastically. For this crucial moment, HC Mutual offers the KayaMo Saver’s Plan to help you build up your savings and borrow against it when you need it for repairs and improvements in the future (you can usually expect these expenses within the first 5 years of moving into your new house).

Ultimately, being firm with your budget will save you from getting stuck for years paying a mortgage you can’t afford, and not being able to build your savings as a consequence.

Quick Tip!
If you’re buying from a seller and you’ve fallen in love with a house, you may be tempted to bid high at once to ensure that you win. Don’t. As long as you shop within your budget, you can give yourself some wiggle room to bid higher only if needed.

Lastly, find a good agent that you get along well with and discuss your questions and concerns comfortably. Someone who is skilled, motivated, and knowledgeable on your side is indispensable in finding the right home just for you.

Next in this series:


Part 2: Getting your finances in order
Saving and preparing to buy your first home

Part 3: How to avoid common home buying mistakes
General tips and how-to’s of being a smart first-time buyer

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For First-time Home Buyers: Property Fees and Taxes

For First-time Home Buyers: Property Fees and Taxes

June 15, 2020 | by HC Mutual

Saving up for your first home? As you plan your budget, keep in mind that there are fees that have to be settled before and after closing the deal. To help you prepare for this major milestone in life, we’ve made a list of the added costs and common taxes when buying property.

Reservation Fee
This ensures that the home you’ve been eyeing is taken off the market and reserved under your name. Reservation fees vary depending on the value of the property, and may sometimes be deducted from your down payment total. Some developers and sellers may set reservation fees ranging from Php 5,000 to Php 25,000 or higher.

Documentary Stamps Tax
Tax on papers, documents, and agreements that prove the acceptance, sale, and transfer of property ownership from the seller’s name to yours. The DST is 1.5% of either your home’s selling price, fair market value, or zonal value, whichever is higher.

Transfer Tax
Even when you’re buying a brand-new home, you still need to pay this tax to transfer home ownership to your name. Transfer tax varies depending on your location, and may range from 0.5% to 0.75% of the property’s price, fair market value, or zonal value (whichever is higher).

Keep in mind that this tax is paid to the Local Treasurer’s Office. You only owe transfer tax to the Bureau of Internal Revenue (BIR) if the property was donated to you.

Notary Fee
To guarantee the authenticity of your transaction, the Deed of Absolute Sale should be notarized. Fees range from 1% to 1.5% of your chosen home’s price.

Title Registration Fee
When this fee is due, you know that you are only a few days away from owning your first home. The title registration fee is paid to officially list the property’s title under your name. This is usually set at 0.25% of the selling price, fair market value, or zonal value of your home, whichever is higher.

Real Property Tax
You might know this tax as amilyar, a fee paid to your Local Government Unit each year. In Metro Manila, the regular rate is 2% of your home’s total assessed value (also referred to as taxable value). 1% is taxed for properties in provinces.

Home and Life Insurance
Insurance companies, banks, and financial institutions provide different packages. Before choosing one, get to know the full details of what they are offering you. Most lenders carry fire insurance; however, it’s best to opt for more comprehensive coverage. Consider getting fire and water insurance to include acts of god, vandalism, and more. Investing in extra protection can get you and your family through unexpected moments and give you peace of mind.

Some entities also offer discounted fees for life insurance, while others include them as a loan benefit. For instance, the HC Mutual KayaMo Home Loan covers 1-year Accidental-Life Insurance worth Php 500,000.

The list of fees and taxes may seem overwhelming, but it pays to be an informed home buyer. By understanding what you need to factor into your budget, you can decide on a home that perfectly fits your goals and financial capacity.

Note: Fees and taxes vary depending on your property and financing program.
Article sources: Lamudi, My Property PH, Bureau of Internal Revenue

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Taking the leap: Are you ready for your first home?

Taking the leap: Are you ready for your first home?

May 22, 2020 | by HC Mutual

Choosing to buy your first home is one of the biggest decisions of your life. It is a commitment and a dream come true, which is why
you need to make sure that you’re ready before taking this major step.

There are many things to consider before going out to house-hunt: your savings, available properties, and your family’s preferences.
To prepare you for this life-changing move, here are a few questions that you can ask before buying your first home.

What kind of house do you want?
Knowing exactly what you want and what your family needs can
work wonders on your financial plans. Factor in the plot size,
floor area, configuration, and location of a potential home
when budget-planning to help balance costs to what you’ll
spend living in it. Consider the household’s accessibility, fuel
and transportation expenses, monthly bills, and other
day-to-day expenses.

Have you compared property prices?
Be sure that you’re getting a fair price for your home. Research
similarly sized properties in different areas and neighborhoods.
Make a list of your options and weigh out the pros and cons.
What are the amenities? Are there other inclusions? How long
has it been on the market? By comparing houses and taking
time to make an informed decision, you can get the most out of
what you’re paying for.

How will your savings look after your purchase?
A good place to start when buying a house is where you’ll be financially after you sign the deal. Will you still have enough for utilities,
essentials, and additional fees? Being ready for your first home goes beyond meeting its market price. Look at how much you’ll have
left for your monthly budget and savings.

How stable is your source of income?
Before making your decision, secure a steady and long-term
source of income. How many people are earning for the
household? Do you share bills and split living expenses? Having a
stable livelihood on top of your savings will ensure a happy and
comfortable life for your family in the long run.

Are you ready for lifestyle changes?
The process of paying for and maintaining your property can
greatly affect your lifestyle, especially for the first few months.
Review your monthly budget and consider: Do you need to lower
your mobile data plans, allocate more for utilities, or spend less on
leisure activities? Evaluate what changes can be made to cushion
your savings as you settle in your new home.

Have you considered your financing options?
One way to ease the financial load when buying a house is to apply for a loan. Look at the interest rate, payment terms, and loan
amount. Does it cover what you need? How does it fit into your budget? We at HC Mutual take these into consideration. We have
offers like the KayaMo Home Loan—with flexible terms and a wide range of partner home developers—to provide a smooth-sailing
journey to your first home.

Owning a place that you can proudly call yours is a major milestone. It is a decision best made with your family and an investment
that can last through generations. You don’t have to rush into it. Give yourself enough time to work through your financial goals at
your pace and build up enough savings before taking the leap.

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Keeping your family healthy in your first home

Keeping your family healthy in your first home

May 11, 2020 | by HC Mutual

Every Filipino deserves to enjoy comfortable and worry-free lives in their own homes. Your living space is where you nurture and
share milestones with your family, which is why it is important that your home is equipped to protect you and your loved ones from
disease and illness.

The World Health Organization (WHO) has developed evidence-based recommendations on housing and health to make sure your
home is safe and healthy. Check out these guidelines to know what to look for while house-hunting or updating your home.

Regulate indoor temperature
With our country’s hot climate, we need to be mindful of indoor temperatures. If your home runs too hot, you risk dehydration, heat stroke, and other pulmonary disease. It may also affect sleep quality and the immune system, especially for children and the elderly. To help cool down, WHO recommends proper ventilation (and taking advantage of the night air), window shades, green spaces, and thermal insulation.

Prevent household crowding
This aspect of housing covers the size and capacity of your home. Studies show that crowding may increase the risk of disease, sleep disorders, and stress. Before choosing or building your home, it is best to take your family’s numbers into consideration.

Remove injury hazards
Globally, about a third of injuries occur at home. However, you can minimize this risk by freeing your space of hazards like uneven flooring and steps, inadequate lighting, and unprotected hot surfaces. Prevent home injuries by adding gates and stoppers on your stairs, guards on stoves, and child-safety locks on your doors and windows. It is also best to inspect your floors to make sure that they aren’t too slippery especially when wet.

Make your home accessible
An accessible environment can help persons with disabilities enjoy better health, accomplish everyday tasks easier, and improve their quality of life. You can start by adding hand railings, ramps for stairs, safety frames on your toilets, and push/pull door handles. You can also rearrange your furniture for easier access or adjust indoor lighting, depending on each room or family member’s specific needs.

Have clean water at hand
Access to clean water is one of the most important things to consider when moving into your home. It is optimal to have at least one water supply and multiple taps within the house to sustain hydration, prepare food, and maintain personal hygiene.

Improve indoor air quality
Damp and dusty surroundings, food preparation, and smoking can pollute your home’s air, which may then lead to a weakened immune system, allergies, and disease. To combat these risks and to improve air quality, it is recommended to have proper ventilation, prevent smoking indoors (especially around children), and to keep your living spaces clean.

A happy and carefree life begins with good health. Cherish your loved ones by making sure your first home is up to standard and conducive to the well-being of the whole family.

Source: WHO Housing and Health Guidelines (2018)

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