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Beware of Scammer Tricks!

Beware of Scammer Tricks!
Tips to Avoid Falling Victim to Scams

June 22, 2023 | by HC Mutual

Have you experienced getting a text message from an unknown number stating that you won a cash prize from a raffle you don’t remember joining? How about an email from an online shop asking you to click a link to claim your discount? Or a phone call from a “bank representative” asking you for some of your personal details?

These are some common examples of scams that result in the victim’s loss of funds, or even identity theft. It is easier to fall into these traps nowadays because scammers know more ways of fooling people: They can do it through text messages, chat, emails, calls, posts, fake websites, and more.

This should serve as a wake up call to everyone. If scammers are coming up with more creative schemes, it would be best for you to be more vigilant and knowledgeable about the effective ways in avoiding scams. Here are some tips that you should know!  
1. Familiarize yourself with the latest form of scams.
Scammers have become more creative with their strategies. Here are some of the most common scams that you should avoid:
  • Online purchase scams – Customers are tempted to avail unrealistic deals but the products do not arrive.
  • Loan scams – Customers are offered affordable loans online but they are required to provide their personal details and monetary deposit first before the loan is processed.
  • Social scams – Scammers impersonate your family or friends online or through text messages then ask you for financial help to get out of an emergency. 
  • Impersonation scams – Scammers pretend to be bank representatives and convince you to avail of credit cards or give your personal information so they can assist you in preventing your account from being locked. 
Other forms of scams include fake websites that require you to supply your personal details and credit card details (also called “phishing” websites), fake sellers in social media, and malicious pop-ups. Always be aware of the different ways scammers can reach you so you can avoid falling into their illegal schemes. 
2.Update and secure the login credentials of all your accounts.
Most mobile banking apps encourage you to update your passwords after a given period of time. Make sure to follow this practice to improve the security of your accounts.   It would also be best to keep track of all your passwords in your mobile banking app, email, and social media accounts. Secure them in a list only you can access and avoid saving your passwords in your devices. Enable two-factor authentication or use an authenticator app so it won’t be easy for hackers to open your accounts. Lastly, connect to your mobile banking accounts using only a trusted WiFi source; using a public WiFi hotspot offers less security.
3.Always check the senders of the text messages, emails, and chats you receive.

Before replying and clicking any links within the message, double-check the senders of the text messages, emails, and chats you receive. Most scammers can now create emails that appear to be from legitimate sources, with minimal differences compared to official company email addresses.


Here are some of the red flags that you should watch out for:

  • Misspelled words or grammatical errors in text messages, chats, or emails
  • Signs of urgency
  • Requests for sensitive/personal information
  • Sketchy links or email addresses
  • Deals that are too good to be true

In terms of text messages and chats, avoid interacting with unknown numbers and users. Official companies usually have registered contact numbers that appear on your mobile phones when they message or call you.

4.Update and secure the login credentials of all your accounts.
A fake support call usually comes with a warning that they cannot help you if you do not give them your personal details immediately. Banks, e-wallets, and other service providers will not ask for your birthday, account numbers, passwords, OTP’s, and the like. Drop the call and check your accounts for any unauthorized transactions. You can also report the incident to the company being impersonated in the fake support call.

5.In terms of choosing where to put your money, choose a savings account that is proven to be secure.
HC Mutual ensures its members that their hard-earned money is always safe. Aside from this, you can also grow your savings with good interest rates! Choose the plan that works best for you and start building the life you aspire to have.
  • Flexible payments terms of 3, 5, or 7 years
  • 3% earnings from your savings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase
with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan
LEARN MORE

Always be aware and careful with who you interact with online or through texts and calls. Be suspicious by default so you can meticulously assess the credibility of the person trying to interact with you. Scammers can be more creative with their schemes, but if you practice being more vigilant, you can avoid falling for their tricks. 

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Why Budgeting Should be a Part of Your Holiday Planning

Empower Yourself through Financial Discipline
Practical Tips to Grow Your Savings and Reach Your Financial Goals

May 26, 2023 | by HC Mutual

Being financially disciplined takes a lot of work and patience. In our current economy, it is tempting to park our savings goal and concentrate on attaining our needs and buying the things that we want. However, the best way to get our money’s worth is if we pay ourselves first. 

Reaching a substantial savings goal can be very rewarding. Just imagine what you can do—like purchasing your dream car or house, going to your dream destination, or taking a break from working for a while. 

Your progress highly depends on your commitment, patience, and motivation to grow your savings. To help you stay committed to being financially disciplined, here are some easy-to-follow tips! 

1. Always set a clear distinction between your needs and wants.
 

This helps set your priorities straight. When you clearly and regularly categorize your needs and wants, you can avoid spending on items or services that you don’t need for the week or the month. You can easily identify what to pay or purchase first before considering the rest of the items or services on your list. 

If ever you want to buy items that you don’t need, wait for a day or two before deciding to buy it so you can make sure that your priorities come first. 

Have a copy of your list of needs on your smartphone so you can take a look at it every time you think of buying something.

2. Categorize your financial goals into three:
short-term, mid-term, and long-term.

Categorizing your goals helps in realizing your priorities. Here’s an example of how you can categorize your goals:

With clear and categorized goals, it’s easier to be reminded of why you’re
saving and get motivated to develop wise spending habits.

3.Track your progress monthly and give yourself simple rewards for your accomplishments.

 

It’s important to make sure that you’re on track to growing your savings and achieving your goals. Practice monitoring your expenditures and savings regularly so you can identify what practices work for you and in which areas you need to improve. 

Most people find it greatly motivating to visualize progress. You can use a notebook or board as your tracker. Get creative with it so there’s an element of fun whenever you mark your settled payments or purchases. You can also use free digital tracker apps so you can double-check it wherever you are. 

Of course, nothing’s better than having your hard work rewarded! Whenever you’re able to pay all your bills or reach your target savings for the previous months, treat yourself by going to your favorite restaurant, buying new clothes, going to the cinema, or anything that can motivate you.

4.Open a rewarding savings account.

 

It’s best to have a part of your financial discipline on autopilot. This assures that you will always pay yourself first every time you receive your monthly income. Having a savings account with good interest rates also helps you grow your savings and achieve your financial goals sooner. 

HC Mutual offers flexible and affordable plans that help you manage your finances effectively so you can start building the life you aspire to have. Choose the plan that works best for you and watch your savings grow.

  • Flexible payments terms of 3, 5, or 7 years
  • 3% earnings from your savings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase
with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan
LEARN MORE

Staying committed to being financially disciplined and growing your savings can be daunting but with
effective strategies and tools, you can effortlessly integrate it into your daily life until you can finally experience its fulfilling results.

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Start Your Journey Towards Financial Discipline

Start Your Journey Towards Financial Discipline
Effective Strategies to Develop Smart Money Habits

January 25, 2023 | by HC Mutual

Developing financial discipline is one of the best things you can do for yourself. It refers to the ability to take charge of your income and expenditures: understanding how much money you earn and spend and how much you should save and invest. It also involves veering away from bad spending habits and including mindful spending in your daily lives.

It might sound difficult to attain knowing that the economic impact of the pandemic is still experienced by everyone. However, you can start gradually by building up wise spending habits one by one until it becomes part of your daily life. The sacrifices are worth it in the long run—having financial discipline enables you to achieve your financial goals sooner. It also helps you acquire financial security that eventually empowers you to create the life you aspire to have.

To help you get a good start, here are effective ways in developing financial discipline:

1. Educate yourself.
 

Learn how to manage your finances from different resources. Read books or credible websites, watch informative videos, listen to podcasts, or talk to people you know who have mastered financial discipline. Choose the practices that you believe will work for your lifestyle and slowly integrate it into your habits. Avoid being too hard on yourself if you can’t get the hang of it immediately—building discipline requires utmost patience.

2. Eliminate unnecessary expenses.
 

Committing to financial discipline comes with delaying or letting go of expenses that you don’t need. Here are some tips:

  • Unsubscribe from paid applications or premium accounts that you don’t always use.
  • Reduce the number of online shopping apps on your phone.
  • Learn how to cook affordable and easy-to-prepare meals so you have other options aside from dining out or using food delivery apps.
  • Don’t feel obligated to buy something that’s on sale. Wait until you have the budget for it.
  • Avoid buying the latest clothes, shoes, or gadgets if you still have a lot to use and have no other reason for buying it aside from the fact that it’s on-trend.

Reducing your unnecessary expenses does not mean that you cannot have fun using your hard-earned money. Its main goal is for you to establish a balance between spending for fun and spending wisely.

3. Set specific and realistic financial goals.
 

Having specific and realistic goals are more motivating because they are more attainable, and could give you the confidence and feeling of achievement that is necessary for effectively changing your spending habits. You can start by categorizing your goals into short-term and long-term goals so you know which ones to prioritize. Take a look at this sample list:

Short-term goals

  • Create a weekly/monthly budget
  • Pay off existing debts and credit card bills
  • Set up an emergency fund

Long-term goals

  • Buy a property
  • Travel abroad
  • Seek sound investments
4. Protect and grow your savings.
 

Put up a savings plan that will help you achieve your financial goals and help you build the discipline of saving. You can set in your mind to not touch that fund, all while it earns interest. HC Mutual offers flexible and affordable plans that help you manage your finances effectively so you can start building the life you aspire to have. Choose the plan that works best for you and watch your savings grow.

Secure your future with
  • Flexible payment terms of 3, 5, or 7 years
  • 3% earnings per annum
  • Easy saving through payroll deduction automatic debit arrangement, or payment through any U Store branch nationwide
LEARN MORE

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan

LEARN MORE

Starting your journey towards developing financial discipline may be difficult at first but with the proper motivation and strategies to guide you, it will be easier to master and until it becomes second nature to apply it in your daily life.

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Why Budgeting Should be a Part of Your Holiday Planning

Why Budgeting Should be a Part of Your Holiday Planning
Useful Tips to Avoid Going Broke after the Holidays

November 23, 2022 | by HC Mutual

Christmas is fast approaching. As early as now, Filipinos are starting to brace themselves for the happiest and busiest time of the year. Parties, events, and celebrations are filling up your calendar, and now that COVID-19 restrictions have loosened compared to the previous years, it goes without saying that Filipinos are bound to go all out.

Quick reality check: planning and attending this series of festivities entails bigger expenses. While it’s a given that food, gifts, and travel are anticipated costs, there will be unexpected expenses that might hurt your wallet. Given today’s economy, it’s much wiser to plan your holiday spending in advance, so that you can fully enjoy the season without risking financial security.

While making the most out of the season is your priority, it’s also important to consider what happens next. If you overindulge, there’s a good chance you’re sacrificing your financial stability for the following year. You don’t want to welcome 2023 with unpaid bills, do you?

To help you achieve stress-free holiday spending, here are some budgeting tips:
1. Take advantage of the best holiday deals as early as now.
 

It’s true that during this season, temptations are in every corner of the real and digital world. Brands and businesses come up with their own ways to get you to buy something from them. Flash sales, holiday contests, and product bundles line up to capture the attention of eager-to-spend Filipinos.

With proper financial planning, you can take advantage of this endless arrival of holiday deals. You’ll enjoy more flexibility when you go out to shop. You can decide which sales promos provide more value for your money. With no pressure to spend just because time is running out, you’ll walk out of the mall feeling satisfied with the decisions you’ve made.

2. Create a list of expenses to monitor your budget.
 

Christmas is the most wonderful time of the year. For some, it can also be a stressful one, because you get twice as many of your usual commitments. There are financial decisions you have to make here and there, and it can definitely take the fun out of the season.

Building a holiday-specific budget lets you make your potential purchases more predictable. By creating a list of expenses and categorizing them according to importance, you’ll have a solid plan as to how you and your family can ensure enjoyment without being caught off-guard, money-wise.

3. Spend responsibly using the 50-30-20 rule.
 

A realistic holiday budget lets you know if you’re on the brink of overspending. It allows you to track your purchases, thus preventing you from damaging your savings. It’s important to remember that the Christmas season only lasts for a while. Sooner or later, the holiday decorations will be taken down, Christmas carols will stop playing, and everyone will go back to their usual routine.

If you’re looking for ways to spend responsibly, the 50-30-20 rule is a surefire way to build a budget that goes far beyond the holidays. This easy and efficient budgeting method divides your income into categories: 50% for needs, 30% for wants, and 20% for debt payment and savings.

And if you have yet to acquire a savings plan, HC Mutual provides fast, affordable, and hassle-free financial services that help you save money effectively and sustainably. Through its 5ave Up! program, you can build disciplined savings, and be on your way to the life you deserve.

Save up and earn big for that dream house, dream vacation, or dream purchase with HC Mutual!

  • Start saving at Php 2,424, Php 4,848, or Php 7,272 per month
  • 5-year plan
  • 5% per annum after 5 years and upon completion of the savings plan

Everyone expects this Christmas to be merrier than the previous ones. Throughout the season, you might find yourself itching to spend excessively. Let your priorities be your guide. Start a budget and be wise in your spending decisions.

Merry Christmas, everyone!

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Wise Spending on the Season of Giving

Wise Spending on the Season of Giving
Tips on How to Save Money during the Holiday Rush

September 22, 2022 | by HC Mutual

For Filipinos, Christmas is always a season of giving and in whatever situation the country is, holiday traditions remain alive in most Filipino homes.

People consider end-of-the-year festivities as their reward for overcoming another year—justifying the reasons to celebrate it through parties, family gatherings, and gift giving. The upcoming 13th month pay and other bonuses that employees will receive makes it even more tempting to go extra; it is not uncommon for many Filipinos to go all out and spend all their money for special occasions.

This is a hard habit to break—but considering the state of our economy in the past years, it is wiser to include savings as part of your gift to yourself this upcoming holiday season. Here are some of our tips for saving even during the season of spending:

Watch out for holiday sales.
 

Buying gifts does not need to burn your pockets empty. You can start by taking advantage of the shopping season: there will inevitably be massive sales, promos, and discounts both in shopping malls and online shops. Even before December, you can already spot deals on many items like gadgets, clothes, home essentials, and appliances. Buying on-sale items also lets you buy in bulk for a cheaper price so you can get everyone something for the holidays.

Stay-at-home dinner is the new cool.
 

Another money-saving practice is doing a home potluck rather than eating at restaurants. Since you can choose where to buy the ingredients for your recipes, it will be cheaper than eating out. As a bonus, you can choose to celebrate at home or in another preferred location instead of scrambling in the crowds or stressing to get reservations.

Unleash your creativity.
 

The holiday season is the time of the year when people spend a lot of time with their families. It is a good idea to bond over new money-saving holiday traditions while adding more fun to the mix: Instead of buying gifts, you can choose to be more creative and give each other homemade presents for Secret Santa.

Homemade gifts such as custom-painted coasters, phone cases, plates, mugs, scented soaps, bath bombs, and jewelry are also more personal because you can create it according to the personality of the receiver.

Reward yourself with a savings plan.
 

One of the best gifts you can give to yourself and to your loved ones is a savings plan. Instead of spending a huge amount on material things, it is smarter to secure your future as a gift to your future self and those you care about.

HC Mutual provides fast, affordable, and hassle-free financial services and loans that help you save money and achieve your goals. If you are aiming to purchase your dream home or car, the KayaMo Saver’s Plan can help you acquire it faster. Aside from its easy saving options and flexible payment terms, you can also enjoy access to KayaMo Family Saver’s Plan which extends the full member benefits to your relatives.

Avoid spending all your cash at once.
 

If you are planning to give your loved ones a travel spree or any extravagant gift for the upcoming holiday, consider taking out a loan – taking into account your budget for the next months – so as not to spend all your cash in one go. In this way, you can celebrate the holidays as you wish without worrying about how much is left of your hard-earned savings.

Plan for a brighter future.

Get on track to acquiring your financial goals with a convenient and flexible plan. The KayaMo Saver’s Plan is designed to help Filipinos safeguard their hard-earned savings and secure a better future.

  • Flexible payment terms of 3, 5, or 7 years
  • 3% earnings per annum
  • FREE 1-year Accidental Life Insurancecoverage worth Php 100,000
LEARN MORE
Make your dreams possible.

Any dream is within reach with a multi-purpose loan that offers low interest rates.

  • Interest rates as low as 0.88%
  • Loan release within 24 hours of approval
  • Fast and hassle-free loan application
LEARN MORE

It is highly tempting to go overboard with spending during the holiday rush. However, it is way smarter to have a sense of control so you will not deal with any financial stress after the holidays. Have merry celebrations and wise decisions!

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Towards a better future: Building up savings amid COVID-19

Towards a better future: Building up savings amid COVID-19

April 29, 2021 | by HC Mutual

Our way of life has changed drastically because of the pandemic. As a nation, we have discovered and endured unprecedented challenges, risks, and uncertainties. Financially, COVID-19 has also underscored the importance of planning and saving.

Beyond taking care and providing for your family during these difficult times, building up savings ensures a better future for you. Tomorrow brings new opportunities, and enough preparation can give you and your loved ones the best chance to seize them. To help you get started on your savings or achieving your financial goals during this pandemic, we’ve prepared a few tips for you.

1

Track your expenses 
and your income.

The first step to saving is reviewing, understanding, and evaluating your current cash flow and financial capacity. Ask yourself: Where is your money going? What are you spending on the most? How much are you earning at present? Are you receiving any financial assistance?

2

Set goals. Work through them one at a time.

Building up savings during this pandemic is a long game. Start by listing down short-term and long-term financial goals that you can slowly work through, one by one, within a set timeline—no need to rush. For a more detailed know-how on setting goals and putting them into action, check out our guide to creating doable financial plans here.

3

Utilise payment 
holidays.

Give yourself breathing space and ease the financial stress of the pandemic by seeking assistance where possible. Many financial institutions like HC Mutual provide payment holidays for loans and other financial services in case of emergencies. Check your utilities, mortgage, or active loans if it is possible to work out an arrangement for you.

Start saving for the future today.

HC Mutual offers its members the KayaMo Saver’s Plan—a hassle-free way to build up savings and put your financial goals within reach.

  • As low as P101 per payday
  • Flexible savings plans of 3, 5, or 7 years
  • Access to the KayaMo Cash Loan – This way, you can have the means to address your immediate financial needs without dipping into your savings.
LEARN MORE

4

Prioritise the 
essentials.

Online shops and cashless transactions have made it easier to spend money. While it is good to treat yourself once in a while, keep your shopping to a minimum and focus on securing essentials first.

5

Reallocate 
your funds

With the nationwide push to stay at home for safety, online classes, and—for some
individuals—the work-from-home setup, a portion of your budget can be added to your savings and emergency funds.

Final Thoughts

Despite the fear and struggles caused by COVID-19, all hope is not lost. You can still look forward to a better tomorrow and ensure that your loved ones can have a future with careful planning, good saving habits, and financial safety nets.

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Pay yourself first: 8 QUICK-AND-PAINLESS MONEY SAVING TIPS

Pay yourself first:
8 QUICK-AND-PAINLESS MONEY SAVING TIPS

October 15, 2020 | by HC Mutual

You don’t have to see the whole staircase, just take the first step.

– Martin Luther King, Jr.

We all have goals and dreams for the future. It may be the latest new gadget, getting another degree, travelling, starting a business, or owning a house. Whatever it may be, more often than not, it requires money. But if you’re the average earning adult, the numbers may seem impossible next to your list of expenses. As a result, we may prematurely park these goals for “when we’re ready” or sigh them off as daydreams.

It matters that you want to start working towards your goals—so here are some tips to push you forward and help you save in a smart, doable, and efficient way!

1. Track your spending

The first step to finding out how you can save is knowing how you spend. Whether it’s a monthly bill, an online purchase, or even a tip to your delivery guy, record it. Do this religiously for at least a month. Understanding your expenses in detail is the key to controlling it.

Once you have the data, organize it by categories (e.g. utilities, groceries, subscriptions, etc). Check your bills and statements to make sure your records are accurate. Thankfully, there are now spending tracker apps that can help you do this seemingly cumbersome task.

2. Make savings part of your budget

In the words of Warren Buffet: Spend what is left after saving. Once you have an idea of how much you spend monthly, allocate your monthly income and add savings as a budget category. Make it a goal to put 10-15% of your income under it.

3. Look for where you can cut down

If your expenses are too high and you can’t reach your monthly savings goal, it’s time to look at areas where you can cut back. Start with identifying nonessentials: Internet, telco, or cable too high? Time to look at downgrade options. Do you need both Youtube and Spotify? Perhaps you can order less and cook more?

SAVING TIP

When you feel like buying something nonessential, give yourself time to cool down. Wait a few days and see if you can live without it or if you are ready to save up for it.

4. Set a savings target

One proven motivation technique is to know exactly what you want to get in the end. It should be something concrete so you always know how well you’re doing. For instance, if you want a car, find out how much money you’ll need to buy one. Armed with your budget, you can now figure out how much you’ll have to save monthly, how long it will take you, and if you want to adjust your spending to get there earlier.

SAVING TIP

Your goal doesn’t always have to be big. It can be a small, short-term goal like a new bike or phone. Succeeding will give you a feeling of reward and accomplishment, and makes you more confident to set bigger and bigger goals.

5. Prioritize your goals

Don’t forget your long-term goals, and make sure you’re not putting off important things (like retirement) for shorter term needs and wants. Allocate your savings so it is balanced between immediate rewards and long-term security.

6. Use the right tools for saving

Consider a mix of options for your short-term and long-term goals. For short-term, you can use your savings account or open a time deposit. For longer term goals, consider retirement insurance or securities such as stocks or mutual funds. There are banks that offer investment accounts with higher interest rates. There are life insurance plans where you’re insured for a set period and get a lump sum when it matures. There are also financial institutions like HC Mutual which offer a combination of these features.

As you do your research, take note of details like balance minimums, fees, and interest rates to find the best mix and fit for you.

SAVINGS TIP: For those who want to save for longer-term goals but have smaller starting income, HC Mutual offers the KayaMo Saver’s Plan:

  • Choose a savings plan that fits your needs and goals within fixed terms of 3, 5, or 7 years
  • Depending on your plan, you can earn bigger premiums by the time your savings mature
  • Auto-debit arrangements or automatic payroll deduction schemes are available to make saving easier and more regular
LEARN MORE

7. Automate your saving

Setting up automated savings reduces the chances of spending that money instead of saving it. For example, if you’re using a bank, you can open a separate (sacred) savings account and set up automatic monthly transfers from your payroll account. HC Mutual deducts your savings directly from your payroll to make saving easier for you.

8. Check your progress regularly

Review your budget monthly and see how your savings grow! Not only will it motivate you, it will also help you identify and fix any problems that may come up. Who knows, it may even inspire you to find more ways to reach your goals faster.

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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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First Home Home Loan Home Tips Saver’s Plan Savings

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The first steps to planning your budget

The first steps to planning your budget

May 29, 2020 | by HC Mutual

Many people believe that going on a budget means tightening the belt and cutting down on expenses. However, budgeting goes beyond that. It’s about allocation and planning, making sure that your hard-earned money is spent on the things that truly matter and make you happy.

If you’re new to budgeting, here are some tips that can help you begin and follow through your plans for the coming months and the long-term.

Track your spending.
Step one is to know the ins and outs of your spending habits.
For at least 30 days, take note of where you’ve been allocating
your funds. How much do you spend on groceries, utilities, rent
(if applicable), and travel expenses? You should also look at
your monthly subscriptions and plans, if any, as well as your
shopping or leisure expenses.

Know your income.
Before you begin spending, know what funds you’re working
with. How much do you earn? How many people are paying for household expenses? The more you know about your finances,
the better you can plan your budget.

Leave room for the unexpected.
Always overestimate funds for basic needs, emergencies, or unplanned expenses. Leaving a buffer in your budget is
especially helpful if you are self-employed or if your income is
inconsistent.

Set goals.
When planning your monthly budget, set small and big goals for
yourself. Whether it’s paying off your debt, decorating your
living room, or buying your first home, take the necessary steps
to make it happen. Accomplishing milestones can help inspire
you to keep going and to do better.

Include your savings in your budget.
Treat your savings as part of your utilities or monthly
obligations. Set an amount to “pay” consistently. To make
saving easier and lighter for you, we offer the KayaMo Saver’s
Plan. This disciplined financing program keeps you on-track of
your budget through a salary deduction scheme and flexible
payment terms, helping you save up for emergencies and
long-term goals.

Keep an updated record.
Whether it’s through an app, a notebook, or a spreadsheet, we
recommend documenting your finances. Keep your receipts
and use them to better track your spending. By having your
monthly income and expenses recorded, you can create a
clearer and well-grounded plan.

While it’s good to keep to your budget, remember that you have the choice to adjust it according to your priorities. Budgeting should not be a painful activity—it’s a tool to make your life easier and a stepping stone to achieving your future goals.

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Budgeting Tips HC Mutual Monthly Budget Personal Finance Saver’s Plan

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