8 Ways to Save a Down Payment for a Home in the Philippines

8 Ways to Save a Down Payment for a Home in the Philippines

For most of us, buying a house is the biggest purchase we can make. Aside from it being a big personal change in one’s life, it is also a financial challenge that should be well thought out. 

Therefore, instead of being intimidated, there is a number of ways to financially prepare in taking this step. Even though purchasing a residential property comes with plenty of financial aids offered by banks, Pag-IBIG’s housing fund, and even real estate developers, practicing these lifestyle changes below will help you prepare in paying that downpayment for your dream home without hassle!

Determine how much you need.

The foundation of any financial savings story is good planning. if you have a clear idea of how much you have to save, it will be easier for you to determined what actions you will take to get to this goal. If you’re just starting out on your home-buying adventure, determining how much house you can afford is a fantastic place to start. When you take everything into account, you’ll be able to obtain a good idea of what your down payment may be.

Create a separate account for a downpayment. 

If you’re looking to begin saving for a down payment on a new house, you can do it in a separate saving account from the rest of your income. Some folks even go a step farther and do not connect it with their other bank accounts. This makes withdrawal much harder and avoids them from touching the allotted money. This makes things simpler to keep track of money and decreases the urge to spend it.

Reduce excessive spending.

This is the basis of any savings you want to start. Make a conscious effort of avoiding unnecessary expenses that you can eliminate in your daily life. This will give you more ability to have the means to save for a downpayment. 

There might be situations in your life that you can change for less financial expenses. For example, instead of buying lunch at your work or school cafeteria, try packing your lunch. These changes might seem too small at first but doing it for a long will have a great outcome for your savings. 

Separate a tenth of your monthly salary as savings.

Saving 10% of your monthly net income will go a long way, and you should get started as early as possible.

Display visible reminders of this financial goal.

Saving money is difficult, therefore it is critical not to lose track of your final objective. Make sure to keep visible reminders up so you’re always aware of what you’re saving cash towards. Simply put the image of your dream house as the background photo on your laptop or phone to do this.

You can make notes on the date of your first down payment if you have a physical board or calendar hanging in your workplace or room. These minor details will serve to remember and inspire you in your efforts to save money successfully.

Involve household members in the budgeting process.

Because buying a dream home is better as a group effort, keeping to a plan that is completely supported by everyone in the household is the key to attaining your target savings. Everyone involved in this adventure who can contribute monetarily should make an effort to save as well.

Consider selling luxuries you don’t use.

For anyone whose a fan of buying luxuries, there might be things you are ready to give up for your dream house. Consider selling the pricy things you don’t use anymore for a faster way to earn extra income. Selling these online may earn you thousands of pesos in a short span of time.

Pay off your credit card debt as soon as possible.

Even though this is not a traditional savings technique, it will save you money on interest payments in the long run. Before you agree to a mortgage for millions of pesos, it is absolutely essential to straighten out your finances first.


Being able to be closer to your dream of owning your ideal house is indeed one of the most rewarding things you can do for yourself, but this also calls for a conscious effort to make smart decisions. Overall, it is not hard to save and prepare yourself for such a big purchase, just discipline, and smart financial decisions and start as early as you can. Don’t forget to enjoy every moment that leads you up to the day that you can call that place your home.

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