Advice for OFWs: How to Save up for a Home While Helping Your Parents

Hailed for their selfless love, overseas Filipinos work hard and sacrifice a lot abroad to provide for their families back home. In generosity, they support not only their immediate families, providing a decent, comfortable life for their spouse and kids, but also their parents, helping with some of their living and healthcare expenses. The financial situation is tough, but OFWs power through to give their families the best. 

Here’s where the dilemma comes. Supporting the parents becomes hard when you take on a major, life-changing decision, such as buying a home. Since a property is a big-ticket purchase, you want to save all the money you can keep. 

Is it possible to save up for your ideal home and still help your parents? Yes. With these tips below, it’s possible.

Allocate the Right Amount for Homeownership 

The first step in saving for your new home is to know the expenses involved. The downpayment is the biggest upfront cost you’ll encounter when buying a property. This is often 10 to 20 percent of the purchase price. The closing costs, on the other hand, are pegged at 2 percent. With this information alone, you can already set a saving goal.

Say you’re eyeing a house and lot priced P3M, you must have at least P700K to settle the downpayment and closing costs. For a two-year saving period, you should allot P30K a month to build this amount. With your monthly earnings in mind, decide how much you can give your parents while still covering the new house fund or your other lifestyle expenses.

Now, if you’re still unsure how much of a house and lot you can afford, use online loan calculators. BDO Home Loan features one on their website, it shows how much you need to pay monthly for your preferred property type, price, interest rate, and loan term. By using this tool, you’ll know which properties fit your budget

Set Limits and Expectations

After deciding how much you should allocate for your new home (and assistance to your folks), talk to the parties involved. Your spouse, for instance, who will most likely do the property hunting in the Philippines on your behalf, has to know the range of property prices within your budget. If you’re eyeing mid-cost properties priced at P3M to P6M, your significant other should be able to stick to this budget. Going beyond will make saving unbearable. You may need to max out your monthly household budget, leaving little for other essentials or compromising the budget you allocated for helping your parents.

In the same way that you discuss homebuying limits with your spouse, do set limits on your contributions to parents. If you need to limit how much you can give them, be transparent when talking to them about it. With a good money talk, you can avoid missed expectations. 

Use the Big Bonuses Wisely

OFWs are no stranger to big bonuses. Some receive a huge sum during the holiday season, while others get it when they find favor from their bosses. Regardless of the kind of bonus, remember your two most important financial goals: save up for the home and help your parents. 

Rather than splurging on a grand party to celebrate the big bonus you got, put a portion of it to a livelihood opportunity for your parents and another for the new house fund. With the former providing a stable income, you probably can do away with regular contributions to your folks and focus on saving up for a home. As for the latter, you may be able to save for downpayment faster and get the keys to your new home right away.

With BDO Home Loan, owning a home will be easier and affordable for you. BDO Home Loan offers low interest rates, affordable payment options and an All-in Financing program, which covers the loan amount and related charges, such as registration fees, documentary stamp tax, and notarial and handling fee, among others. The payments are stretched out up to the term of your loan. By applying for a BDO Home Loan, you get more value for your big bonus.

It’s possible to purchase a new home while helping your parents. The key is to create a budget, consider spending and contribution limits, and tame the splurges. If you’re interested, get a BDO Home Loan now. Visit https://www.bdo.com.ph/personal/loans/home-loan/overview for more details!

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