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#NewYearNewHome is in! Aside from New Year’s resolutions of getting fitter and healthier or changing one’s lifestyle for the better, owning or moving into a new home is one of the best achievements a person or a family can have, especially in 2025.
However, buying a new home is more challenging than buying a new OOTD. The budget for buying a house, specifically a new affordable home, is roughly thousands of pesos to Php 1.750 million (see more affordable houses for sale below Php 2.5 million). But this doesn’t mean buying a new home for you or your family is entirely impossible! Aside from manifesting this goal, why not take this Ipon for Bahay Challenge to save up at least for the down payment of the property’s overall purchase price?
The Budget to Say Yes to a Home
When investing in properties, the first question that may come to mind is, “How much money should I save before buying a house?” Reservation fees and down payment are the upfront costs you would need to pay to own a house in the Philippines before you apply for a housing loan and pay for your monthly amortization.
Let’s say that the dream property for sale you found costs around PhP 1,250,000. The reservation fee often costs around PhP 5,000 to PhP 25,000 or more, and the 20% down payment (reservation fee included) required for this property price is PhP 250,000. However, if you choose to cancel your purchase, it is usually non-refundable. But in some cases, it is transferable if you buy another property belonging to the same developer.
Regardless, buying a home is a commitment. After all, you don’t want to shell out an amount only to lose your property because you can’t pay on time. So it would be good to practice setting aside the potential monthly amortization you would have to pay based on your loan term. Going back to the price above, your loan amount after saving up for your 20% down payment is PhP 1 million.
If you plan on getting a Pag-IBIG Housing Loan, here’s a video from Accountant and Licensed Real Estate Broker Ralf Roger Tagao on the expected monthly payment and required salary. Take note that the monthly amortization computation doesn’t include insurance.
In his video, he shared this table:
| Loan Term | Factor Rate 6.375%/year
(based on Pag-IBIG terms) |
Loan Amount | Monthly Amortization | Required Salary
*If the loan amount is below PhP 1.250M, divide by .35 (35%) *If the loan amount is above PhP 1.250M, divide by .30 (30%) |
| 3 years | 0.03059 | PhP 1,000,000 | PhP 30,592.14 | PhP 87,406.11 |
| 5 years | 0.01951 | PhP 1,000,000 | PhP 19,507.65 | PhP 55,736.15 |
| 10 years | 0.01129 | PhP 1,000,000 | PhP 11,291.30 | PhP 32,260.86 |
| 15 years | 0.00864 | PhP 1,000,000 | PhP 8,642.50 | PhP 24,692.87 |
| 20 years | 0.00738 | PhP 1,000,000 | PhP 7,382.32 | PhP 21,092.35 |
| 25 years | 0.00667 | PhP 1,000,000 | PhP 6,674.17 | PhP 19,069.06 |
| 30 years | 0.00624 | PhP 1,000,000 | PhP 6,238.70 | PhP 17,824.85 |
In line with the topic of budget for buying a house, the 2024 data from Lamudi showed that NCR income households (on average earning roughly Php 35,000 monthly) should allot 24 percent of their monthly income if they want to buy a residential property in Metro Manila worth Php 1.5 million. Meanwhile, if they want to buy a Php 1 million property in CALABARZON and Central Luzon, they need to allot 20 percent of their monthly income.
For context, here is the nominal minimum wage in the Philippines based on a 2024 mini-documentary by GMA Integrated News.
| Region | Daily Wage |
| NCR | Php 610 |
| CAR | Php 430 |
| Region I | Php 435 |
| Region II | Php 435 |
| Region III | Php 500 |
| Region IV-A | Php 520 |
| Region IV-B | Php 395 |
| Region V | Php 395 |
| Region VI | Php 480 |
| Region VII | Php 468 |
| Region VIII | Php 405 |
| Region IX | Php 381 |
| Region X | Php 428 |
| Region XI | Php 462 |
| Region XII | Php 395 |
| BARMM | Php 361 |
The Ipon Plan
Going back to the example above, let’s say you earn Php 30,000 monthly. You are planning to save for the 20% down payment of Php 250,000 and practice saving for your monthly amortization for a 15-year loan term of Php 8,642.50 monthly.
That said, here are suggestions that can help you save and become a step closer to owning your dream home.
Set Aside an Amount for Your Down Payment Each Month as a Family
As a family, stick to a budget that everyone supports since everyone will benefit from having a new home. Even the kids can pinch in by saving up from their allowances and salaries. On the other hand, if you are alone in this endeavor, save a realistic amount of money from your salary. Make sure you still have enough money to support your daily needs and wants. You can also set aside your entire 13th-month pay for your savings.
Allocate an Estimated Monthly Amortization Payment and Deposit It in a Money-Market Mutual Fund
Aside from saving for the down payment, it is ideal for saving for the estimated monthly amortization, including expected property taxes, insurance, and maintenance cost. You can invest these in money-market mutual funds or savings accounts with high-interest rates. That way, you can earn better returns than traditional savings accounts.
If you prefer using a traditional savings account, make sure to open a separate one dedicated to your Ipon for Bahay fund. That way, you can readily monitor your savings and avoid the temptation of spending it for other purposes.
Look For Alternative Ways to Increase Your Income
Look for other ways to augment your income. You can sell goods, do online part-time work, or sell items in your home you don’t need or use anymore to save money for a house.
Cut on Unnecessary Debt and Expenses
The first challenge you will face in your Ipon for Bahay Challenge journey is growing debt and expenses. True, inflation is hitting hard, and everything is expensive. But you can save by canceling or downgrading other expenditures, such as subscription plans. Instead of eating out, you can also eat healthier and save more by cooking meals. You can also reduce your shopping budget by not buying new clothing items, shoes, and bags.
Increase Your Government Contributions
Suppose you plan to apply for a Pag-IBIG Housing Loan to get your dream home. Consider allocating part of your estimated amortization payment by increasing your monthly contributions to PhP 5,000. As a Pag-IBIG member, doing so will allow you to earn 5% dividends on savings and get higher loanable amounts on housing and other short-term loans.
The Ipon Challenge
If you are planning to save Php 250,000 as the downpayment for your dream home within one year and you earn around Php 30,000 a month, here’s the 2025 Ipon for Bahay Challenge you can take on. Note that the Php 30,000 a month doesn’t include your other sources of income.
Php 250,000 divided by 12 months is Php 20,833.33. For a simpler computation, let’s round up this amount to Php 20,900 and set this as your target savings each month.
| Month | Target Savings |
| January 2025 | Php 20,900 |
| February 2025 | Php 20,900 |
| March 2025 | Php 20,900 |
| April 2025 | Php 20,900 |
| May 2025 | Php 20,900 |
| June 2025 | Php 20,900 |
| July 2025 | Php 20,900 |
| August 2025 | Php 20,900 |
| September 2025 | Php 20,900 |
| October 2025 | Php 20,900 |
| November 2025 | Php 20,900 |
| December 2025 | Php 30,000 (13th-month pay) |
| Grand Total: | Php 259,900 |
From this challenge, you even save an extra Php 9,900 you can use to fund your monthly amortization!
Are you ready to own your dream home in 2025? Take on this Ipon for Bahay Challenge now! Check out available properties for sale in Lamudi that is worth buying.
Are you ready to own your dream home? Take on this Ipon for Bahay Challenge now!
For more tips on the Philippine real estate market, check out other related journals on Lamudi here.
Photos via Depositphotos
