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This calculator estimates how much property you may realistically afford based on your monthly income, existing debt obligations, loan term, and estimated interest rates in the Philippines.
It is designed for Filipinos planning to purchase property who want a clearer view of their possible monthly mortgage payments before talking to a bank.
Home affordability is commonly estimated using debt-to-income (DTI) ratios. Most Philippine banks prefer total monthly loan obligations to remain within 30–40% of gross monthly household income.
This tool estimates three budget tiers:
A higher estimate does not always mean the property is comfortably affordable. Before committing, also consider:
A conservative monthly payment is generally safer than borrowing at the maximum approved amount.
Most banks in the Philippines require:
Freelancers and self-employed applicants may also need additional income documentation such as 2 years of ITR and audited financial statements.
Scenario 1: A household earning ₱60,000 per month with ₱5,000 in existing monthly debt, a 7% annual interest rate, and a 20-year loan term may qualify for a property priced between ₱2.2M and ₱2.8M depending on the lender and their risk tier.
Scenario 2: A household earning ₱90,000 per month with no existing debt, a 6.5% interest rate, and a 25-year loan term may qualify for a property priced between ₱3.8M and ₱4.8M. Choosing the safe tier keeps monthly payments around ₱25,000, which leaves meaningful budget headroom for maintenance, insurance, and savings.
At a 7% annual interest rate over 20 years with a 20% downpayment, the monthly payment on a ₱2.4M loan (after downpayment) is roughly ₱18,600. To keep this within the safe 28% DTI threshold, you would need a monthly income of at least ₱66,000. A larger down payment or longer term reduces the required income.
Most Philippine banks and Pag-IBIG require a minimum downpayment of 10% to 20% of the property value. Some developer-financed schemes offer lower downpayment options, but these often come with higher in-house interest rates. A 20% downpayment is generally considered the standard for bank financing and reduces your monthly payment significantly.
A DTI of 28% or below is generally considered safe and comfortable for most households. The 30% DTI is the standard benchmark used by many Philippine banks. Going beyond 35–40% puts financial stress on the borrower and is not recommended unless there is strong income stability and minimal fixed expenses.
Yes, but the documentation requirements are more extensive. Most banks require 2–3 years of ITR (BIR Form 1701), audited financial statements, and proof of consistent income. Some banks may also require a larger downpayment. Pag-IBIG housing loans are also available to self-employed members with regular contributions.
A longer loan term reduces your monthly payment but significantly increases the total interest you pay over time. For example, a ₱2M loan at 7% over 15 years costs about ₱17,980/month but ₱14,940/month over 25 years. However, you pay an estimated ₱460,000 more in total interest with the 25-year term. Choose the term that fits your monthly budget while minimizing total cost where possible.