If you’re planning to buy your first home in the Philippines—whether you’re working abroad or living locally,
one word you’ll keep hearing is “equity.”
But what does it really mean?
Equity 101: Think of It as Your Share in the Property
In real estate, equity refers to the portion of the property’s value that you own outright.
It’s the amount you’ve already paid or invested into the home, compared to what you still owe.
For example:
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If the total price of the condo is ₱2,000,000
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And you’ve already paid ₱200,000
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Then you already have ₱200,000 equity in your name
Where Does Equity Come From?
For first-time buyers in the Philippines, equity is usually the down payment you make to the developer or seller. Depending on the project, this can be:
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10% to 30% of the total property price
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Payable in monthly installments (ex. over 24 or 36 months)
So instead of paying one big chunk, you can stretch the equity over time while the unit is still being built. (That’s why pre-selling properties are a popular option.)
Why Equity is a Big Deal
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It’s Your First Step Toward Ownership.
You’re not just renting—you’re actually investing in something that becomes yours. -
It Affects Your Loan Approval.
The bigger your equity, the smaller your loan. Some banks and Pag-IBIG fund options require a minimum equity before financing the rest.
Common Questions from First-Time Buyers:
“Do I need to pay equity in full upfront?”
👉 Not always. Many developers allow monthly installment options.
“Can I loan the equity?”
👉 Most of the time, equity is paid before any loan kicks in, so it’s usually paid out-of-pocket—but family support or side income helps.
“What happens if I can’t finish my equity payments?”
👉 It’s important to communicate with your agent early. Some developers offer grace periods or restructuring.
Equity isn’t just a payment—it’s your seed of ownership.
Each month you pay equity, you’re not losing money… you’re building your future.
If you’re unsure how much equity you need or how to plan for it, I can help walk you through the numbers and give you a sample computation.
Get in touch with me today!
Kairos Prime Realty
+63 925 588 1136
kat.gonzaga@cebucentral.com
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