7 Fees You Need to Know About When Buying Your Own Home

Here's the breakdown of everything you need to spend when you buy your own home.

Perhaps there is nothing more satisfying than coming home to your very own house after a hard day's work. And although there are so many benefits to renting, having a place to call your own just has a different ring to it. But how much do you actually need to be able to afford your own house?

Here are a couple of fees you may need to pay before finally calling a house your home:

Reservation Fee

One of the first things that you shell out for - a reservation fee is a way for you to show your interest when it comes to buying a certain property. The amount would depend on the real estate developer or seller.


This usually amounts to 10% to 20% of the whole amount of your house.

Appraisal Fee

When you decide to buy a home through a home loan, the lender needs to verify that the property you are looking to buy is worth the requested loan amount, or the asking price. An independent assessor is then hired to check the value of the property. He checks the physical attributes of the home, like the square footage, building materials and any improvements throughout the home. The appraised value is then provided to the mortgage lender for review.

Handling / Processing Fee

In applying for a home loan, banks normally charge handling or processing fee. Although these are not paid upfront or upon loan application, handling fees are settled prior to release of you loan, together with other fees.

Mortgage Registration Fee

Once a bank takes in a loan, the bank will facilitate the annotation of mortgage on your title and fees are paid to the Register of Deeds. Fees vary based on location and size of property.

MRI and Fire Insurances

Insurance policies aren’t the most popular things for Filipinos to purchase, but it serves as a giant safety net to ensure that your family will have something to fall back on.

Mortgage Redemption Insurance or MRI, is much like a life insurance. It's an annual premium that you pay along with your home loan that ensures that just in case something happens to you and you're not able to pay for your home loan anymore, your family members will be able to rely on part of the MRI to pay for the home loan’s outstanding balance.

Fire Insurance on the other hand, is basically protection in case your house goes down in flames, you can still collect enough money to hopefully rebuild and start fresh. The following are covered under Fire Insurance: fires due to earthquake, earthquake shock, typhoon, flood, and bursting or overflow of water tanks, apparatus or pipes.

Monthly Amortization

Getting a home loan is a practical, efficient way of being able to purchase your home quicker than you usually would. With All-in Financing, loan-related fees such as handling fee, mortgage registration fee and insurance premiums can also be financed when you get a home loan from BDO. So check out BDO Home Loan's financing packages. An account officer can guide you through your loan application process.

If this list made you feel doubtful that you can actually afford your own home, no need to fret—a BDO Home Loan is available to help you purchase a place that you can call your own. You can apply and get your loan approval as quick as five days from submission of complete loan application documents. Plus, with BDO Home Loan's "3M FREE Raffle Promo" you can get a chance to be one of the 3 lucky winners of a full loan payment (with cap of 3M per winner)! Promo period is from July 1 to Sept. 30, 2016. CLICK HERE for more information! 


This article was created by Summit Storylabs in partnership with BDO Home Loan.