The maximum loan and property price your income can support.
Maximum property price
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Maximum loan
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Affordable monthly payment
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Why banks size your loan from your income, not the price you want
When you apply for a housing loan in the Philippines, the bank does not start with the condo or the house-and-lot you have your eye on. It starts with your payslip. The question a credit officer asks is simple: how big a monthly amortization can this borrower carry without falling behind? Almost every lender answers that with a debt-burden ratio, a ceiling on how much of your gross monthly income can go to loan repayments. This tool uses a ratio of 30 percent, which is a common starting point, then deducts your existing monthly debts before turning what is left into a maximum loan and a target property price.
The logic runs in one direction. Your income sets the affordable payment, the payment plus the interest rate and term set the loan, and the loan plus your down payment set the price you can shop for. That is the reverse of how most buyers think, and it is the single most useful reframe this calculator offers. If the number it returns is well below the property you were planning to buy, the gap has to be closed by a larger down payment, a longer term, a lower rate, or a cheaper home, not by hoping the bank stretches.
From a PHP 80,000 salary to the property you can shop for
Take the default figures: a gross monthly income of PHP 80,000, existing debts of PHP 8,000 a month, a 7 percent interest rate, a 20-year term, and a 20 percent down payment. The steps below use the rates this calculator applies. The debt-burden ceiling is 30 percent of PHP 80,000, which is PHP 24,000, and after subtracting the PHP 8,000 you already owe each month, the affordable housing payment is PHP 16,000.
That PHP 16,000 is then run backwards through the standard amortization formula at 7 percent over 240 months to find the loan it can service, and the loan is grossed up by the down payment to reach the price.
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So a PHP 80,000 earner with PHP 8,000 of existing payments can realistically target a home priced near PHP 2.58 million on these assumptions. The bar chart in the results panel shows how the numbers stack: a modest affordable payment supports a much larger loan, which the down payment lifts to the final price.
Where lenders diverge, and the costs this tool leaves out
Treat the 30 percent as a guide rather than a guarantee. Some banks push the debt-burden ratio to 35 or even 40 percent for borrowers with strong, stable income, which would lift the affordable payment and the price you can reach. Others are stricter, especially for self-employed applicants whose income is harder to document, and they may want two or three years of returns and bank statements before they agree on a figure. The ratio this calculator applies is a sensible middle, but the bank you actually apply to sets its own, so confirm it with the lender directly.
What the affordable payment does not cover
The PHP 16,000 here is the loan amortization alone. The true monthly outlay on a home usually includes the annual real property tax spread across the year, fire or mortgage redemption insurance that banks require, and, for a condo, association dues that can run several thousand pesos a month. A common mistake is to borrow right up to the affordability ceiling, then discover those add-ons push the real cost past what the budget can take. Leave a buffer below the maximum so the home stays comfortable when rates reset or an unexpected expense lands.
Questions borrowers ask
Does the bank count my whole salary, or just part of it?
Lenders generally work from gross monthly income before tax and contributions, which is why this tool asks for the gross figure. They may add a regular, documented bonus or a spouse's income if you apply jointly, but they tend to discount irregular commission or freelance income. If you are paid mostly in variable pay, expect the bank to use a conservative average rather than your best month.
Will a longer term let me afford a bigger home?
Yes, up to a point. Stretching from 20 to 25 or 30 years lowers each payment, so the same PHP 16,000 supports a larger loan and a higher price. The trade-off is far more interest paid over the life of the loan, and many banks cap the term so it ends before you reach a set age. Use the longer term to widen your options, not as a reason to buy at the very top of the range.
Is a Pag-IBIG loan included in this estimate?
This tool models a generic bank loan from the rate and term you enter. Pag-IBIG housing loans often carry lower rates for smaller loan amounts and use their own affordability rules tied to your monthly contributions, so the figure you qualify for there can differ. If you are weighing Pag-IBIG, run their rate through this tool for a rough read, then confirm the actual ceiling with Pag-IBIG.