REQUIRED HOUSEHOLD INCOME

How much income do you really need to buy that property and bank finance 80% of the purchase price?

Banks quietly follow a simple rule:

Your monthly amortization shouldn’t exceed 40% of your gross household income.

So the question becomes—given a certain condo price, how big should your income be for a bank to say yes?

Here’s the Excel formula that does the math:

=PMT(7.5%/12, 180, -0.8*C2) / 0.40

What each part means:

0.8 × Price → Banks typically lend 80% of the property value

180 months → Max home loan term (15 years)

7.5%/12 → Monthly interest rate

÷ 0.40 → Because amortization must stay within 40% of household income

Plug in the numbers and the results speak for themselves.

For a Php100,000,000 condo, an 80% loan (Php80M) requires a household income of roughly Php1.854 million per month.

Numbers like these explain why the ultra-luxury segment has a very narrow buyer pool. It’s always good to understand the math behind affordability, especially with more Php100M+ units coming soon.