How to Lower Your Monthly Payment for Your First Condo
Minimize your monthly fee by considering these factors.
Deciding whether to buy a new condo unit initially comes with a lot of hesitation, and most of it has a lot to do with the buyer's financial situation. How confident are you that you'll be able to handle all the expenses that will come your way? How much should you be making to be able to sustain your lifestyle? What sacrifices do you need to make?
Still, there are ways to make your monthly expenses for your new home manageable. With the right strategy, you can keep your monthly costs to a manageable amount. Here are a few tips on how to pull it off:
Consider getting a condo near a central business district, but not within one.
The thought of buying a home near work sounds great since you won’t have to deal with heavy traffic on a daily basis. But because the demand for units in central business districts (CBDs) is high, the prices for these units are proportionally inflated.
Instead, get the next best thing: a condo in the proximity of a CBD. You’ll still live close enough to shave off a lot of travel time, but the cost of the property will be noticeably lower than those inside the district.
Find the best deal when it comes to getting a parking space.
Parking spaces drive up your monthly costs by a tremendous amount; they can demand prices over P1 million depending on the condominium development.
If you decide that a parking space is an absolute necessity, go ahead and get one with your condo. Just make sure you get the best value for your money. Be on the lookout for one or ask your agent for condo promos for parking spaces. Another tip is to include it in your home loan application.
Pay closing fees after the turnover.
Closing fees—such as turnover taxes, documentary costs, and the broker's commission—can pad your monthly costs if you agree to pay for them before the turnover.
Pay for them after the unit is officially yours using your housing loan and in a lump sum rather than as an add-on to your monthly dues.
Negotiate discounts on association fees.
After the turnover, you'll still have to deal with a variety of monthly costs. The most significant of these are the installments for your lump-sum payment, as well as the association dues.
While the installments can be affordable depending on where you secure your loan, not many people realize that association dues can also come with discounts. Many developers offer a lower rate if you agree to pay for a year’s equivalent of dues right off the bat.
Look for a bank that gives a fast home loan decision.
In most cases, you'll have to secure a bank loan to completely finance your purchase. Choosing the right bank will not only help keep your monthly costs to a minimum, it will also let you purchase your home ASAP.
PSBank offers a one-day credit decision on loan applications for brand-new condo units and properties from accredited developers. It also offers flexible terms over the course of 25 years, with the option for fixed interest rates so that your costs won't balloon over time. With the Prime Rebate feature, you can also save more money by getting rebates on excess payments—giving you greater control over how much you spend per month. You can also apply for a home loan online through the bank's website.
If you're in the market for a condo unit, consider getting a PSBank Home Loan to finance your new home.