Planning on house-shopping with your spouse this year?
The house hunting process can be challenging for remote working couples. On top of an ideal location and a safe neighborhood, you also need a house that’s conducive to an online work from home setup.
This means stable internet, ample sound insulation, and enough space for your equipment.
Then, there are also home loan requirements, property taxes and other fees, and coming up with enough savings for a down payment.
All these can seem daunting, especially if it’s your first time making such a major purchase.
Hence, here’s a comprehensive home-buying guide for remote couples to help make things a bit easier:
Step 1: Evaluate Your Work-From-Home Lifestyle and Space Requirements
Let’s begin our home-buying guide by assessing the type of home remote couples like you need.
Today, many homebuyers want larger houses with extra space for separate home offices. However, this isn’t always possible.
If you’re both working in one room, have at least 3-4 feet of desk width and sufficient room for a chair to move comfortably. You can use a slim divider like a desktop partition or a low bookshelf to help delineate personal zones.
Prioritize Layout Features Like Natural Light and Sound Separation
According to experts, working in an area with natural sunlight reduces stress, improves creativity, and boosts your sleep cycle.
Thus, look for properties with east or south-facing windows and a high window-to-wall ratio for consistent morning and midday sun, reducing the need for artificial light.
Another common concern for remote workers is soundproofing their workstations for video calls.
You can do so by positioning your remote workstation away from busy family spaces like the kitchen or living room to minimize background noise.
You can further improve acoustic isolation by hanging foam or fabric-wrapped panels on the walls, placing thick rugs, or installing bookshelf partitions to block echoes.
Plan for Future Growth
Purchasing a house is a significant long-term investment; therefore, anticipate any changes in your household by selecting homes with flexible spaces.
These could be extra rooms in case you and your spouse decide to raise children or regularly host guests, or extra space to run a side hustle like baking, crafts, or e-commerce.
If you’re planning on doing the latter, factor in additional electrical capacity, plumbing access, or a garage space for shipping.
Step 2: Build a Remote-Friendly Financial Plan
Once you and your spouse have an idea of what kind of house to get, the next home-buying step is generating the necessary budget for it.
When creating your budget, always take into consideration your combined incomes, savings, monthly expenses, and any existing debts. This helps you avoid overextending yourselves financially and streamlining your loan application.
That said, this can be tricky if either of you has fluctuating incomes (i.e., one of you is working as a freelancer).
It helps to calculate your budget based on your lowest monthly earnings over the last 6-12 months, so you can still meet closing costs like mortgage or amortization.
Another useful home-buying budgeting tip is the 50/30/20 budgeting rule. This means allocating 50% of your income for your basic needs, 30% for wants, and 20% for savings.
Save Big With Tools, Apps, and First-Time Buyer Programs
Thanks to modern technology, saving up for your and your spouse’s dream house is now a lot easier.
Digital banks like Maya offer tiered interest rates, where you can earn up to 15% p.a. (Per Annum) on your first PHP 100,000 deposit by completing everyday transactions.
There’s also GSave, a collaboration between GCash and CIMB Bank, providing a 2.6% p.a. interest rate paid out monthly, with zero initial deposit and no maintaining balance requirement.
Besides these, there’s Pag-IBIG’s MP2 program, which allows members to earn tax-free dividends, with the 2024 rate at 7.1% p.a., one of the highest low-risk yields in the market.
Looking for affordable home loans? If so, you’re advised to take advantage of the various first-time home buyer programs offered by banks and Pag-IBIG.
These offer lower down payment requirements, extended tenors, competitive interest rates, and mechanisms to accommodate non-traditional incomes.
Get Approved Even With Non-Traditional Income Sources
Worried that your mortgage application won’t be approved because you’re working remotely?
Worry not, as Pag-IBIG accepts various proofs of income, including Income Tax Returns (ITRs), 12 months of bank statements, audited financial statements, and commission vouchers.
For a more detailed guide on how to apply for a housing loan in Pag-IBIG, click here.
Many major banks also accept alternative proofs of income for self-employed workers and freelancers. Simply submit them alongside your other home loan requirements during your application.
To further improve your chances of passing your mortgage pre-approval process, aim for a debt-to-income (DTI) ratio that’s less than or equal to 30%.
Step 3: Explore Alternatives If You’re Not Financially Ready
A common alternative for couples who can’t afford to buy their own house just yet is to rent a house or apartment for the time being.
Renting requires significantly smaller upfront costs, and monthly rental payments are often lower than mortgage costs. In turn, timely rental payments can also be used to build your credit score when applying for mortgages.
That said, one major downside of deciding to rent vs. buying a house is that you’re spending money on a property that won’t be yours. Or can you?
Nowadays, there are many rent-to-own properties where part of your monthly rent goes towards purchasing the property.
Additionally, you can also explore a shared-ownership setup, where you purchase a percentage of a property and pay rent on the rest.
These models reduce your initial cash outlay and allow you to slowly build equity and credit history.
Step 4: Choose the Right Location for a Healthy Work-Life Balance
Next up in our checklist for buying a house is looking for the best place to settle down.
While it may seem nice to buy a house in urban areas, the high property prices and costs of living could give you pause.
Fortunately, working remotely gives you the freedom to choose a home based on your lifestyle and comfort rather than proximity to your workplace.
Thus, many remote couples are moving to suburban areas, which offer a more tranquil environment, lower costs, yet offer dependable and high-speed internet connections.
Top destinations include Cebu City, Davao City, and La Union. For more information on alternate locations, click here.
Using Online Tools for Virtual Tours and Property Research
A crucial home-buying rule is researching and touring the property before making any decisions.
That said, scheduling a house tour can be challenging, particularly if the property is in a different province.
Fortunately, sites like CebuGrandRealty offer interactive video tours, floor-plan overlays, and neighborhood snapshots, so you can remotely assess the property.
In addition, most major listing sites today allow you to filter properties by fiber connectivity, nearby coworking spaces, and even walkability scores.
Work With Agents Who Understand the Needs of Remote Workers
Having the guidance of a real estate agent who understands remote workers’ needs significantly increases your chances of finding a home suited for your lifestyle.
These agents offer full virtual walkthroughs of the property and coordinate online to accommodate your flexible schedule and minimize the need for your physical presence.
They also know which neighborhoods offer stable internet connections and which properties have backup power sources.
Step 5: Identifying Essential Home Features for Remote Couples
The next part of our home-buying guide for remote couples is ensuring our new home possesses the necessary features to support online work.
When touring a prospective house, take note of the number and location of the charging ports, cable management systems, and pre-wired Ethernet ports.
Doing so helps you determine where to set up your and your spouse’s workstations and minimize the need for unsightly and potentially hazardous cables.
Another concern for many Filipinos is sudden power interruptions; therefore, consider backup power amenities like generators or Uninterruptible Power Supply (UPS) systems.
Finally, your new home should be located near groceries and pharmacies for easy access to essentials.
Step 6: Understand the Legal and Loan Logistics
Unless you can fully pay for the property upfront, you’ll need to take out a mortgage or home loan.
Thus, this part of our home-buying guide for remote couples focuses on this and explaining the closing costs to prepare for.
Typically, remote workers can go to Pag-IBIG for a mortgage or through their banks for a home loan.
When applying for a loan, you’ll need to submit the following documents:
- Valid IDs and Application Forms:
- At least 2 government IDs and your completed housing loan form (i.e, Pag-IBIG’s HLA HQP-HLF-068)
- Income Tax Returns:
- For Self-Employed or Freelancers: Your latest Income Tax Return (Form 1701), 2 years of audited financial statements, and DTI/SEC registration or Mayor’s permit.
- For Full-Time Employed Remote Workers: Your BIR Form 2316 and three months of payslips or a Certificate of Employment (COE).
- Bank Statements:
- 6-12 months of verified statements to validate cash flow, including platform statements or remittances.
- Credit Report:
- A current Credit Information Corporation (CIC) report can demonstrate your creditworthiness.
- Some banks automatically procure this when underwriting.
- Supplemental Proofs:
- Think commission vouchers, platform-generated certificates from Freelancing sites, and lease contracts.
Factor in Insurance, Taxes, and Closing Costs
Beyond your loan principal and initial down payment, you’ll also need a budget for approximately 3-6% of the property price in closing fees. These include:
- Documentary Stamp Tax (DST):
- Amounts to 1.5% of the fair market value, the property’s selling price, or the zonal value of the property being sold, whichever is higher.
- One-time fee paid via the Bureau of Internal Revenue (BIR).
- Local Transfer Tax:
- Paid to the local government where the property is located, this can range between 0.5% of the property value for provincial properties and 0.75% for those within Metro Manila.
- Title Registration Fee:
- Paid to the local Registry of Deeds where the property is located, it amounts to approximately 1% of the property’s gross selling price.
- Notarial Fees:
- Refers to the negotiable cost you have to pay to have the Deed of Absolute Sale notarized, usually hovers around 1-2% of the property value.
- Appraisal and Processing Fees:
- Costs approximately PHP 3,000 – PHP 5,000 per valuation, plus loan origination fees of 0.5-1% of the loan amount.
- Mortgage Redemption Insurance:
- Fire, earthquake, and mortgage redemption coverage can run 0.15%-0.25% of the loan balance annually.
Step 7: Moving to Your New Home
The last step in our home-buying guide for remote couples is ensuring a successful move.
This entails creating a moving schedule around your off hours or weekends to avoid missing deadlines or calls.
Next, notify your boss and team at least two weeks in advance about your moving dates and any anticipated “blackout” periods.
In addition, book professional movers early and confirm a small “work from home” window, during which no large furniture is moved to avoid background noise or other such disturbances.
Finally, pack all your non-essential items ahead of time to avoid a last-minute scrambles.
Set Up Internet and Workplaces Before Unpacking Anything Else
Your first order of business upon arrival is setting up a stable internet connection.
Thus, schedule your ISP technician to arrive on your move-in day or the day after, to avoid work disruptions. In case this takes longer than expected, have a back-up connection ready.
Before unpacking anything else, set up your new home office so you can give it a test run and troubleshoot as needed.
Update All Online Work Tools and Client Contact Info
If you haven’t done so already, message your company’s HR and update them of your current address.
In addition, run a test meeting to check your computer’s audio-video quality and internet stability so you can quickly troubleshoot any issues.
FAQs – Everything You’ve Been Wondering About
Here are some of the most common questions remote couples ask when consulting homeownership guides:
What is the 3-30-10 Rule for Buying a House
The 3-30-10 home buying rule states that the price of the house you’re planning to buy must be limited to three times your income, require thirty percent of the purchase price saved (20% downpayment and 10% cash reserve), and cap your monthly mortgage below 10% of your monthly income.
Following this rule prevents overstretching your finances, builds healthy equity, and creates a cash buffer for unexpected expenses.
Can We Get Approved for a Mortgage if We Both Work Remotely?
Definitely.
You’ll need to provide a remote work letter from your employer, alongside your ITRs and recent payslips, as proof of financial stability.
Furthermore, having a debt-to-income ratio below 30% and 3-6 months of living expenses saved up in reserve helps strengthen your mortgage application.
What Happens If Only One of Us Has Good Credit? Can We Still Buy a Property Together?
Lenders assess joint mortgage applications by looking at both your credit profiles and base your interest rate and approval risk on the lower credit score.
Thus, having a poor credit score raises your interest rates and can even jeopardize your loan approval.
Fortunately, if the higher-credit spouse has sufficient income to meet the debt-to-income (DTI) requirements, they can apply alone and simply add the other spouse to the property title to preserve ownership rights.
Alternatively, you can also put down a larger (25-30% rather than the usual 10-20%) down payment to improve your mortgage terms.
Turning Remote Living Into Remote Thriving
Purchasing a house, particularly your first one, is one of the most significant financial decisions you’ll make as a couple.
However, since you’re both working remotely, finding a house that supports your careers and lifestyles is paramount.
Fortunately, by following this home-buying guide, remote couples will have an easier time making smarter decisions.
Looking for higher-paying internet-based careers to help pay your mortgages/home loans?
If so, Remote Staff is here to help. Our jobs list contains plenty of positions to choose from, ranging from virtual assistant jobs and online transcription jobs to online writing and design jobs.
So, what are you waiting for? Sign up here. Good luck!
