03/03/2026
Equity vs Amortization
Equity
Equity is the amount you pay before the bank loan starts (during pre-selling or downpayment stage).
Usually:
• Paid to the developer
• Spread over months or years
• No bank interest yet (in most cases)
Example:
Property price: ₱3,000,000
Equity: 20%
₱600,000 spread over 36 months
≈ ₱16,667 per month
Purpose:
• Reserve and secure the property
• Reduce the loan amount later
Think of it as your ownership share starting to build.
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Amortization
Amortization starts after turnover or after bank financing is approved.
This is the monthly loan payment to the bank.
Includes:
• Principal
• Interest
Example:
Loan: ₱2,400,000
Bank term: 20 years
Monthly amortization ≈ ₱17k–₱20k depending on the rate.
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Simple Way to Explain It
Equity = Installment to secure the property.
Amortization = Loan payment to fully own it.
Or even simpler:
Equity → Before the keys
Amortization → After the keys
