Should you prioritize a marriage or the mortgage?

When the time comes and you find yourself settling down with your significant other, a dilemma might present itself: should a house mortgage come before the wedding? Or vice versa? It’s no secret that both a wedding and buying a home come with steep price tags but which should you prioritize?

We break it down for you below.

Average cost of weddings in the Philippines

Weddings are often extravagant affairs. The cost of holding a wedding can reach up to PHP 2 million or more. If you and your partner are willing and able to invest in such an event, then go ahead and do it. However, if money is tight, a simpler wedding is a more advisable option.

According to a survey by Home Credit, couples spend between PHP 40,000 to 80,000 on engagement rings and at least PHP 30,000 on wedding gowns alone. Many couples also spend around PHP 30,000 on invitations and giveaways; other major expenses include pre-wedding photography (around PHP 10,000), pre-wedding video (around PHP 15,000), and the wedding reception (around PHP 34,000).

This is not meant to dissuade you and your partner from having the wedding of your dreams. After all, it’s a once-in-a-lifetime event that will surely hold a big place in your hearts. However, if you only have around PHP 200,000 in your savings, it would be better for you to have a more modest wedding.

If you and your partner have a limited budget for the wedding, a simple celebration is the best option. A lavish ceremony isn't worth it if you have to rack up high debts just to pay for everything that comes with it.

Average cost of a house in the Philippines

As of 2021, the price of a home in the Makati Central Business District has soared to P201,360.00 per square meter. To secure a condominium unit in the area, you would have to shell out at least PHP 6 million. A 100 square-meter home, on the other hand, costs around PHP 20 million.

If you and your partner are saving up for your own home, it might be better to postpone your wedding until you have enough money. Or if it's possible, have the wedding only after the down payment is paid in full.

Marriage vs. Mortgage: which should go first?

A home loan is ideal for couples who wish to settle down in a place they can call their own. If you're already engaged, then this might be your best bet in building a home for your new family.

It actually depends on whether you and your partner would rather spend big on your wedding, or invest in your future home instead. But ideally, you and your partner should focus on what matters in the long run, given the current pandemic. Spending a lot on a wedding and paying for your future home at the same time might lead to a more difficult situation.

So how do you choose between the two? In order to make a sound decision, there are certain factors that you must take into account.

1. Think of your family's needs first. It doesn’t make sense to spend on a lavish wedding or extravagant home if it means having to sacrifice your family’s current needs to do so.
2. What is your financial situation? How much do you have saved? Are you in debt?
3. Do you want one over the other or neither?
4. Which is more important to you?
5. What will give you happiness and satisfaction in the long run?

If you decide to pursue both, long-term planning is the key and it is recommended you focus on one before the others doing one after another. Here are some tips on how to achieve your goals without becoming too stressed out about money:

1. Track your expenses and monthly income. Keep tabs of what you spend money on so you have an idea how much more you need to save for your dream home.
2. Have at least 80% of the down payment by the time, if not on the day of your wedding. You may set up a savings account where you can deposit a portion of your salary every month so you have enough money for the down payment when the time comes to buy your house.
3. Save up for a house first before going on a honeymoon. This will be one of your most treasured moments as husband and wife, so it's definitely worth waiting for.
4. Have a wedding registry so guests can directly buy gifts for your new house.
5. Have at least 3 to 6 months of your salary as savings before getting married.
6. When shopping for stuff for your home, do not go overboard. Remember that there's no point in buying fancy furniture, appliances, and accessories if you can't afford to pay for them in cash. You might spend more than necessary so set your priorities first. If you must use your credit card, check to see if the store has a 0% installment rate program so you can defer payments without incurring any fees.

Remember, there are no right or wrong answers to this issue! Every couple has different needs and goals, so talk to your partner to find out what your ideal timeline is like. It may be a challenge to balance the two but if you work hard and make sound financial decisions, achieving this is well within your grasp.

If you’re set on a potential forever home but don’t have the funds just yet, Metrobank can help you get it faster. Visit the Metrobank website or head to the nearest Metrobank branch today to apply for a Metrobank Home Loan so you can get your dream home.