BPI Family targets more housing loans

MANILA, Philippines - BPI Family Savings Bank is targeting a 20-percent growth in its residential mortgage loan portfolio this year.

BPI Family Savings senior vice president and head of retail mortgage Jocelyn Sta. Ana said that the thrift bank has been experiencing 16-percent growth rate for the past years.

“We want to grow the portfolio more aggressively,” Sta. Ana said.

In the past three years, its residential loan portfolio has cornered 24 percent of the country’s residential loan market, which in turn has been growing by an average rate of 12 percent per annum.

Sta. Ana explained that the lender’s optimistic and aggressive posture is buoyed by reports of strong demand by end-user despite a looming increase in interests rates by 25- to 50 basis points.

End-users continue to dominate the buying scene over speculators or investors, particularly in the P2.5 million and below segment of the market.

Majority of the property buyers are first-time owners, young professionals, newly-married couples, and well-to-do students from the provinces enrolled in leading universities in Metro Manila.

BPI Family Savings operates 160 branches but is part of BPI’s combined branch network of 808. “Any BPI bank client can book a mortgage loan through either a BPI or BPI Family Savings branch,” she pointed out.

Eighty percent of its 37,000 housing borrowers are located in Metro Manila, which strongly indicates that the potential for loan growth in areas outside Metro Manila (AOMM) are huge.

The bank’s default rate is a healthy three percent versus industry’s six percent.

Interest rates also remain attractive. For a one-year loan period, borrowers are charged a 5.5 percent rate.

Two to three-year period reflects a 6.25 percent rate, a five-year period with 7.5 percent; and 10-years loan period reflecting a 8.5 percent annual rate.

Monthly amortization is the standard practice for payments, while loans over between 15 to 20 years are negotiable.

Mortgage loans accounts for over half of BPI Family Savings loan portfolio with auto loans account for 28 percent of the total while small and medium enterprise (SME) loans for 22 percent.