According to GSIS president and general manager Winston Garcia, the "Bahay Ko" program will help jumpstart the construction of 60,000 housing units in a span of three to four years.
"Instead of investing in high-risk securities like stocks and loans to big corporations, we have focused on lending to our members. Since it launch last year, the program has evolved into something that potential homebuyers could not resist," Garcia said.
"The allotted funding for the housing loan program is just an estimate. Our commitment is actually unlimited. As long as there are members needing housing loans, we shall always fund the same," he adds.
Based on recent studies, a mass housing project has a multiplier effect of 11 percent to the economy and some 14 percent to 21 percent related industries.
The program is envisioned to provide much needed boost, whether directly or indirectly, to the cement and steel manufacturing industry, garden and landscaping business and even to small interior designers and curtain makers.
"Bahay Ko" program boasts of having the "lowest fixed" interest rate in the country being a direct loan to members and can be availed from any GSIS branch or unit around the country. Effective May 2002, GSIS has reduced interest rates to eight percent for socialized packages covering loans worth P180,000 and below. For loans above P180,000 but not exceeding P300,000, the effective lending rate is 10 percent, and 12 percent for loans exceeding P300,000.
"These rates aside from being the lowest, are compounded annually, and are fixed throughout the term of the loan. Thus, assuring our borrowers of a non-repriceable rate until the last amotization is paid," Garcia explained.
Unlike housing loans for banks or any financial institution for that matter, the GSIS loan program is not lot or house specific and does not provide loan ceilings since the loanable amount depends on the paying capacity of the member borrower.
GSIS also offers members, free of charge, the option to avail of the agency’s 12 house designs.
The program is also open to all casual and contractual employees and elective officials if found to be eligible to avail of the program.
Likewise, potential borrowers need not worry about additional cost since the processing, appraisal and inspection fee has already been waived while mortgage redemption insurance coverage was made optional.
"Since ‘Bahay Ko’ is very dynamic, we want to give borrowers a set of schemes to choose from. They avail of the home construction scheme, home improvement/home refinancing and the most flexible of all which is the home combo loan," said Garcia.