GSIS scraps housing loan fees

The Government Service Insurance System has scrapped the processing and other fees it was previously charging members in securing housing loans in an effort to make its housing program more affordable and convenient to avail of.

GSIS President and General Manager Winston Garcia said the GSIS housing loan portfolio - called the Bahay Ko Program - has done away with borrowers' burdens such as processing, appraisal, and inspection fees. Instead, the BKP now charges a nominal P500 application fee, which is only collected once a housing loan application is approved.

Typically, housing loan programs from private and government financial institutions charge P1,000 to P2,000 in application fee and another P1,000 to P2,000 in processing fee.

Apart from this, borrowers are required to cough out appraisal and/or inspection fees usually equivalent to .5 percent of the loan proceeds. This means that if one is getting a P1 million loan, he needs to pay in advance another P5,000.

Garcia said the GSIS finds the practice of collecting extra charges as counter productive because it discourages people from availing of housing loans.

"The GSIS is simply reiterating its seriousness in helping our people acquire their dream homes. I think such sincerity will appear contradictory if we collect expensive and often unnecessary fees," Garcia said. - Jasmin R. Uy