GSIS supports pro-poor housing programs

As we see the finish line in the campaign trail, administration and opposition stalwarts are going full blast in their effort to show the public that they have the answers to their myriad of concerns. Unfortunately for the public, some relevant issues have been left in the backburner as the discussion of our country’s future leaders have not gone past the discussion on issues concerning honesty and integrity. What this means is that the electorate, majority of whom belong to the marginalized sector, are still in the dark with regard to concerns which are relevant to them. And when you belong to the marginalized sector, you do not have the luxury of loftier things but instead are limited to the basics, which means food, shelter, and clothing.

A very welcome development, at least in the need for shelter, are two programs which were recently launched by the Government Service Insurance System (GSIS) dubbed GMA HELPS which stands for "Garantisadong Mababang Amortization na House En Lot Para Sa’yo" and the SAIS or ""Sais Ang Interest para Sa Lahat."

Over and above the catchy acronym and the political undertone of the name, the programs are a breath of fresh air to our countrymen in need of decent shelter or some relief in their amortization obligations.

GMA HELPS gives both members and non-members a chance to buy a GSIS acquired asset (cancelled or foreclosed account) at very easy terms. Interest rate is fixed at six percent regardless of the amount of loan to be obtained. The value of the properties being offered by GSIS ranges from P200,000 to P2 million. The amortization period is up to 30 years, with a very low 5% downpayment. For a half-a-million-peso property, the borrower can already move in with a low down payment of P25,000. The amortization could be as low as P3,000 per month.

This program is an expansion and improvement of the initial GSIS participation in the Housing Fair for Government Employees program launched in October last year by the Hon. Vice President and Housing and Urban Development Coordinating Council (HUDCC) Chairman Noli ‘Kabayan’ De Castro.

SAIS on the other hand, lowers the interest rate of new housing loan accounts to 6% — the lowest rate in the market. This lower rate is also applied retroactively to existing loan accounts. For a person who has been paying the standard 12% interest on his/her housing account, the decrease in the interest rate means a substantial decrease in his monthly amortization. This will result in a higher take home pay and bigger disposable income for the family which can then be used for other needs — as savings, for leisure, or investment.

These two programs are proof of GSIS’ commitment to help improve the lives of its members. These, amid questions on the propriety of recent sales of its SMC blue chip stock holdings. The GSIS addressed the request of Vice President Noli De Castro in his letter to PGM Winston Garcia to use the proceeds of the sale to benefit the housing needs of teachers.

It took a confluence of innovative management ideas from GSIS PGM Winston Garcia and proactive policy making by GSIS’ Board of Trustees headed by its Chairman Bernardino Abes to come up with these truly pro-poor housing programs. Some may see these programs as financially unwise considering that GSIS will be foregoing sure income from its existing loan contracts. On a more positive note, so long as the borrowers honor their much-lowered monthly obligations, this will be a win-win situation.

GSIS members are assured that the System’s solvency is not in any danger with the generosity of these programs. It is simply GSIS’ way of sharing the benefits of its recent financial successes.

As GSIS celebrates its 70th anniversary this month of May, these programs serve to concretize its theme "GSIS: World Class".