Letters To The Editor: On interest rates of socialized housing loans

Dear Editor,

This refers to The Freeman news article re: the reduction of the interest rate of Cebu city’s socialized housing loans.

We highly commend the Cebu City Council for passing this ordinance last August 27, 2012 reducing the interest rates of all  Cebu City socialized  housing program beneficiaries from 9 percent to 6 percent per annum.

The ordinance sponsored by City Councilor Alvin Dizon aims to harmonize the interest rate under the city government’s socialized housing program with that of the interest rate of the national housing agencies.  

It is notable that the Cebu City Council has passed several ordinances which have restructured and condoned the accounts and penalties of the socialized housing beneficiaries  in order to make it easier and more affordable for them to pay their housing amortizations.

With the passage of this ordinance, the city’s socialized housing program will now be in line with the national government’s thrust of making socialized housing more affordable to qualified beneficiaries.

The national government through Home Development and Mutual Fund (Pag-ibig) Circular No. 247 has set the interest rate of six percent (6%) for socialized housing packages (up to P400,000) starting in 2009.  

Again, our hat’s off to Councilor Dizon for promoting the security of land tenure of our city’s informal settlers.

Sincerely,

 (Sgd) Mr. Ronilo Montejo

President, Urbanville Homeowners’ Association

Barangay Pit-os Cebu City