By Iris C. Gonzales Updated January 31, 2009 12:00 AM
[ philstar.com ]
The Government Service Insurance System (GSIS) has sold P313.91 million worth of low cost housing units last year through a program that provides low amortization to borrowers.
GSIS president and general manager Winston Garcia said that GSIS was able to sell more than 344 house and lot units last year under the program.
Under the scheme, installment buyers are entitled to a maximum repayment term of 30 years.
Garcia said the program offers the most attractive interest rates in the market which are better than most banks.
Majority of the housing units under the program are livable and located in subdivisions with complete amenities and with existing communities in over 70 locations, including key cities in Metro Manila, Bulacan, Rizal, Leyte, Western Samar, and South Cotabato.
Furthermore, GSIS’ housing program also has several payment options for buyers. Options include over-the-counter payments, post-dated checks, and salary deductions for members.
A three-month grace period is also given before payment of the first monthly amortization.
Unlike banks which have imposed stricter requirements, the GSIS has also waived the application fee for interested parties and demands minimal documentary requirements.
Any individual or corporate entity who has the legal capacity to acquire real property in the Philippines may acquire these foreclosed properties either in cash or installment basis. As such, cash buyers are entitled to a 10-percent discount on the selling price of the property.
GSIS said that to qualify for a housing loan under the program, the individual buyer must not be more than 65 years old at the time of filing of the Offer to Buy; has no delinquent loan account with the agency; and not an employee of the GSIS directly involved in the disposition of acquired assets.
On the other hand, institutional buyers must be a domestic corporation, provident fund, association, local government unit, and must be allowed by its by-laws to purchase a real property in the Philippines.
Institutional buyers must also have a specific authority to acquire real properties from the GSIS.
The maximum loanable amount shall be the selling price of the property less the P5,000 reservation fee and five percent down payment.