08/20/2009 [ tribune.net.ph ]
Demands for mass housing and midrange housing units by members of the Government Service Insurance System (GSIS) are expected to reach all-time high proportions once again as the pension fund lays out its best offer yet for its new Housing Loan Program.
In a statement, GSIS said its members who avail themselves of the new housing program can enjoy a basement low interest rate per annum of only eight percent compounded annually. This rate is fixed for the entire term of the loan. Repayment is allowed from a minimum of five years to 30 years. This interest rate applies to any approved loan amount.
GSIS President and General Manager Winston F. Garcia said banks or other financial institutions might offer the same or lower interest rate, but only the GSIS offers it at a fixed term and totally independent on the value of the approved loan amount.
"Right now, the GSIS has the best housing loan program in the country. You can’t find a program that provides more security to the borrowers anywhere else in the market," he said. "We practically gift-wrapped this program to our members so they can afford to buy a house of their own."
The program covers the purchase of a vacant lot, a house and lot, a condominium or a townhouse which is intended for residential use and is covered by a Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
The following GSIS active members are eligible to apply: permanent and regular government employee; temporary, contractual, or casual employee who is in active status with at least three years of continuous service immediately preceding the filing of application; and elected official and co-terminus employee who are in active status with at least one year of continuous service immediately preceding the filing of application.
To qualify, the applicant’s agency must not be suspended due to non-remittance of the mandatory social insurance contributions and any loan amortization. This shall be a continuing requirement until the release of the loan proceeds.
A member can only avail of one loan under this Program.
The repayment of loan shall be in five, 10, 15, 20, 25 or 30 years but should not exceed the difference between 80 and age of borrower at the time of application.
The loan shall be paid either through payroll deduction, post-dated checks or direct payment.
The maximum loan amount that can be granted to a member shall be the lowest of the following: 90 percent of the appraised value of the property; the selling price; the maximum loan amount computed based on the paying capacity; and the amount applied for.
In case the paying capacity of the principal borrower is not sufficient to cover the monthly amortization of the loan applied for, one co-borrower may be allowed provided the co-borrower is a GSIS member who has the same qualifications as the principal borrower and is related to the borrower within the 1st degree of consanguinity or affinity; or a non-GSIS member who is the legal spouse of the principal borrower or is a relative up to the first degree of consanguinity, with most recent Individual Tax Returns for three years prior to the loan application.