GSIS cuts Housing Loan rates to 6%
Existing housing loan borrowers of the GSIS can now look forward to huge monthly savings after the GSIS announced a reduction of housing loan interest rates to a record low.
With the GSIS’ Sais Ang Interest Sa Lahat or SAIS, all existing housing loan borrowers now enjoy an interest rate of six percent. The rate is, by far, not only the lowest in GSIS’ history, but also in the country’s housing loan industry.
Unlike many private or government financial institutions whose housing loan programs compound every month, the GSIS’ SAIS compounds once a year.
SAIS also instantly condones penalties and surcharges on housing loan accounts.
“There’s no need for members to go to the GSIS to apply for SAIS, this program will be applied automatically on their existing housing loan accounts,” said GSIS President and General Manager Winston F. Garcia.
In fact, last May, GSIS began sending out letters to its housing loan borrowers informing them of their lower amortization as a result of the reduced interest rates.
Restructuring is also allowed to those whose loans are in arrears as of April 30, 2007.
The six percent interest rate is fixed for the duration of the repayment period of the housing loan, no matter the selling price of the property.
This puts GSIS member at a significant advantage over those who entered into a housing loan with other financial institutions, as banks’ interest rate package usually varies depending on the value of the property and covers a certain period only.
SAIS covers the following active accounts: Deed of Conditional Sale (DCS), Individual Real Estate Loan (REL), PABAHAY housing loan, and the old Bahay Ko Program (BKP). Housing loan accounts that are in arrears for more than six months are excluded in SAIS.
The program does not also include the following: fully paid accounts, cancelled DCS accounts, foreclosed and already auctioned through foreclosure or sherriff sale REL/Pabahay/BKP accounts.
SAIS also applies to the pension fund’s asset disposal program titled Garantisadong Mababang Amortization na House en Lot Para Sa ‘Yo or GMA-HeLPS.
The GSIS expects SAIS to not only encourage members to invest more in real estate, but also to compel banks to have similarly generous housing loan programs.
“With SAIS, we set a benchmark for interest rates for banks and other financial institutions to follow,” Mr. Garcia said.
“Ultimately, the entire property sector will benefit from this because overall demand will pick up as interest rates go down,” the GSIS chief added. - GSIS Kawani, May - August 2007.