The GSIS has lowered to six per year its interest rates for its housing loan portfolio – a move that effectively sets a new yardstick for real estate loans.
The generous offer comes in the form of two new programs – the “Sais Ang Interest Sa lahat” (SAIS) and the “Garantisadong Mababang Amortization na House en Lot Sa’yo” (GMA-HeLPS).
SAIS is a new housing loan rate reduction and restructuring program that the GSIS offers to all its existing home loan borrowers.
Unlike previous rate reduction programs, where members were required to apply to avail of the low rates, SAIS provides for an automatic reduction of interest rates.
PGM Winston F. Garcia said starting this month, the GSIS will send out letters to its housing loan borrowers informing them of their lower amortization as a result of the reduced interest rates.
PGM Garcia also said that no other financial institution, private or otherwise, has reduced interest rates to six percent on all housing loan accounts.
Borrowers whose accounts are in arrears also benefit from a feature of SAIS, which automatically condones penalties and surcharges.
The same interest rate applies to the GMA-HeLPS program, an asset disposition scheme involving more than 10,000 cancelled or foreclosed housing units.
The GSIS also went beyond normal practice when it allowed GSIS members and non-members to acquire foreclosed house and lot units under the GMA-HeLPS program.
PGM Garcia said the rate reduction is GSIS’ response to the Labor Day directive of President Gloria Macapagal-Arroyo to lower interest rates for its housing programs.
The GSIS chief said the new programs would not only encourage GSIS members invest in real estate but also compel banks and other financial institutions to come up with similarly generous housing loan programs.
“No other financial institution, private or otherwise, has reduced interest rates to six percent on all housing loan accounts. We hope others would follow suit so that in the end, our move to lower our rates would benefit the entire public,” he said.
