GSIS condones P42-m in housing loan penalties thru SAIS

In keeping with the directive of President Gloria Macapagal Arroyo to make housing programs more affordable, the Government Service Insurance System (GSIS) reported that it has, so far, condoned some P41.97- million worth of penalties and surcharges from its previous housing loan programs.

The condonation is part of the one-time rate reduction and restructuring program called “Sais ang Interest sa Lahat” or SAIS.

SAIS, which was offered in 2007 to qualified borrowers under various housing programs, provides for an automatic reduction of interest rate in their housing loans to six percent from as high as 20 percent. At the same time, SAIS condones the penalties and surcharges on the housing loans of borrowers whose accounts are in arrears.

SAIS was an offshoot of the Labor Day directive of President Gloria Macapagal-Arroyo in 2007, which called for the lowering of interest rates and amortization for government housing programs.

Since the program was launched, P41.97-million in penalties and surcharges were condoned by the GSIS benefited some 30,234 home loan borrowers. Of the total, 11,573 availed of low-cost housing, while 18,661 availed of real estate loans.

Total condoned amount for low-cost housing reached P14.45 million, while the total condoned amount for the real estate loans was valued at P27.53 million.

Similarly, the GSIS launched a housing program in 2007 year dubbed as “Garantisadong Mababang Amortization na House en Lot Para Sa ‘yo,” or GMA-HeLPS, which also offers a six percent interest rate, compounded annually.

GMA HeLPS offers pre-owned housing units to both members and non-members of the GSIS.

Installment buyers will be entitled to a maximum repayment term of 30 years but not to exceed the difference between 70 and the buyer’s age at the time of filing the application.

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 and provinces all over the country.

The GSIS was able to sell more than 344 house and lot units last year under the GMA HeLPS, for a total consideration of P313.91 million.

GSIS President and General Manager Winston F. Garcia said SAIS and GMA HeLPS not only encourage GSIS members to invest in real estate, but also compel banks and other financial institutions to come up with similarly generous housing loan programs.