GSIS sells foreclosed housing units by offering low interest

01/30/2009 | 01:47 PM

MANILA, Philippines - The Philippines’ pension fund manager for government employees has sold housing and property assets it foreclosed by offering a low fixed rate to buyers.

Some 344 house and lot units worth P313.91 million were sold through its asset disposition program, the Government Service Insurance System (GSIS) said in a statement.

Launched in May 2007, the program – called Garantisadong Mababang Amortization na House En Lot Para Sa'yo (GMA HeLPS) – offers a six percent interest rate that is “fixed throughout the term of the loan, thus, not subject to re-pricing."

The program is available to both members and non-members.

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.

Besides offering easy and multiple payment options, the program allows home buyers to make 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.

To further encourage buyers, the GSIS has waived application fees for interested parties and has required 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. Cash buyers will be entitled to a 10-percent discount on the selling price of the property.

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 GSIS; and not an employee of the GSIS directly involved in the disposition of acquired assets.

Meanwhile, institutional buyers must be a domestic corporation, provident fund, association, local government unit, and the like; must be allowed by its by-laws to purchase a real property in the Philippines; and must 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.

To get a listing of the inventory of properties for sale under this program, a prospective buyer may simply visit the GSIS website at www.gsis.gov.ph or inquire from the nearest GSIS servicing office.

"With the help of GMA HeLPS, which offers the most attractive interest rate there is in the local market, dreams of owning a house is no longer far-fetched," GSIS President and general manager Winston F. Garcia said in the same statement. "This is in line with the vision of President Gloria Macapagal-Arroyo of making owning a house very affordable for everybody."

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.

Source: GMANews.TV