GSIS President and General Manager Winston Garcia said the GSIS housing loan portfolio - called the Bahay Ko Program (BKP) - has done away with borrowers' burdens such as processing, appraisal, and inspection fees.
Instead, the BKP now charges a nominal P500 application fee, which is only collected once a housing loan application is approved.
Typically, housing loan programs from private and government financial institutions charge P1,000 to P2,000 in application fee and another P1,000 to P2,000 in processing fee.
Apart from this, borrowers are required to cough out appraisal and/or inspection fees usually equivalent to .5 percent of the loan proceeds. This means that if one is getting a P1 million loan, he needs to pay in advance another P5,000.
Garcia said the GSIS finds the practice of collecting extra charges as counter productive because it discourages people from availing of housing loans.
"The GSIS is simply reiterating its seriousness in helping our people acquire their dream homes. I think such sincerity will appear contradictory if we collect expensive and often unnecessary fees," Garcia said.
He said a housing loan, in itself, is an investment whose interest alone will translate to income, whether or not additional fees are imposed.
"We believe our housing loan program will earn more if we allow more people to benefit from it. By collecting minimal fees, we have a win-win situation that affords us to earn and at the same time assist more GSIS members in acquiring decent shelter," he said.
The BKP-available exclusively to active GSIS members-is not only one of the most affordable, but is also one of the most flexible housing loan programs in the country.
BKP provides loans up to 90 percent of the appraised value of the house with fixed interest rates. Depending on the type of housing unit and its amount, BKP loans have 15, 25, and even 30-year repayment terms.
The BKP is GSIS' way of supporting the National Housing Shelter program of President Gloria Macapagal Arroyo, whose administration is aiming to provide shelter for over one million Filipino households in the next six years. - Jasmin R. Uy