The Government Service Insurance System (GSIS) approved P58.84 million worth of housing loans for Cebu province in the first nine months of this year.

This represented a nine percent increase from the P54.18 million worth of housing loans approved by the stat-run pension fund for government employees in the same period last year.

Mitos Galicinao, officer in charge of the Special Business Division, said the approved loans were for the financing of 117 housing units, one unit less than the 118 financed in the same period last year.

The latest figure is way off the full-year target of 675 housing units to be financed, for which the GSIS-Cebu has been given an initial budget of P69.996 million.

Galicinao said lack of awareness regarding the housing loan program of GSIS, called the Bahay Ko Program, could be a factor.

Another reason could be the low paying capacity of potential borrowers, who already have very little take-home pay.

Another problem is that in parts of Cebu, particularly the municipalities, many lots are not titled, a prerequisite for taking out a loan. The GSIS will not accept the tax declaration as substitute.

The GSIS also missed last year’s full-year target of financing 675 units, when it managed to finance just 137 units.

Galicinao said the GSIS is trying to increase the uptake on the loans by now allowing individuals employed by the private sector to be co-makers “just to increase the paying capacity” of the borrower.

The private sector co-maker needs to have been employed for a year as a permanent employee in the firm where he or she is working. Up to two co-makers are allowed, she added.

Merian Castellano, are manager, also said that since two years ago, the cap on housing loans had been removed, with borrowers able to take out any amount of loan “as long as you have the paying capacity.”

She said the Fund’s interest rates, at from eight to 12 percent, were also lower than those of banks.

The rates are also fixed for the term of the loan, for instance, 25 years, rather than repriced as they are at banks on regular intervals, like every quarter or few years.

Bahay Ko provides financing for the acquisition and construction of homes, improvement of homes, and refinancing of loans. CTL