DAVAO CITY, Aug. 21 (PNA) — The government will further lower the interest rates of housing loans for socialized housing packages to allow more people to access housing loans, especially the informal sector at very affordable rate.
Vice President Jejomar Binay, the country’s Housing czar, announced during the national conference of the Organization of Socialized Housing Developers of the Philippines (OSHDP) on Friday at Grand Men Seng Hotel here that studies are ongoing to lower the interest rate to 3 percent.
He said current packages offered by the government housing agency of about P400,000 with monthly amortization of P2,300 is not a realistic package for the lower sector but this can be split to packages of P200,000 or P100,000 and with the lowered interest rate the amount for monthly payment could be at P350.
The amount, he said, will only be the cost for the house and the land will be sourced out through the local government units (LGUs) utilizing some of their idle properties through usufruct agreement.
Binay said in administering this kind of project, the developers can be given incentives from the Bureau of Internal Revenue in support to the lowering of cost of business operation.
He said the LGUs will identify the land and put in the roads and they will provide the financing for the construction of houses.
He admitted, however, that there are not enough funds in the government for socialized housing except that of Pag-IBIG Fund even as he said that because the Fund is already tax-exempt, the P2.5 billion savings could be used for projects under socialized housing.
Vice President Binay also addressed the luncheon General Membership Assembly of the Davao City Chamber of Commerce and Industry (DCCCII) where he said the relationship between government and the private sector is both through cooperation and coordination.
He said business is a continual dealing with the future and they deal not only with communities but the customers and consumers.
“As head of HUDCC, I also ask you to consider investing in building of homes and we should not only build houses for families but homes for families where their bodies could rest, their spirit soar and find love and peace,” he said.
He said this dream could not be possible without the help of the local government units of finding areas where these projects can immediately take off.
“We need to sustain this confidence and we need to show this to the world,” he said. (PNA) scs/Digna D. Banzon/lvp