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The thrift banking arm of Bank of the Philippine Islands (BPI), BPI Family Savings Bank (BFSB), is expecting a 15-percent growth in the company’s housing loan portfolio in 2019. This is due to BSFP’s bullish approach to increased consumer confidence and continued robustness of the country’s economy.
One of the company’s plans to move towards this direction through its Family Housing Loan Promo, a first-of-its-kind home loan offering with free savings accounts.
Increased purchasing power
In her speech during the media launch of the said home loan promo, BFSB President Ginbee Go said the top three goals of Filipino consumers is to have their own house, to have a bank account and own a car, and finally, to put up a business. And with the continued expansion of the domestic economy, Go said workers are now more capable to achieve their dream homes.
“New cities will rise as a result of the establishment of businesses, leading to job creation and increased demand for housing,” she said.
Explaining the company’s double-digit growth projection, she said that 15 percent is the high end of their 10 to 15 percent target, adding that it will all still boil down to the trajectory of the country’s economic activity and interest rates.
“At the end of the day, it’s not the interest rate that really is the gauge by which consumers will avail— its affordability,” she said.
Addressing the housing backlog
Go noted that the Philippines currently faces around 200,000 units of affordable housing backlog and is expected to rise to around four to six million by 2023 due to urbanization.
“More than a challenge on that backlog, this presents a big opportunity waiting to be fulfilled. For us in BPI Family, this thrives us to design financial solutions to have more families to afford their dream homes,” she added.
For his part, BFSB Vice President Dennis Fronda said they aim to release PHP60 billion worth of housing loans this year from PHP40 billion last year.
“We want to grow more aggressive nationwide,” he said.
BFSB officials are optimistic that housing loan growth will be boosted by the promo.
Through the latest Family Housing Loan Promo, a client who avails of a housing loan can earn up to Php 100,000 in a savings account under his or her name. For every Php 1 million approved loan amount, a client will be given Php 10,000 in a BPI Maxi Saver or Pamana Savings account, up to a maximum of Php 100,000 for a loan of at least Php 10 million.
Clients may choose the Maxi Saver account (with higher yielding interest) or the Pamana Savings account (bundled with insurance coverage), which will be made available after two months of amortization payments. The promo is available until May 31, 2019, only.
Read our previous real estate news to keep up with the latest on the Philippine property sector.