Double whammy: Own a house, get your cash back in 20 years


BAGUIO CITY  – Homeless individuals can now own their house and get back their investments once they are able to settle their housing loan amortizations in 20 years, a senior official of the Philippine Veterans Bank (PVB) said here.

Miguel Angelo Villareal, PVB vice president for corporate communications and marketing, said their housing loan is totally different from the housing loan being offered by other banks and housing institutions because those who availed of their housing loan will own the house and get back their cash investments after the 20-year amortization period.

“We were able to devise a mechanism through the power of compounding that we will be able to give back to those who availed of the housing loan their cash investments which could be considered an added value to our existing product,” Villareal stressed.

He pointed out individuals wanting to avail of their housing loan should present to the bank the property which they opt to buy subject to the assessment of the institution.

Villareal said PVB is authorized to expose a maximum of 80 percent of the assessed value of the property which will be amortized for a fixed period of 20 years subject to an 8 percent interest per anum.

Aside from being able to have their title in their names, Villareal explained those who availed of the housing loan could invest their cash investments for other business interests as the bank will give their cash investments to them in cash.

He revealed the housing loan is for a fixed period of 20 years because it has been the one that was studied to be the most advantageous scheme for both the bank and the borrower as the institution will be shelling out their cash investments for the borrowers after the lapse of the 20-year loan period.

According to him, the financial viability of giving back the cash investments of housing loan borrowers is the bank’s trade secret which cannot be divulged but it is a viable and lucrative scheme providing an added value to the housing loan.

The PVB official claimed some 300 housing loan borrowers from the different parts of the country were already able to avail of the housing loan product of the bank and are now paying their respective amortizations for the prescribed 20-year period.

Villareal explained the PVB has sufficient funds to bankroll the sustenance of the long-term housing loan program to cater to the needs of homeless Filipinos to own their houses and most especially get their cash investments back for future investments that would improve their living condition.

Villareal is confident that there will be a good number of housing loan borrowers from the different parts of the Cordillera will be able to avail of the descent loan package that will help address the growing housing needs of Filipinos, especially those in the countryside.

He said giving back the cash investment of housing loan borrowers is part of the bank’s commitment to contribute in improving the standard of living of Filipinos by providing them the opportunity to own their houses and having substantial income which they could use for other productive purposes that will improve their living condition in the future.

By Dexter A. See