Amid speculations that an asset price bubble could be in the offing, the Bangko Sentral ng Pilipinas announced on Thursday that it would impose limits to housing loans extended by banks to individual borrowers and to investments by banks in securities sold by real estate firms.
Housing and car loans extended by banks in the country grew at a double-digit pace in the first quarter as lenders serviced the growing demands of Filipino households for big-ticket purchases.
Loans, when put to good use, can provide the common Filipino the leverage to a wide range of investments, from small purchases to the big-ticket items like cars or houses.
Housing and car loans extended by banks registered double-digit growth rates in 2011 as a generally favorable outlook on future incomes boosted confidence of Filipino consumers to apply for bank loans and make big-ticket purchases.
The tycoon Lucio Tan-led Philippine National Bank unveiled on Wednesday what it claimed to be the cheapest home loan deal available in the local banking industry, in a bid to expand its consumer loan portfolio.
The state-owned Home Development Mutual Fund or the Pag-IBIG is working with housing developers to ease constraints on house financing without sacrificing prudential remedial measures introduced in the aftermath of the Globe Asiatique (GA) controversy.
Property developers are in for some rough sailing, as tough times threaten to loom.
The Department of Justice (DoJ) on Wednesday approved the filing of syndicated estafa against real estate developer Delfin Lee and his business associates in connection with the alleged fraudulent P6.65-billion loan that “ghost borrowers” obtained from the Home Development Mutual Fund (HDMF), otherwise known as Pag-IBIG Fund.
