SHFC unveils pro-poor shelter financing for 16th anniv

In celebration of its 16th anniversary, the Social Housing Finance Corporation (SHFC) — the lead government agency mandated to undertake socialized housing for low-income earners — has launched new schemes to help more poor families realize their dreams of owning a home.

Starting the year with milestones

In a press conference last Jan. 24, the SHFC has enumerated several breakthrough accomplishments, as well was announced a series of new pro-poor shelter financing measures that will ease the burden for low-income households.

SHFC’s flagship program, the Community Mortgage Program (CMP), has benefited more than 350,000 families through over P16 billion in loan assistance since 1988. In 2019 alone, the agency recorded the highest takeout ever by assisting a total of 32,797 partner-homeowners through housing loans amounting to P2.48 billion. This number of partner-homeowners is twice that of the previous year, and nearly thrice to that of 2017.

(From left) Social Housing Finance Corporation (SHFC) EVP Atty. Junefe Payot, Department of Human Settlements and Urban Development (DHSUD) Sec. Eduardo Del Rosario and SHFC president Arnolfo Ricardo Cabling

Meanwhile, SHFC’s collections reached P1.11 billion in 2019, up eight percent from the year prior. The agency’s current collection efficiency rating of 72.03 percent is significantly higher than the 69.05 percent it posted in 2018. These achievements can be attributed to the decentralized approach of SHFC, which saw the opening of several branches nationwide, and to its strategy of working closely with local governments.

Lowest interest rate ever for housing loans

To assist more low-income families own their homes, the SHFC has announced the adoption of reduced or socialized interest rates for CMP full package availment — a loan for lot acquisition, site development, and house construction.

The new socialized rates will ease the constraints that low-income CMP borrowers face when paying their monthly amortization. Under the socialized approach, borrowers with lower household income will pay lower interest rates. Households within the lowest two income deciles will pay an interest rate of only two percent, down from the normal industry rate of six percent. In addition, the repayment term is extended to 35 years from the original 25 years.

Meanwhile, families in the 3rd decile pay an interest rate of 4 percent, while those in the 4th to 7th decile pay 4.5 percent. Families in the 8th to 10th decile, or those who have the highest capacity to pay, will continue to be charged at the original rate of 6 percent. They will all have a repayment term of 30 years.

Loan condonation to ease burdens

For those who have already availed of loans but are falling behind on their payments, the SHFC offers penalty condonation program under Republic Act 9507. The loan-restructuring scheme covers partner-homeowners with accumulated arrearages equivalent to at least three months amortizations, except those who have previously availed of the benefits.

The SHFC is the lead agency assisting underprivileged communities to secure land tenure through shelter financing and development solutions by Building Adequate, Livable, Affordable, and Inclusive (BALAI) Filipino communities. For more info, call  7750-6337 or visit