PBCOM, Leuterio Realty partner on home loans-A A +A
Sunday, August 31, 2014
THE Philippine Bank of Communications has entered into a partnership with homegrown firm Leuterio Realty and Brokerage for the distribution of its home loan products through the latter’s nationwide network of close to 6,000 salesforce.
In a press conference on Saturday, PBCOM Home Loan Head assistant vice president Virgilio Caedo said the bank already released P1.2 billion for home loans since last year, close to its yearend target of P1.6 billion.
The P1.6 billion amount is part of the P6 billion consumer loan portfolio, which is comprised of home loan, auto loan and personal loan. The bank has released P4 billion in consumer loans.
“We started our consumer loans aggressively on the start of 2013 and we have been booking this much already,” said consumer finance group head FVP Ricardo Mendoza.
In previous years, Mendoza said PBCOM concentrated on corporate loans. He noted that the decision to aggressively push for consumer loans last year is driven by the growing demand of the consumers in terms of access to financing, citing in particular home loans.
The rate of approval for home loans in PBCOM is at 78 percent.
Up to 80 percent of the appraised value of the property is the loanable amount in PBCOM with a maximum loan term of 20 years.
Aside from home loans, PBCOM officials said brokers and agents of Leuterio Realty and Brokerage can also endorse personal loans and auto loans.
PBCOM booked P2.4 billion for personal loans and P2 billion for auto loans this year.
“(In buying a house or condominium) buyer reserves (the property) then pay for the down payment which is spread in two years. Then after two years, the buyer will choose the path that will finance the house. PBCOM is there to help them get their house through financing,” said Rent.ph managing partner Chris MalazarteWith more access to finance, Malazarte said, Cebu and the country’s real estate industry will continue to grow.
In addition, the partnership will also equip them to being “full service and globally competitive agents” which will be assisting home buyers from scratch to home acquisition, stressed Malazarte. The move is in line with the Association of Southeast Asian Nation (Asean) full integration where real estate practitioners can practice their profession in Asean-member countries.
Comparing the present quality of the country’s real estate brokers and agents, Malazarte said local practitioners are “not so conversant” on finances compared to Singaporeans and Malaysians.
“We would like to level up that (financial) knowledge in our agents as well as the kind of service that they should give, (they) have to know the financing terms, know which banks are the right for (their) clients. We want our agents to have that kind of skill,” Malazarte said.
Published in the Sun.Star Cebu newspaper on September 01, 2014.