DAVAO CITY—The Bank of the Philippine Islands-Family Savings Bank (BPI-FSB) has offered what could be the banking industry’s lowest interest rate on housing loans as the BPI said it has also gathered more real-estate developers “under one roof to offer special deals and attractive rates for people seeking to own their very own house or condominium.”

Jose Teodoro K. Limcaoco, president of the BPI-FSB, said the interest rate of 5.5 percent on housing loans would be offered to clients who would apply during the “Housing Madness in Davao City” show at the Ayala-owned Abreeza Mall here on May 26 to 29.

“This is the lowest rate that I have ever heard of,” he told reporters here at the press briefing at the Café Laguna in Abreeza Mall.

The interest rate would be fixed for one year only for a short-term loan of five years.

But it may be extended for five years, if the loan term would be 15 years.

After the fixed rate would have lapsed, the bank would determine the rate based on prevailing market conditions “but which would be still affordable.”

He said 12 local and national housing developers with projects in Davao City, have joined the BPI program, a number that was double when it started the program in 2005.

“Since that time, a lot of changes have happened. Interest rate was then 12 percent and now it is much lower,” he said. “Davao now is much more vibrant, and you can just see people are spending a lot now.”

Approval of loan application was a lot faster, at one month, compared to several months five years ago.

He said the city is a close third to Metro Manila and Cebu in the BPI-FSB sales the past years. He said he would expect a similar high percentage of collection efficiency that it has enjoyed.

The so-called housing madness program of the bank was first tested in Bacolod City, Negros Occidental, where BPI said it was a success.

“All they have to do is apply for a loan during the event and have it booked on or before June 30 and they will get a 5.5-percent interest rate for loan repricing fixed for one year,” a bank statement said.

Clients would also be given P10,000 off on their first monthly amortization.

“Beyond June 30, applications received during the event and booked within the year will enjoy competitive rates and still get to enjoy P10,000 off on their first monthly installment,” the statement added.