The Philippine government has long aimed to expand the mortgage market for their residents, and in 1977, established the National Home Mortgage Finance Corporation (NHMFC), which has developed and expanded a secondary mortgage market. It has also been a goal to expand green housing, and in 2020, the BALAI BERDE program was launched. This program acquires mortgages from home loan originators working on green housing projects, and then finances these purchases using green bonds.
NHMFC utilizes the International Finance Corporation’s (IFC) EDGE certification in order to verify that developments will support the country’s resilient recovery from the COVID-19 pandemic, while addressing the housing shortfall. EDGE certification requires that developments use at least 20 percent less energy, water and embodied energy in materials than a typical residential property, which also results in cost savings for residents. These projects also have low interest rates over long periods of time, with an interest subsidy available for low-income populations. This partnership between IFC and NHMFC makes clear that growing the mortgage market and the green residential sector are overlapping goals.
Sources:
Musić, R. (2021) Building the business case for green affordable housing. Enterprise Development & Microfinance. 32(3): 179–192. Link: https://doi.org/10.3362/1755-1986.21-00013
Ogrimen, A., Tan, A. and Cortez, C. (2021) BALAI BERDE promotes resilient recovery in PH housing with IFC’s EDGE, Philippine Daily Inquirer. https://business.inquirer.net/318163/balai-berde-promotes-resilient-recovery-in-ph-housing-with-ifcs-edge.