…50% discount on attorney fees; elimination of processing fees, same-day approval
Days after President Dr Irfaan Ali announced that the New Building Society (NBS) will increase its lending limit while maintaining low interest rates as part of efforts to improve living standards for workers in Guyana, Demerara Bank has now followed suit.
The bank has announced a reduction in its residential mortgage interest rate to five per cent for loans of up to $30 million, further enhancing access to affordable home ownership for citizens.
On Wednesday, the Bank said that the announcement underscores the its continued commitment to national development and improving the lives of everyday Guyanese.
The reduced rate applies exclusively to residential mortgages and is accompanied by a suite of cost-saving incentives. These include a 50 per cent discount on attorney fees, the elimination of processing fees, and a waiver of site inspection fees, measures that significantly lower the upfront costs associated with homeownership.
“This is our way of giving back and standing with our citizens as they build better futures,” Chief Executive Officer of Demerara Bank Limited, Dowlat Parbhu said on Wednesday, adding that “by lowering rates and removing several key costs, we’re not just offering financial products, we’re offering real support to the people of Guyana.”
The initiative is part of the Bank’s strategy to support community development and strengthen the national housing sector. It is expected to provide substantial relief for middle-income families seeking to own their first home or upgrade their living conditions.
The bank said that interested applicants can begin the mortgage application process online via the Bank’s website and benefit from same-day approval, making the path to homeownership quicker and more convenient.
On Sunday, President Ali during a Labour Day brunch at State House said that he had instructed the finance minister write NBS and to increase their loan limit to $30 million “with the guarantee that their interest rate on loans $30 million and below for housing will be 5 per cent maximum.”
According to President Ali, this is among the raft of measures the People’s Progressive Party/Civic (PPP/C) Government will be rolling out for working class Guyanese.
President Ali had previously revealed that there has been a 41.25 per cent growth in lending for home ownership and house construction from 2020 to 2023. This figure has steadily increased over the years.
One of the measures that has had a positive impact on mortgages has been the mortgage interest relief, which the PPP/C Government had increased from $15 million to $30 million. It was announced last year that almost 17,000 home owners had benefitted, with over $2.7 billion going back into their pockets.
Mortgage interest relief is a tax refund from the Guyana Revenue Authority (GRA) that reduces the amount of interest paid by a homeowner on their mortgage. The initiative was introduced in Guyana back in 2013 under the then PPP/C Government.
Additionally, with the encouragement of the state, several banks have also been implementing promotions aimed at easing the process of home ownership for customers. Among those measures were the Demerara Bank Limited’s, “A Loan That Brings You Home” promotion.
Meanwhile, GBTI had launched its “Dream Big – We’ll Take Care of The Rest” promotion, offering reduced interest rates to aid persons seeking financial assistance to buy, build or complete their new homes, or for persons wishing to renovate their homes.
Citizens Bank had implemented its “My Time Home Mortgage” promotion, offering prospective homeowners the chance to benefit from interest rates as low as 3.5 per cent, reduced loan fees, insurance premiums, and a maximum of 30 years to repay.
