NBS instructed to increase mortgage lending limit – Pres Ali

…to also cap mortgage interest rates at 5%

President Dr Irfaan Ali has announced that as part of its commitment to improved living standards for workers in Guyana, the New Building Society (NBS) will be increasing its lending limit while ensuring that interest rates remain low; making home ownership even easier for the population.
The President made this announcement during a labour day brunch at State House on Sunday, where he assured workers that under his Government, they will continue to benefit from increased wages and other benefits.
“At 9:45 am, I instructed the Minister of Finance to write to the 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,” the President declared.
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. He therefore urged those at the labour brunch and around the country to vote wisely.
“Do you want a higher standard of living? Then you know who you can trust to give you that. The People’s Progressive Party/Civic Government. Do you want improved retirement benefits? Do you want continuous increases in your old age pension?” President Ali asked.
“For greater and more improved retirement benefits? You can trust the People’s Progressive Party/Civic Government. You want continuous increases in your disposable income? You want more cash grants? You want more subsidies? Then you know who you can trust to give you more cash grants, more ‘Because we care’ grants, more transportation and children grants.”
A few years back, President Ali had 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 President Donald Ramotar led 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.
This had allowed customers submitting and obtaining loan approvals to enjoy several benefits, including waiver of processing fees, 50 per cent waiver of attorney fees, waiver of site inspection fees, competitive equity contribution, and no anticipatory interest on principal payments.
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.