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NBS further reduces mortgage rates

An aerial view of Diamond Housing Scheme, East Bank Demerara.

The New Building Society (NBS) today announced yet another reduction on mortgage rates with effect from July 1, 2013.

According to a release from the Society, this move is a reflection of its continuous quest to ensure affordable mortgages for citizens.

Over the past few years, the NBS has asserted itself as a major player in the residential mortgage market and more recently, increased advances have been made to mortgagers. In 2011, advances made to mortgagers amounted to $4.2B and $6.75B in 2012. This year, the Society is projected to surpass these figures.

The new mortgages rates are as follows:

Mortgage Range New Rates of Interest
$4M and less 4.25%
$4M to $10M 6.15%
$10M and above 6.25%

Close to ten years ago, the Government of Guyana created incentives to encourage mortgage lending to low-income families. Under this programme, if persons access loans, they would not be required to pay corporate taxes on income earned from these mortgages and the reserve requirements on these loans are waived.

In 2009, Government approved an increase in the ceiling on loans granted by approved mortgage finance companies for the purposes of low income housing. The newly approved ceiling was $3 million, a 50 percent increase on the previously applicable ceiling of $2 million and relates to loans granted under the low income housing programme that Government had established in 2001.

The mortgage initiative has enabled more Guyanese to be able to finance acquisition and construction of their own homes.