Latest update January 1st, 2025 1:00 AM
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NBS gets approval to increase ceiling for housing loans
Finance Minister, Dr. Ashni Singh.
Kaieteur News – The Ministry of Finance will today formally hand over to the New Building Society (NBS), the relevant approvals necessary to cater for the increase in the ceiling applicable to mortgages granted by the financial institution.
The move, according to the Ministry of Finance, is in keeping with “Government’s continued effort to increase access to mortgage financing for prospective home-owners as well as expand the housing drive countrywide.”
The announcement had initially been made during his Budget 2021 presentation in February last. Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, at the time told the National Assembly that the decision was taken, cognizant of the fact that NBS “has been an important source of financing for home construction and home ownership over the years.”
Currently, the ceiling on loans that the NBS can grant is $12 million and as such, Dr. Singh announced, “we are proposing to approve an increase in the ceiling to $15 million.”
This, he said will also enable borrowers desirous of borrowing within that range to access financing from the NBS.
The move by the administration follows on from a similar move the previous year when there was an increase announced from $8 million to $10 million in the ceiling on low income housing loans that may be obtained through commercial banks under the low income housing loans programme supported by government.
According to Dr. Singh, “this year, we would like to announce a further increase from $10 million to $12 million, which will make housing loans more affordable to borrowers within that range.”
He had further noted at the time, the resumption of the Government’s house lot distribution and land titling programme, restoration of the $30 million limit on loans eligible for mortgage interest relief (MIR).
Additionally, he spoke to the raising of the limit for low-income housing loans for corporate tax relief in the banking sector to $10 million.
According to Dr. Singh, the measures are “combined to stimulate a restart of activity in the construction sector and made home ownership immediately more affordable.”
Addressing the matter of housing in the 2021 Budget Estimates, Dr. Singh told the House that home ownership is one of the fundamental pillars upon which the Guyanese dream is built; as such, his administration would be continuing with its a policy of creating decent and affordable housing for all Guyanese.
He had underscored that before his party—the People’s Progressive Party Civic (PPP/C)—government demitted office in 2015, a total of 22,964 house lots were allocated “during our last five years in office.”
This he contrasted to the 7,534 house lots under the coalition administration during its five-year period in office between 2015 and 2020.
According to Dr. Singh, Government’s commitment over the next five years is to make available 50,000 house lots across the country and that the major partner in this exciting and evolving transformation will be the private sector who, together with Government, will create the incentives and opportunities for affordable housing, for persons to own their own homes.
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