NBS ups mortgage ceiling to $20M

Sep 01, 2022 News

– announces reduction in interest rates, plans to open four more branches

By Rehanna Ramsay

Kaieteur News – The New Building Society (NBS) has introduced a host of new measures that will make it easier for potential homeowners and those desirous of upgrading the current living conditions to access the loans to do so.

The New Building Society Headquarters North Road and Avenue of the Republic, Georgetown.

Speaking at media briefing at the Society North Road and Republic Avenue Headquarters, Chairman of NBS Nanda Gopaul, on Wednesday, announced the new measures which he said include a borrowing ceiling that is now increased from $15 million to $20 million as well as reduced interest rates in each category of mortgage, which will all be effective as of September 01, 2022.

Gopaul told the media that the decisions come as a result of meetings with President Irfaan Ali, and the Board of Directors of the New Building Society Limited. According to the Chairman, both existing and new borrowers will benefit from the new requirements. “With effect from September 1, 2022, all borrowers will see a reduction in the rates of repayment as follows: for $1M to $4M, the interest rates will be 3.5 instead of four percent which previously exist.” “From $4M to $9M, an interest rate of 3.7 percent will be payable instead of 5.95 percent. From nine million and one dollars to $20 million dollars, 5.70 percent instead of 5.95 percent,” the Chairman explained.

Chairman of NBS, Nanda Gopaul

According to Gopaul, the Society also intends with effect from January 01, 2023, to change the interest calculation to that of reducing the monthly balance upon the payment of every monthly sum due and payable. The Chairman noted too that NBS has given the commitment to the Government to release a substantial sum “of our cash resources, of approximately $20 billion, for housing development in the country.” “We want to see a roof over the head of every single person with a house lot…” he said.

He said, “We are willing to participate in the furtherance of aggressive housing drives which we have seen the Government has embarked upon. With the drop of the interest rates, some 9,634 mortgagors will benefit from a reduction, by approximately $210M in reduction in their installments for 2022 and this reduction will continue for the duration of the loan period.”

He revealed too that since the Housing Expo 2022, NBS was approached by nearly 500 persons who prequalified for mortgages. According to the Chair, to date, 302 have had those loans processed.

In the meantime, the NBS Chair said that the Society has changed the approval criteria drastically to allow for persons, to do so with ease, in that they no longer have to bring estimates for their loans.

He said, “There are no impediments in you owning your own home, once you have a transport or title for a house lot…The Society wants to make housing loans not only affordable but also easily accessible to every Guyanese holder of house lots. Once they have a house lot, either in the form of Transport or Title, and an approved plan, the loan requested, based on our assessment, will be approved almost immediately.”

Further, Gopaul told reporters that those borrowers can expect a rapid improvement in the waiting time for borrowers to access their approved funds. “Once the mortgage is approved by the Society and that should be within a 24-hour period that the process of filing to the Deeds Registry and other Government agencies responsible for the processing of mortgages should be done within 48 hours,” he explained.

“So, they need not hesitate or they need not have any fear over repayment affordability, since the repayment in most instances is cheaper than having to rent properties,” added Gopaul.

He said too that the society would no longer be stipulating that persons must have a certain amount of money at the commencement of the construction phase. In these circumstances, therefore the NBS Chair urges all Guyanese who are owners of vacant lots with titles or transport to take advantage of the opportunities.

In the interim, he said that the Society is expanding its service around the country by establishing four additional branch offices; one at Lethem, where we already have a plot of land and on the East Bank of Demerara, the West Coast of Demerara and on the East Coast of Demerara.

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