The $30 Million Low Income Mortgage Ceiling Confession

Jan 28, 2026 Letters

Dear Editor,

As we begin the rigorous interrogation and scrutiny of Budget 2026 in the National Assembly and across the public domain, I intend to dissect these estimates from several critical aspects over the coming days. However, permit me this initial foray regarding a specific policy announcement that quietly admits the failure of the government’s housing model.

Buried in the Finance Minister’s six-and-a-half-hour trilogy of a presentation was the announcement that the Low-Income Mortgage Ceiling has been raised from $20 million to $30 million, and that the programme will now be extended to insurance companies. While the government frames this as expanding access to financing, a forensic look reveals it is actually a confession of three dangerous realities.

First, it is a confession of runaway inflation. By raising the ceiling by 50%, the government has officially admitted that $20 million can no longer build a basic home in Guyana. This is not an increase in the value of the home; it is an increase in the cost of the debt. Inflation in sand, stone, and labor has driven construction costs so high that the previous “low income” bracket has been rendered obsolete. Instead of using oil revenues to subsidise materials and bring the cost of living down, the government’s solution is to authorise the poor to borrow more. I think this is what economics thought leader Paul Collier calls “hierarchies of humiliation” in his seminal text, ‘Left Behind’.

Secondly, it redefines “Low Income” out of existence. A $30 million mortgage, even at concessionary rates, requires a monthly repayment of approximately $150,000. I ask the Minister: which “low income” worker takes home enough to pay a $150,000 mortgage and still feed their family? The true working poor, security guards, teachers, public servants, are now completely priced out of this bracket. This policy does not help the poor; it encourages the middle class to take on unmanageable debt to cover the government’s failure to control construction costs.

Finally, the shift to Insurance Companies signals “Lender Fatigue.” The decision to extend this programme to insurance companies suggests that commercial banks are reaching their risk limit. Banks are likely seeing the “Paper Landlord” crisis we have identified, thousands of allocations in schemes with no roads or water, and are becoming hesitant to lend $30 million on assets with no infrastructure. By tapping into insurance funds, the government is seeking a new pool of cash to keep the housing bubble inflated, effectively shifting the risk from banks to the pension and policy funds of ordinary citizens.

This Budget does not offer the working class a housing solution; it offers them a debt trap. A true Stewardship Government ‘putting people first’ would focus on lowering the cost of construction, not raising the ceiling of your debt.

Sincerely,

Sherod Duncan, MP

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