Gov’t continues to make homeownership easier for Guyanese

As part of its manifesto commitment to make homeownership more affordable for Guyanese, Senior Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh announced recently that the low-income mortgage ceiling has been increased from $15 million to $20 million.

To make homeownership more accessible to all citizens, the government has also established a Home Construction Assistance Programme through financial organisations that will allow persons to access funds to build their homes.

A housing scheme

The President Dr Mohamed Irfaan Ali-led government remains keen on making the process easier for obtaining loans, hence, borrowing costs from commercial banks will be lower under the low-income housing plan, which will encourage more homeownership.   

The government remains cognisant that becoming a homeowner is the most significant accomplishment for practically any family.

To date, some 194 persons have accessed loans.

To lower the cost of homeownership and support the government’s vigorous housing drive, Dr Singh told the National Assembly, I propose the removal of the 14 per cent VAT concerning the sale of residential properties, which will also further reduce the cost of homeownership.”

He was presenting the 2023 National Budget.

The government has also lowered mortgage interest rates.

The collaboration and responsiveness of the commercial banks have also contributed to improvements in the housing sector, adding to an already robust system set in play by the government to assist citizens.

Recently, the government was able to work out a deal with three commercial banks and the New Building Society (NBS) that would allow soldiers to pay back loans with interest rates of 3.5 per cent for amounts under $4 million and 3.75 per cent for amounts under $8 million.

Since banks have significantly lowered their interest rates, many people are benefitting from the favourable investment environment.

The government continues to assist persons who have the means to construct their homes, through the cement and steel subsidy programme, which was launched in July 2022 to provide steel and cement to new home builders.

Persons constructing homes costing $6 million or less, will be given the steel needed and one sling of cement for the construction of the foundation. For home builders spending $6 million to $25 million, the government will provide two slings of cement.

To ensure that the lives of Guyanese are enhanced, the government continues to daily extend its ambitious housing programme. The PPP/C Administration has given thousands of families house lots.  

Some $54.5 billion has been budgeted for housing development in new and existing regions in 2023, which includes building roads, drains, bridges and utilities to accommodate housing demand. This is in keeping with the aim to distribute 50,000 house lots by 2025.

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