NBS announces further mortgage rate cuts, expansion of services

─ says changes prompted by President Ali

The New Building Society Limited (NBS) on Wednesday announced further slashes in mortgage rates for existing and potential customers, following an extensive meeting with President, Dr Mohamed Irfaan Ali.

President Ali announcing housing relief measures at the International Building Expo 2022

In a press release, the company outlined that from September 1, 2022, the mortgage rate will be reduced to 3.50 per cent for persons borrowing up to $4 million.

For customers burrowing up to $9 million, the rate was cut from 5.95 to 3.75 per cent and customers borrowing between $9 million and $20 million will benefit from a slashed rate of 5.70 per cent.

The lending institution highlighted that it found the need to bring some relief to citizens as it relates to mortgage rates, especially considering the ramping up of housing development in the country.

“The Society is heartened by the housing drive and the opportunities provided to financial institutions at this point in time to be a partner in the government’s development plan for housing,” the press release noted.

Moreover, NBS will construct four new branch offices across the country to provide easier access to persons seeking mortgages for their homes.

“The Society…would also like to mention that it would be establishing four (4) additional branch offices; one at Lethem…on the East Bank, the West Coast and East Coast of Demerara, where His Excellency, the President Dr Mohamed Irfaan Ali has approved lands for the construction of branch offices,” NBS said.

The announcement comes on the heels of a recent announcement by President Ali that some 600 persons who have been allocated low-income house lots in Lethem, Region Nine, will receive $1 million each to commence constructing their homes.

This programme will also be supported by NBS, “providing loans to 300 borrowers at $2M per mortgagor at the rate of 3.50 per cent”.

Committing to ensuring homeownership is more affordable for families, that every citizen is lifted out of poverty, and that there is an increase in the net worth of every Guyanese, Dr Ali at the recently concluded International Building Expo announced several initiatives.

Dr Ali said that persons building homes for $6 million and below will receive, from the government, the steel and one sling of cement required to build the foundation.

He also announced that banks have agreed that there will be no percentage requirements for loans below $6 million.

The announcements by the NBS have added to an already robust system set in play by the administration to help citizens become homeowners.

The government announced in 2020 the zero-rating of construction materials, while industrial grade cement duty was also reduced from 15 to five per cent.

Additionally, there has been an increase in the low-income mortgage loan ceiling from $10 to $12 million. Such loans can be obtained through commercial banks under the low-income housing loan programme.