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|The New Building Society Limited (NBS) on Wednesday announced further slashes in mortgage rates for existing and potential customers.
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 rate of 5.70 per cent.
The Low-Income Mortgage Loan ceiling is now $12 million and these loans can be obtained through commercial banks under the Low-Income Housing Loan Programme.
NBS said it found the need to reduce mortgage rates in consideration for the ramping up of housing development in Guyana.
Housing development in Guyana is still devoid of modernity and government putting in place proper infrastructures such as asphalt roads, proper drainage, sewage systems, electricity, water, streets lights, shopping centre, recreation facilities, health centre, police outpost, and other features evident in 21st century housing development and common in other countries. In Guyana when these are installed, even if substandard, they come long after persons have built their homes.
It is quite characteristic in Guyana to see new developments with surrounding tall grasses and beautiful homes snug among these, people living with the ever present fear of rodents and reptiles being in close proximity, new homeowners having to navigate threats to life, limbs and concern for vehicles in getting construction materials to their homes, and having to traverse in and out of these areas on poorly constructed loam roads and/or roads with holes like craters.
NBS plans to build four new branch offices across the country to provide easier access to borrowers. To this end offices will be constructed at Lethem, the East Bank, West Coast, and East Coast of Demerara on lands approved by the government.
President Ali had recently announced some 600 persons in Lethem, Region Nine, were allocated low-income house lots and will each receive $1 million from the Government of Guyana to commence building 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.”
At the recently concluded International Building Expo the President had announced persons building homes for $6 million and below will receive, from the government, one sling of cement and steel to build the foundation, and that the Banks have agreed there will be no percentage requirements for loans below $6 million.
There is zero-rating of construction materials, and duty on grade cement is now five per cent, down from 15 per cent.