First-time homeowners can now deduct the full interest paid on their home loans from their taxable income, after the government doubled the relief ceiling under Section 28 of the Income Tax Act, President Dr Mohamed Irfaan Ali announced on Thursday at the opening of the International Building Expo at the Guyana National Stadium in Providence.
The ceiling now covers mortgages of up to $30 million, up from the previous limit.
“What does this mean in practice? It means the government is sharing the cost of your mortgage with you,” President Ali said. “We’re not just giving you access to a loan. We are making the government your partner in building your home,” according to Dr Ali.
He said the relief would return money to homeowners each year.
The president said, “Every year when you file your taxes, the interest you paid on your home loan comes back to you directly, reducing the tax you owe, increasing your disposable income, and putting more money back in your pocket.”
The head of state framed the measure as part of a wider housing push that has driven applications in the system to 81,000. Of those, 67,000 are new applicants who entered since 2020, with an average age of about 23.
He also committed to clearing the backlog of land titles at a faster pace. The government processed 30,000 titles between 2020 and 2026, with just over 20,000 still outstanding.
DPI
