NBS to drop interest rates on mortgages from next year

The New Building Society Limited (NBS) on Wednesday announced that it will reduce interest rates on mortgages from next year.

Effective January 01, loans from $6M to $15M will be reduced from 6.25% to 5.95% per annum. This will be applicable to both current and new loans, NBS said in a statement.

For those who qualify for low-income loans, which are from $6M and below, the interest rate is 4.00% per annum.

“The reduction in interest rates will aggregately put millions of dollars per annum into the pockets of borrowers which is in keeping with our mandate to ensure that Guyanese can acquire ready and low-cost financing and therefore, become home owners,” the bank said in a statement.

NBS said it has recognized that the government has been aggressively pursuing policies and taking decisive action to improve the nation’s housing stock.

“This is a welcomed development and one that is pleasing to Guyanese in all walks of life,” the Bank stated, adding that it commits itself as an active partner to continue to support the enhanced housing drive and delivering finance to thousands of Guyanese who will benefit from the government’s programme.

The bank said it continues to play a critical role in providing affordable mortgage loans to Guyanese and in the process helping them to realise their dreams of homeownership.

“Since April 1, 2021, NBS announced an across the board reduction in Mortgage Interest Rates to all of its borrowers as we welcome the increase in the Society’s mortgage ceiling announced by the government from $12M to $15M dollars.

“With that increase, borrowers can now build a decent and modern home,” NBS stated.

The bank said the reduction of interest rates on mortgage loans has been a consistent feature of the Society’s policy which over the years has reduced mortgage interest rates down from twenty per cent (20%) per annum in 1990 to the current interest rate of 5.95% per annum.

While implementing this reduction, the Society still offers the best interest rate of 2.75% to all its savings account holders in the Save and Prosper category.