Catering to the needs of current and future homeowners, the New Building Society (NBS) has reduced its mortgage rates from four per cent to 3.5 per cent.
With booming housing development across Guyana, the Society’s Chairman Nanda Gopaul, on Wednesday, announced that the reduced rates will be effective as of September 01, 2022.
“We want to see a roof over the head of every single person with a house lot… following meetings with his President Irfaan Ali, the Board of Directors of the New Building Society Limited has taken several decisions with respect to granting relief in mortgages to borrowers of the society,” Gopaul said.
Both existing and new borrowers will benefit from this reduction.
“With effect from September 1, 2022 all borrowers will see a reduction in the rates of repayment as follows: for $1 million to $4 Million, the interest rates will be 3.5 instead of four per cent which previously exist.”
“From $4 million to $9 million, an interest rate of 3.7 per cent will be payable instead of 5.95 per cent. From nine million and one dollars to $20 million dollars, 5.70 per cent instead of 5.95 per cent,” the Chairman explained.
In addition, the Society intends to change the interest calculated by reducing monthly sums due and payable effective January 01, 2023.
A further reduction on mortgages will be granted to Region Nine residents. The bank will provide loans to 300 borrowers at $2 million per mortgagor at the rate of 3.50 per cent. This is approximately $20 billion.
During a recent visit to the region, President Ali announced persons holding land titles will be assisted with construction material the hinterland housing programme. This will qualify persons to draw down on immediate installments from the bank to continue building.
According to Gopaul, the NBS bank intends to participate in the aggressive housing drives that the Government has embarked on. To this extent, the Chairman said 9,634 mortgagors will benefit from the reduction in their installments for 2022 and this reduction will continue for the duration of the loan period.
“We have changed the approval criteria. The Society would no longer be stipulating that persons must have a certain amount of money at the commencement of the construction phase,” Gopaul said.
Persons eligible for these mortgage loans must be the holders of a land title.
Asked what pushed the bank to make these significant reductions, he said, “With the recent housing drive, we recognise that interest rates in this country were high and we believe that if we want to make it affordable, we ought to start, as one of the leading housing institutions in this country, we decide that we are going to set the lead.”
Gopaul urges persons who are holders of land titles to engage the bank to commence their journey of owning their own home.
Meanwhile, the bank will also undergo massive expansions into other regions to ensure that clients from every region can access the banks. A new location for the Region Nine residents to easily be assisted is being explored by way of renting while the bank awaits the construction of a new building on a site that has been earmarked in the region. Other sites earmarked include a location on the East Coast of Demerara, the East Bank of Demerara and Region Three, within the Leonora village.
“These are areas where the housing drive will intensify.”
“The plan and engineer estimates are currently being worked out and as soon as that is finished we will work with haste,” Gopaul said.
In March, 2021, NBS had reduced the interest rate on loans up to $6m to 4% from 4.25%. The rate on loans from $6m to $12m had been reduced to 5.95% from 6.15% and 6.75% depending on the agreement. For loans above $12m and up to $15m the rate was set at 6.25%.
By December 2021, NBS announced a further cut in its interest rate for mortgages between $6m and $15m.
In a statement, the NBS said that from January 01, 2022 the interest rate on loans from $6M to $15M – has been reduced from 6.25% to 5.95% per annum. This was applicable to both current and new loans.
