Just over a week after the Government had given approval to the New Building Society (NBS) to raise its loan ceiling, the Government will be granting the India-owned Bank of Baroda approval to offer mortgages to homeowners.
According to a notice, this move is in keeping with Government’s continued effort to increase access to mortgage financing for prospective homeowners as well as expand the housing drive countrywide.
It means that the Bank of Baroda, which was on the verge of exiting Guyana’s market back in 2018, will be designated as an approved Mortgage Finance Company in keeping with Section 15 of the Income Tax Act, Cap 81:01.
In this regard, it was also announced that the Finance Ministry will be hosting a ceremony today to formalise this process with the Bank of Baroda at the Arthur Chung Conference Centre (ACCC).
Last week NBS, which is already known for its low mortgage interest rates, announced a reduction in its interest rates. This is a measure that will likely bump up the number of new loans being granted.
During a brief ceremony at the ACCC on March 10, Finance Minister Dr Ashni Singh handed over approval to raise the loan ceiling from $12 million to $15 million. This measure will allow homeowners increased financing options when borrowing a loan.