First-time homeowners in Guyana will now be able to deduct the full amount of interest paid on mortgages of up to $30 million from their taxable income. This announcement was made by President Irfaan Ali during the opening of the International Building Expo 2026 at the Providence National Stadium.
President Ali described this measure as a practical way to assist Guyanese families with the costs associated with home ownership. He stated, “The government has doubled the ceiling and mortgage interest tax relief for first-time homeowners under Section 28 of the Income Tax Act.” He explained that homeowners living in their own property can now deduct the full interest paid on mortgage principal up to the specified amount.
Ali emphasized that this initiative is part of broader reforms in the housing and mortgage sector since the current administration took office in 2020. He noted that the New Building Society mortgage ceiling has seen significant increases since then.
In addition to providing access to loans, the President mentioned that the government aims to be a partner in home building. He highlighted changes in the banking sector, where commercial banks have reduced mortgage rates and expanded access to larger loans, reflecting confidence in the economy and housing market.
- Republic Bank has removed its residential mortgage ceiling, offering loans of up to $60 million at five percent, with rates starting as low as 3.5 percent.
- GBT has restructured its mortgage portfolio, with standard rates beginning at three percent from May 1.
- Citizens Bank has introduced mortgage rates starting from 3.5 percent over a 35-year term, along with 100 percent construction financing.
- Demerara Bank and Scotiabank have also made similar reductions in mortgage rates.
President Ali stated that mortgage rates, which were previously between eight and 15 percent, have been significantly reduced across the system. He views home ownership as a foundation for security, stability, and belonging, noting that owning a home allows families to build equity rather than pay rent.
Since 2020, there has been a notable increase in housing demand, with applications rising by approximately 60,000. Currently, there are about 81,000 applications in the housing system, with a significant portion originating from 2020 onwards. The average age of new applicants is just over 23, indicating a growing interest among young people in home ownership.
Source: hgptv.com
