LOCAL lenders are aggressively pursuing thousands of prospective home owners by offering increasingly attractive financing terms.

A Government housing drive, which involves selling subsidised house lots, personal income tax relief on mortgage payments and corporate tax breaks for banks offering mortgages to low-income earners, has widely broadened the consumer base for homes and, more importantly, for the lenders. Booths belonging to Demerara Bank, Republic Bank and Guyana Bank for Trade and Industry (GBTI) were in full promotional operation when the Guyana Chronicle went on a walkabout Saturday at the International Building Expo.
Since its beginning last Friday, Demerara Bank slashed its interest rates and lengthened the required pay back period, staffers of that institution told this newspaper.
“The main reason we slashed our rates is to make it (borrowing) more affordable for everyone,” said Puran Mathura, a loans officer.

An upsurge
He said, from the time they reduced the rates and gave a longer repayment opportunity, there has been an upsurge in enquiries, particularly from junior employees in both the public and private sectors.
“It’s no longer just managers and supervisors seeking loans,” Mathura confirmed.
“We’ve reduced our rates below and matched the rates of our competitors,” he stated.
“For the opening two days, we’ve had more people come in than during the entire expo last year,” Mathura reported.
An attendant at the GBTI booth, speaking on condition of anonymity since she was not authorised to talk with the media, pointed out that her bank, too, had seen a greater number of teachers and police ranks, historically among the lower income earners in the public sector, seeking to borrow.
The commercial banks have gone head-to-head in trying to woo prospective house owners.
Since 2001, mortgage lending rates have tumbled by 45 percent and information provided to this newspaper showed that loans of up to $8M are offered at interest rates ranging from 4.25 to 6.15 percent at Republic Bank; 4.9 to 6.9 percent at GBTI and 4.5 to 7.5 percent at Demerara Bank.
Meanwhile, the New Building Society (NBS), recently, adjusted its interest rates from 4.25 to 6.25 percent and is now offering loans of up to $10M.
At the exposition, bank staffers disclosed having interviewed hundreds of prospective borrowers, with some actually applying.
The three-day exposition, staged for the fourth year, concluded Sunday evening at the Guyana National Stadium, Providence, East Bank Demerara.