MOTIVATED by the massive housing developments ongoing across the country, the New Building Society Limited (NBS), on Wednesday, announced a reduction of its interest rates for mortgages, and the opening up of four new branches across the country to cater for the upsurge.

For loans from $1 million to $4 million, the interest rate has been reduced from four per cent to 3.50 per cent, while for loans above $4 million and up to $9 million, the interest rate has been reduced from 5.95 per cent to 3.75 per cent.

Additionally, for loans above $9 million and up to $20 million, the interest rate has been reduced from 5.95 per cent to 5.70 per cent. The reduced rates will take effect from September 1.

“We have given the commitment to the government to release a substantial sum of our cash resources, of approximately $20 billion, for housing development in our country.

“And we are willing to participate in the furtherance of aggressive housing drives which we have seen the government has embarked upon,” NBS Chairman Nanda Gopaul said in the announcement during a press media conference at the institution’s North Road, Georgetown headquarters.

Gopaul was joined by a number of the banks executives during the media engagement, including Vice Chairperson, Leila Ramson; Directors Floyd McDonald, and Kalyan Tiwari; Chief Executive Officer, Anil Kishun; and Deputy Chief Executive Officer, Anil Beharry.

The new rates will apply to new and existing mortgagors. With this, some 9,634 of the institution’s existing customers stand to benefit from approximately $210 million in reduction in their instalments for 2022. The reduction will continue for the duration of their existing loans.

The financial institution has also made changes to its approval criteria to better enable persons to get approval.

These measures include the need for borrowers to no longer have to bring estimates for their loans, and the filing of necessary documents at the Deeds Registry and other government agencies to be completed within 48 hours.

The Society will also no longer be stipulating that persons must have a certain amount of money at the commencement of the construction phase.

“The Society wants to make housing loans not only affordable but also easily accessible to every Guyanese holder of house lots.

“So, they need not hesitate or have any fear over repayment affordability, since the repayment in most instances is cheaper than having to rent properties.

“In these circumstances, therefore, we urge all Guyanese who are owners of vacant lots with titles or transport to visit any of our offices to be facilitated with a mortgage with ease,” Gopaul urged.

The new branches for the financial institution will be in Region Nine (Upper Takutu-Upper Essequibo), and on the East Bank, East Coast and West Coast of Demerara.

According to Gopaul, the lands have already been identified for the site of the new offices.

“The President, Dr. Mohamed Irfaan Ali has approved of lands for the construction of the branch offices,” Gopaul noted.

The new branches will add to the existing seven offices that the institution has across the country, which includes offices in New Amsterdam, Rosignol, Corriverton, and Rose Hall in Region Six (East Berbice-Corentyne), in Linden, Region 10 (Upper Demerara-Upper Berbice), and in Henrietta, Region Two (Pomeroon-Supenaam).

Gopaul noted that NBS is heartened by the housing drive and the many measures that the government has been providing to assist financial institutions to better position themselves to be a partner in the government’s development plan for housing.

Measures implemented by the government includes the increasing of the mortgage ceiling from $15 million to $20 million, and the progressive initiative whereby the government will be providing all of the steel and some amount of cement for the foundation aspect of the construction phase for any home builder.

“The Society believes this is a golden opportunity that persons, who are holders of government house lots around the country, should take immediate steps to cash in on the NBS’s concessionary loan approvals at this point in our country’s history,” Gopaul said.

The bank has already been catering to an increased intake.

During his remarks, Gopaul also related that of the nearly 500 persons who we prequalified for loans during activities that the Society held at the Building Expo in July, some 302 persons have since had their loans processed, while the remainder are working towards gathering the necessary documents and requirements to commence processing their loans.

Providing mortgage and savings products, NBS was established in 1940 replacing the British Guiana Building Society. The institution was established under and is governed by the New Building Society Act Chapter 36:21 of the Laws of Guyana.