THE New Building Society Limited (NBS) recently refuted accusations by Opposition Parliamentarian Annette Ferguson that President, Dr Mohamed Irfaan Ali’s announcement of an increased mortgage ceiling from $20 million to $30 million was a political stunt prior to planned elections.

Her comments which appeared in the Stabroek News not only mischaracterised the nature of the announcement, but actually muddied the very extensive deliberation and preparation that has preceded this significant financial policy change.

The suggestion that this news constitutes a campaign ploy rather than a careful economic calculation is due for full examination and refutation.

Contrary to Ferguson’s allegations, increasing the ceiling on mortgage has been on the agenda for nearly a year now, as revealed by documents. NBS officials have convened a series of meaningful meetings with President Ali and the Minister of Finance to discuss this in particular.

The Society’s 85th Annual General Meeting report even included official correspondence detailing the rationale for raising the ceiling to $35 million from $20 million, showing that this was not a thoughtless move nor an impulsive political stunt.

These exchanges are based on NBS’s proven record of adopting borrower-friendly policies. In 2022, the Society significantly lowered interest rates to as low as 3.5 percent for smaller loans and 5.7 percent for bigger mortgages, a decision that has brought considerable financial relief to thousands of Guyanese homeowners.

This history of increasing fiscal policy strongly contradicts the idea that lifting the ceiling is an election-driven deviation from normal business practice.

Lifting the ceiling to a $30 million mortgage is a huge chance for young professionals and middle-class Guyanese to get access to the finance needed to acquire quality housing in an up-and-coming property market.

This policy revision acknowledges Guyana’s increasing housing market, with prices for building and property costs naturally rising in direct correlation with the economic development of the country.
By this adjustment, NBS is simply bringing its policies up to date relative to actual housing market conditions that exist for current and future homeowners.

As a mutual organisation, NBS operates on the philosophy of “profit sufficiency rather than profit maximisation,” a critical differentiation that guides its entire financial services approach.

The Society maintains earnings reserves of 20 percent of assets, far above the capacity to effortlessly absorb this higher mortgage limit without compromising financial health. These are the values of a prudent financial institution, not the mathematics of a political apparatus.

The record of the Society testifies to its commitment towards fostering homeownership across Guyana. Borrowers have availed themselves of a cumulative total of over 300 million dollars in rebates annually, since the lowering of interest rates in 2022.

This substantial financial benefit coupled with the favourable 2.75 percent interest on savings accounts is testimony to NBS’s fair-playing approach towards serving borrowers as well as savers.

These are cautious moves grounded in sound management of money due to good economic conditions in Guyana and not political calendar matters.

It should be said that the NBS initially requested such an appeal for the mortgage ceiling to be raised to $35 million as far back as June 2024, finally accepting the level of $30 million proposed by the government.

This multi-month negotiation process defies any speculation of this being a hasty pre-election declaration. The agreement maintained existing interest rate structures, so this ceiling increase would not be a cost burden to borrowers.

President Ali’s decision to make this announcement at the Labour Brunch must be viewed in its correct context. These events naturally are platforms to herald economic and social progress for workers and citizens.

The report of increased access to home funding is obviously in this category. Rather than grabbing powers from the NBS, the President was only reporting a positive result of ongoing discussions between government and the Society.

The mortgage ceiling increase is sound fiscal policymaking and not political opportunism. The documented timing of discussion, NBS’s consistent record of borrower-focused policies, and the clear-cut economic rationale of the move all go to make up a real financial policy transformation and not campaign tacticism.

By focusing on unsubstantiated political agendas rather than the tangible benefits that this policy has to offer citizens in Guyana, critics miss the important impact this adjustment will have on home ownership across the country.

As Guyana intensifies its economic transformation, its policies must be revised to adjust to new realities, and the increased mortgage limit is just one of them.