HGP Nightly News – The government’s decision to raise the ceiling on low-income mortgages to $30 million has opened an early fault line in the Budget 2026 debate, with APNU MP Sherod Duncan arguing that the move exposes the growing gap between housing policy rhetoric and the financial reality facing ordinary Guyanese.
While the Finance Minister framed the increase, up from $20 million, as an expansion of access to financing, Duncan contends the adjustment tells a different story. He said the higher cap is less about affordability and more about acknowledging how sharply construction costs have risen, without addressing why homes have become so expensive in the first place.
In practical terms, Duncan questioned whether a $30 million loan can credibly be described as “low income.” He noted that even under favourable lending terms, monthly repayments could reach roughly $150,000, a level he says would stretch or exceed the budgets of many teachers, public servants, security personnel, and other working-class families. In his assessment, raising the borrowing limit risks normalising higher debt rather than making housing genuinely more affordable.
Duncan also raised concerns about the government’s decision to include insurance companies in the mortgage programme. He suggested the shift may reflect growing caution among commercial banks, particularly when lending in housing schemes that lack complete infrastructure. Moving mortgages into insurance-backed financing, he warned, could place indirect risk on policyholders and pension contributors if defaults increase.
“This budget does not offer a housing solution for the working class,” Duncan said. “It offers a debt trap.”
He argued that a housing strategy built around people-first principles should focus on lowering construction costs, accelerating the delivery of serviced lots, and expanding access to completed homes, rather than encouraging households to take on increasingly large loans to keep pace with inflation.
As the National Assembly’s budget debate continues, Duncan signalled that housing policy will remain a central area of scrutiny, particularly whether government measures are easing pressure on families or quietly redefining what “affordable” means in an increasingly expensive market.
