HGP Nightly News – First-time homeowners are set to get a major boost, with President Irfaan Ali announcing that they will now be able to deduct the full amount of interest paid on mortgages of up to $30 million from their taxable income.
The announcement was made on Thursday night as the President officially opened the International Building Expo 2026 at the Providence National Stadium, where hundreds gathered for the event.
Ali described the measure as a practical way of helping Guyanese families carry the cost of owning a home.
“The government has doubled the ceiling and mortgage interest tax relief for first-time homeowners under Section 28 of the Income Tax Act,” he said.
He explained that first-time homeowners living in their own property can now deduct from their taxable income the full interest paid on mortgage principal up to $30 million.
“What does this mean in practice? It means the government is sharing the cost of your mortgage with you,” the President said.
Ali said the move forms part of wider reforms in the housing and mortgage sector since the PPP/C returned to office in 2020. He noted that the New Building Society mortgage ceiling, which stood at $8 million when the government took office, has since been increased significantly.
“We’re not just giving you access to loans; we are making the government your partner in building your home,” he said.
The President also pointed to changes across the banking sector, saying commercial banks have reduced mortgage rates and expanded access to larger loans. He said this reflects confidence in the economy and the direction of the housing market.
“The power of a competitive financial system is when a government moves, the market follows,” he said, adding that the market has moved “with extraordinary speed.”
Among the changes highlighted were Republic Bank removing its residential mortgage ceiling and offering loans of up to $60 million at five per cent, with rates starting as low as 3.5 per cent. GBTI has also restructured its mortgage portfolio, with standard rates beginning at three per cent from May 1.
Citizens Bank has introduced mortgage rates from 3.5 per cent over a 35-year term, along with 100 per cent construction financing, no 25 per cent upfront contribution, and no commitment or processing fees.
According to Ali, similar reductions have been made by Demerara Bank and Scotiabank. He said mortgage rates, which were between eight and 15 per cent five years ago, have been brought down sharply across the system.
The President said the government sees home ownership as more than a financial transaction. He described it as a foundation for security, stability, and belonging.
“When a family in Guyana owns their home, when their name is on that title, deed, or transport, when their children grow up with a backyard and a bedroom of their own, when they are building equity rather than paying rent, something changes,” he said.
Ali also reported a sharp rise in housing demand since 2020, saying applications have grown by about 60,000 during that period. He linked the increase to public confidence in the government’s ability to deliver house lots and homes.
The President said there are now about 81,000 applications in the housing system, with 67,000 of them originating from 2020 onwards. He noted that the average age of new applicants is just over 23, which he said shows growing interest among young people in owning their own homes.
