By Marvin Cato | HGP Nightly News |
GEORGETOWN, GUYANA — In a major move to capitalize on Guyana’s unprecedented housing boom, Republic Bank (Guyana) Limited announced a sweeping overhaul of its mortgage products on Monday, February 16, 2026. Following the passage of the record-breaking 2026 National Budget, the bank has removed its lending ceiling for residential mortgages and introduced a competitive 5% interest rate for loans up to $60 million.
The shift reflects a broader trend in the Guyanese banking sector, as commercial institutions realign their services with the government’s aggressive national housing drive.
New Tiered Interest Rate Structure
The bank’s revised Low Cost Mortgage package is designed to provide tiered relief across all income brackets. By aligning with the government’s newly increased low-income mortgage ceiling, more citizens now qualify for preferential rates.
| Loan Amount | New Interest Rate |
| Up to $9 Million | 3.50% |
| Over $9M – $20 Million | 4.25% |
| Over $20M – $30 Million | 5.00% |
| Over $30M – $60 Million | 5.00% (New Offering) |
Key Feature: The bank has officially removed the “cap” or ceiling on residential mortgages, meaning customers can now negotiate financing for high-end residential properties beyond the $60 million mark under structured commercial terms.
Strategic Benefits for Homeowners
Republic Bank’s new policy includes several “unmatched” incentives aimed at making homeownership a reality for the average Guyanese family:
- 100% Financing: In many cases, the bank is offering to cover the full cost of construction or purchase, reducing the need for years of upfront saving.
- Extended Repayment: Loan terms are being extended up to 40 years (or age 70), significantly lowering the monthly amortized payment.
- Monthly Amortization: Interest is calculated on the reducing balance, ensuring that payments remain predictable and affordable over the life of the loan.
The “Budget 2026” Effect
The announcement follows the unveiling of the $1.558 Trillion Budget 2026, which allocated a staggering $159.1 billion to the housing and water sectors.
Government Measures Driving This Change:
- Ceiling Increase: The government increased the low-income mortgage ceiling from $20 million to $30 million, forcing commercial banks to lower their rates to remain competitive.
- Tax Relief: Budget 2026 removed VAT on locally made furniture (doors, beds, etc.) and building materials, further lowering the total cost of homeownership.
- Housing Targets: With a government target of 8,000 new homes in 2026 alone, banks are racing to secure a share of the massive influx of new title-holders.
“As Guyana’s housing landscape continues to expand, Republic Bank stands ready to deliver strategic, affordable and customer-centred solutions,” the bank stated.
