The GAB in a news release welcoming the increase noted that the government had recognized that the cost of building a low income house had gone beyond the ceiling of $3M set in July 2009.
In the meantime, the GAB observed that the successful opening up of several areas of the country for housing development by the government continues apace due to the strong demand for housing by the lower income segment of the population.
The government has therefore agreed to raise the ceiling for low income mortgage loans for those commercial banks that are approved mortgage lenders, the release said.
This means that persons qualifying for such loans will have greater access to mortgage financing nationwide up to $8M to build their homes at the low income mortgage rate offered only by the New Building Society up to this time.
The association lauded the government for this initiative which it acknowledged as reinforcing the administration’s commitment to affordable housing and to the contribution that housing development makes to national development.
“This is consistent with members’ policies and in keeping with our task of intermediation for the benefit of national development,” the local association of bankers stated.
Meanwhile, at a meeting with President Bharrat Jagdeo, Minister of Finance Dr Ashni Singh and Minister of Housing Irfaan Ali, the association was informed of the raising of the ceiling and had frank discussions with the government on its role in support of the housing drive, the release concluded.
