First-time homeowners can now deduct the full interest paid on their home loans from their taxable income, after the government yesterday announced the doubling of the relief ceiling under Section 28 of the Income Tax Act.
The Department of Public Information (DPI) said that President Irfaan Ali made the announcement at the opening of the International Building Expo at the Guyana National Stadium in Providence last evening.
The ceiling now covers mortgages of up to $30 million, up from the previous limit.
“What does this mean in practice? It means the government is sharing the cost of your mortgage with you,” President Ali said. “We’re not just giving you access to a loan. We are making the government your partner in building your home,” according to the President
DPI said that the head of state framed the measure as part of a wider housing push that has driven applications in the system to 81,000. Of those, 67,000 are new applicants who entered since 2020, with an average age of about 23.
President Ali said a full housing development strategy would be unveiled in the coming weeks, aimed at reducing the backlog to zero within four years and targeting vulnerable groups, including persons living with disabilities, single parents, and those facing extreme vulnerability.
DPI said that he adverted to falling mortgage rates across the commercial banks and the New Building Society, with some institutions now offering rates from 3.5 percent and 100 percent construction financing.
The Expo, which drew more than 500 exhibitors, also featured a regional dimension, with Jamaican Prime Minister, Dr Andrew Holness present.
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