Demerara Bank Limited has increased its maximum residential mortgage facility from $30 million to $40 million, while keeping its top interest rate unchanged at 5% per year. The new lending threshold took effect on 9 February.
Under the revised policy, customers can now access financing of up to $40 million at 5% per annum, calculated on a reducing balance. The bank noted that it is currently the only commercial banking institution in Guyana offering housing loans at that rate up to the newly established ceiling.
The updated structure continues to operate on a graduated interest system. Borrowings up to $4 million will attract an interest rate of 3.5 per cent per annum. Loans between $4,000,001 and $9 million will carry a 3.7 per cent rate. Amounts from $9,000,001 to $15 million will be subject to 4.5 per cent, while sums ranging from $15,000,001 to $40 million will be subject to 5 per cent.
According to the bank, the revision reflects rising expenses in the housing and construction industry. Escalating prices for building materials, labour, and contractor services have pushed overall project costs higher in recent years, making it harder for individuals to build or purchase homes within previous financing limits.
The institution explained that increasing the loan cap is intended to better reflect prevailing market realities and provide borrowers with access to funding that aligns with today’s construction and property values. It emphasised that as housing costs continue to climb, credit access should adapt accordingly rather than become more constrained.
By preserving its existing rate structure while allowing customers to borrow larger amounts, the bank aims to ease financial pressures on prospective homeowners seeking to build, complete, or acquire residential properties. It reaffirmed that owning a home remains a key aspiration for many families, symbolising financial stability and long-term security.
Demerara Bank further stated that the policy adjustment forms part of its broader commitment to economic growth and inclusive financial access. The bank underscored its intention to continually refine lending practices in response to evolving conditions, while supporting citizens at key life milestones, such as homeownership.