First-time homeowners can now deduct the full interest paid on their home loans from their taxable income, after the government doubled the relief ceiling under Section 28 of the Income Tax Act, President Dr Mohamed Irfaan Ali announced on Thursday at the opening of the International Building Expo at the Guyana National Stadium in Providence.
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 Dr Ali.
He said the relief would return money to homeowners each year.
The president said, “Every year when you file your taxes, the interest you paid on your home loan comes back to you directly, reducing the tax you owe, increasing your disposable income, and putting more money back in your pocket.”
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.
He also committed to clearing the backlog of land titles at a faster pace. The government processed 30,000 titles between 2020 and 2026, with just over 20,000 still outstanding.
“What we took five years to process, we will not take a single year,” he said, while urging allottees to complete their end of the transaction so titles already prepared can be delivered.
President Ali said a full housing development strategy would be outlined 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.
He pointed 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 in attendance.