President Irfaan Ali has announced that the Government has doubled the ceiling on mortgage interest tax relief for home owners, declaring that persons can now deduct all interests paid on their mortgages from their taxable income.

Speaking at the opening of the International Building Expo, the President said the move is intended to put more money in the pocket of homeowners.

“It means that the government is sharing the cost of your mortgage with you, we are not just giving you access to loans, we are making the government your government your partner in building your home. Every year, when you file your taxes, the interest you pay on your home loan comes back to you, directly, reducing the tax you owe, increasing your disposable income and putting more money back into your pocket,” the President said.

He described the tax break as an annual dividend to persons who decide to invest in themselves, their family and country.

“The government has doubled the ceiling on mortgage interest tax relief for first time home owners under Section 28 of the Income Tax Act, if you are a first-time home owner living in your own property, you can now deduct from your taxable income, the full interest on mortgage principals up to $30m,” the President said.

Additionally, it was also announced that the Government has been working with banking institutions to ensure favourable interest rates for aspiring home owners as another cost saving mechanism.

“We are doing this because we view home ownership as not just an economic transaction but a statement of belonging, when a family in Guyana owns a home, when their names are on that title, deed or transport and when their children grow up, when they are building equity rather than paying rent—security and aspirations changes, the relationship between citizens and nation changes,” the President noted.

The President said with all interventions by the government there is now growing interest by persons to own their own homes.

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