Prime Minister Gaston Browne has called on commercial banks to expand mortgage lending and help more citizens achieve the dream of homeownership.
Speaking during the 2025 Budget Presentation, he highlighted the need for financial institutions to step up and provide greater access to financing, describing mortgages as one of the safest forms of credit.
“We want to make sure that every working person in this country can afford a mortgage,” the Prime Minister said, emphasizing the government’s commitment to creating opportunities for citizens to own homes.
To support this effort, the administration plans to collaborate with the State Insurance Corporation to offer mortgage indemnities, reducing risks for banks and lowering equity requirements for borrowers.
This appeal comes as the government continues its push to make homeownership more accessible amid significant economic growth.
The construction sector contributed $900 million to the economy in 2024, with a 14% increase in residential and commercial construction applications valued at $464 million.
The Prime Minister noted that this growth reflects rising confidence in the economy and the government’s sound policies.
Credit unions have also played a role in expanding access to mortgages, with nearly 60% of their increased lending in 2024 allocated to home financing.
The administration is encouraging both banks and credit unions to build on this momentum and prioritize homeownership lending as a means of empowering citizens and fostering national development.
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I agree!
HOPEFULLY, BROWNE WILL PUT MEASURES IN PLACE FOR THIS TO HAPPEN, OR WALLETS AND PURSES WILL CONTAIN DUST PARTICLES … 😁
Banks will hear but are not going to listen. The default rate on loans is high for one and the income of many who’ll apply for these loans may not qualify them.
Gaston Browne is trying to borrow money indirectly, to boost the economy. Ain’t nothing wrong with that, but when the banks plug the variables into the equation/statements, they MUST see a profit. Banks are not like the government, in the public sector, that has little to no transparency, actions (mishandling funds without serious consequences). The government cannot even remember, the last time, their books were balanced.
The Prime Minister as former banker should know that a reprocessed home is the most difficult thing to sell. Bank lose lots of assets this way. Look at properties previously owned by that Italian gangster with casino’s in Jolly Harbour and Divckenson Bay. The owener defaulted and the bank is saddled with an asset that they cannot sell. Look at the former once beautifull restaurant French Quarter at Runnaway by the Salt Pond. If it were not for Rob Barrett the same would have happened to Epicurean, when the onwer just fled the country to avoid being arrested. There are lots of delapidated homes all around the country which the bank has repoccessed but unfortunately cannot find a buyer for. yes many people want a home to live in, but they do not want a home as an asset to earn an income. Renting is one of the most combersome businesses to get into. All that happens is that you get back money to repay the mortgage and therefore you are building equity in the house. Maybe, just maybe the AirBnB will bring a change in this. The reason why banks mainly go ofr car loan is because second hand cars do sell faster. And sometimes people will go the extra mile to get back their car. The bank will then be able to liquidate the bad loan. we need to look more towards granting commercial loans. This will certainly help boost the economy. And I’m talking about small business loans. To ensure you spread the risk as much as possible. I always hate it when government get into the space where the private sector needs to be. I have made the suggestion before. It has been done in several European countries. Government want the bank the take risk, but the banks has to be prudent. Therefore it would be best if the government provide the bank with a guarantee for the loan. Of course there need to be some vetting as to who qualified for a government guaranteed loan. If we could have paid to safe the depositors monies of the ABI Bank, we can do the same thing by giving loan guiarantees under condition. You apply to the government for a loan guarantee and when approved you take it to your bank. And based on the amount the government guarantees you will be able to get the loan. If you over the years get into financial difficulties and cannot pay your mortgage the government steps in with their credit bureau and the bank writes of the loan against the government’s account. This can be settled in the payment of Incorporation taxes. Or a revolving government debt. Government will have to cash secure part of this guarantee funds. Therefore they need to place deposits at every bank. In gthe case of ECAB and CUB they can offset with their dividend at year end. The thing is the government does almost the same thing with State Insurance. And also with WIOC. In WIOC they call it subsidy of the oil prices. But it is the same, they pay the gas bill on our behalf with the offsetting of their dividend check and the Consumption Tax. It sound politically nice to brag that you have given so many millions in fuel subsidies, but in the end someone has to pay the bill. There is no free lunch. And that brings me to the Entrepreneurial Fund and the Prime Minister’s Scholarship Program. These things need to go through the banks and not by some burueacratic office. The office can take and process the application and when they approve it the applicant can take it to any bank for collecting. Now you have a department in the PM’s office preparing checks and with all the stresses of not having the funds available. Govenment should secure the account at each bank. And the bank will always have the cash to give to any successful candidate. This is how you use the money in the bank to start moving around. We have two billion in savings that is not part of the economic activity. It is dead money. As Finance Minister I would be very concern about that much cash just sitting in the bank not taking part of the economic activity. No loans, not mortgage, no bonds. No equity investment opportunities. Makes me wonder how much money people have stocked in safes in their homes, because they do not trust the banks.
Gaston Browne stop this policy of government getting into every space of business. Let the financial institution do what they do best. Lend out money.
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