Mortgage lending rates for low-income borrowers have fallen by more than half since 2020, driven by an expanded housing programme and stronger cooperation with financial institutions, Housing Minister Collin Croal said on Friday.
Speaking at the Ministry of Housing “Dream Realised” Housing Drive in Region Five, Croal said the decline in interest rates and higher borrowing ceilings have significantly expanded access to homeownership.
According to the minister, when the current administration took office in 2020, low-income mortgage lending rates averaged around six per cent. He said those rates now average just over three per cent.
“Now, on the low income, they have increased the ceiling — many of the banks. Previously, low income was up to about $6 million or $10 million, but now that bracket goes all the way up to $20 million and 20-plus million dollars,” Croal explained.
He said lower lending rates, combined with higher borrowing ceilings, have enabled more families to access larger loans and move closer to homeownership.
“Now, on average, your monthly mortgage lending rate for the low income is three-plus per cent, close to half of what it was when we came into office. Within the last five years, it has come down significantly.
When you want to talk about success stories and prudent leadership, I want to recognise President Ali in leading this effort because the banks and lending agencies have recognised what we are doing as a government and, more importantly, what we are doing in the housing programme.
That therefore means that if you bring down the lending rate, persons will be able to borrow more,” Croal added.
The government has been expanding its housing programme through the allocation of house lots, infrastructure development and partnerships with financial institutions aimed at making homeownership more affordable for citizens.
