A government programme to help residents become homeowners has come through with “real relief”, the Premier said yesterday.

David Burt also told the House of Assembly that 74 Bermudians were either closing their mortgages or receiving approvals under the mortgage guarantee programme.

The scheme was launched in October 2022, with first-time mortgages guaranteed partially for up to a decade by the Government, interest rates as low as 5 per cent and down payments halved to 10 per cent.

Mr Burt said that three had taken advantage of refinancing opportunities under the programme.

He added: “If you are a first-time homebuyer, if you are looking to apply, please contact the Bermuda Commercial Bank; find out if the mortgage guarantee programme can work for you.”

The Premier noted that the Ministry of Finance got a monthly report on the effects of the guarantees.

He said: “Out of all of the mortgages that have been issued to persons, there is not a single Bermudian who is delayed or late on their payments.

“That means that this project is working.”

The Reverend Emily Gail Dill, a government MP, questioned the Premier on steps to increase competition in the banking sector and moves to make mortgage transfers easier for Bermudians.

Mr Burt said: “One of the biggest frustrations that are expressed by Bermudians is the lack of choice in banking and often the high cost in borrowing, especially when it comes to mortgages.”

He said that the Government implemented a measure to eliminate stamp duty on the transferring of mortgages to ensure “greater competition” in domestic banking.

He said: “What we have seen is the response certainly from the banks on that and we have seen that competition taking place.”

The Premier urged residents: “I would encourage anyone who is carrying a high mortgage rate to go to your bank and ask for a lower rate.

“And if they are not prepared to do it, tell them that you are prepared to switch.”

He added: “We have heard many stories where persons have gone to their bank, their bank has said no, and they’ve gone to another bank, that bank has said yes.”

He said that in end the rate was dropped when the residents revisited their banks.

Mr Burt added: “We are doing the work on our side.

“But it is important that honourable members let their constituents know how they can be assisted through the law changes that we have made here to get lower mortgage rates.”

The Premier said that although the elimination of stamp duty had a positive impact, the Government wanted to see it become more effective.

He pointed out that one commercial bank had undertaken a campaign to woo residents to transfer over their mortgages.

He said: “I would encourage consumers to know that they have the ability to shop around. There are options for consumers.”