NASSAU, BAHAMAS — Total mortgage disbursements for new construction and repairs increased by 51.2 percent ($10.4 million) in the second quarter to $30.7 million, building on the 19.1 percent growth a year earlier according to the Central Bank.
The Central Bank, in its Quarterly Economic Review, noted that residential disbursements rose by 9.0 percent ($1.8 million) to $22.1 million, following a 26.9 percent increase in the prior year. The commercial segment also saw a significant increase, reaching $8.6 million, up from a modest $0.04 million in 2023.
“Total mortgage commitments for new buildings and repairs—a forward-looking indicator of domestic activity—grew from 32 to 96 compared to the same period last year, with the associated value expanding by 49.8 percent to $29.1 million. Broken down by loan type, the number of undisbursed residential commitments increased by 24 to 88, with their value rising by $1.0 million (4.9 percent) to $20.4 million. Additionally, commercial commitments for new construction and repairs totaled 8, with a value of $8.7 million, compared to no commitments in the same period of 2023,” the regulator noted.
Data from domestic banks, insurance companies, and the Bahamas Mortgage Corporation showed that the total value of outstanding mortgages rose by $11.2 million (0.4 percent) to $2,877.1 million during the second quarter, reversing the $8.4 million (0.3 percent) decline in the same period of 2023. The residential component, which comprised 93.3 percent of total mortgages, grew slightly by $1.9 million (0.1 percent), recovering from a $2.5 million (0.1 percent) decrease a year earlier, and ended at $2,684.4 million.
The commercial component increased by $9.3 million (5.0 percent), reversing a $5.9 million (2.9 percent) reduction from the previous year. As of the end of June, domestic banks held the largest share of outstanding mortgages (86.5 percent), followed by the Bahamas Mortgage Corporation (7.1 percent) and insurance companies (6.4 percent).
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