NASSAU, BAHAMAS — Mortgage commitments for new construction and repairs in The Bahamas rose sharply in the fourth quarter of 2025, increasing 73.6 percent to $74.1 million, according to the latest Quarterly Economic Reviewreleased by the Central Bank of The Bahamas.
The report noted that total mortgage commitments—a key forward-looking indicator of domestic economic activity—also increased in volume, rising by 13 approvals to 97, compared with the same period in 2024.
Residential lending activity strengthened during the period, with the number of undisbursed approvals for residential commitments for new buildings and repairs increasing by 16 to 92. The value of those approvals also climbed 21.2 percent to $20.6 million.
Commercial commitments, however, declined in number but rose significantly in value. The Central Bank said approvals for commercial commitments fell by three to five, though the associated value more than doubled to $53.5 million, up from $25.7 million in the same period last year.
Elsewhere in the credit market, commercial loan disbursements increased by 20.7 percent, or $2.6 million, to $15.1 million, following a more than five-fold expansion recorded in the previous year.
Another category of lending rose 6.3 percent, or $1.8 million, to $31.0 million, extending a 4.6 percent gain posted during the same period in 2024.
The Central Bank also reported a slight easing in borrowing costs for homebuyers. Average financing costs for residential mortgages fell by 20 basis points to 6.0 percent compared with the fourth quarter of 2024, while the average interest rate on commercial loan disbursements remained unchanged at 6.6 percent.
