By INDERIA SAUNDERS, Guardian Business Desk

Government's move to eliminate the stamp tax attached to transferring an existing mortgage from one lender to another appears not to be drumming up the kind of interest many anticipated

"In terms of persons wanting to move mortgages as a result of the removal of the stamp tax, we have not seen any changes directly attributed to this," Royal Bank of Canada said in a statement sent to Guardian Business yesterday.

It's commentary echoed at Bank of the Bahamas, its managing director telling Guardian Business much the same and suggesting uncertainty in the economy is what's on everyone's minds.

Still, analysts argue this is the best environment for Bahamians seeking good deals and better interest rates, when the stamp tax change finally clears the last of any legislative hurdles that may still be in its way, specifically gazetting.

Last May, the government voiced a commitment to remove all or some of the stamp taxes applied to closing out an existing mortgage, what's called stamping it "satisfied" and opening up a new one on the same property.

Many banks are now waiving penalties attached to mortgage swapping - usually 90 days of interest some banks charge borrowers who come without giving three months notice. Some just levy a one-percent penalty, which is often waived or reduced.

Still, as McWeeney sees it, there won't be much activity on the mortgage swapping front as long as the economy remains in a tough spot, with job security shaky and the number-one industry, tourism, unable to maintain the kind of visitor growth of only two and three years ago. Many homeowners may have suffered hits to their incomes that would dissuade banks from offering them replacement mortgages at this juncture.

They are comments State Minister for Finance Zhivargo Laing agrees with, asserting international global economic uncertainty has affected our own national economic outlook.

"So it would not be surprising that people are waiting perhaps to see where the economy is heading before determining how best to approach the issue of taking on a mortgage or mortgage consolidation attached to home acquisition or construction," he said. "There is (also) the question of timing.

"The summer is usually a time when people focus on vacation, back to school and the like. They do not tend to focus on big ticket items such as house construction or acquisition at this time."

Still, there remains that fraction of the Bahamian population with the financial wherewithal to take advantage of the stamp tax removal and the tens of thousands of dollars in savings to be had, possibly, in securing a small interest rate at another institution. Often the threat of transferring is enough to force an existing lender to lower its rates in order to retain that account.

For those lucky few, the government is looking to get rid of the one-percent tax on the value of the replacement mortgage being taken out.

All told, It means that for a homeowner switching over his $200,000 mortgage, for example, she could save about $2,200 in government taxes.

Laing argues the program is too much in its early stages to draw a concrete conclusion on its success.

"It would be better to allow a few more months to see how people respond, bearing in mind that much depends on the outlook of the global and national economic picture," he said.