Nedbank cuts mortgage rate

NEDBANK Namibia has taken the lead in the mortgage rate race by cutting its home loan rate to 11,5 per cent, the only commercial bank to pass on the full relief of the Bank of Namibia’s recent repo drop to consumers.

Bank Windhoek decreased its rate by 25 basis points to 12 per cent.
Standard Bank Namibia and FNB Namibia left their mortgage rates unchanged at 11,75 per cent and 12 per cent respectively.
Although it seems like healthy competition in the home loan market is finally taking root, the reality might be far less encouraging, analysts said.
Moving a home loan to a bank offering better rates is expensive and cumbersome. Moving an overdraft is much simpler.
When it comes to prime lending rates, Standard Bank Namibia still offers the best deal in town with a new rate of 11,25 per cent.
All four commercial banks dropped their prime by 50 basis points. The three other banks offer a prime rate of 11,5 per cent.
Bank Windhoek’s and FNB Namibia’s new lending rates became effective on Friday and yesterday respectively.
Standard Bank Namibia will implement its rate changes today, while Nedbank Namibia’s new rates are only valid from tomorrow.
Bank Windhoek and Standard Bank Namibia implemented their new rate structure within a day, while Nedbank Namibia’s adjustment will take two days.
FNB Namibia took the longest to implement changes. Their new rates were only effective after four days.
FNB Namibia and Bank Windhoek decreased their rates on Thursday, a week after BoN Governor Tom Alweendo lowered his repo from 7,5 per cent to seven per cent.
Both Nedbank Namibia and Standard Bank Namibia announced their rate decisions yesterday, 12 days after the BoN’s decrease became effective.
Asked why it took so long for banks to announce their rate policy this time around, Standard Bank Namibia Managing Director Mpumzi Pupuma said it is a ‘complex issue’.
Pupuma denied that Standard Bank South Africa has to approve the interest rate decisions taken by Standard Bank Namibia, as reported by The Namibian yesterday.
They do, however, have to consult their shareholder in South Africa, Pupuma confirmed.
jo-mare@namibian.com.na

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.