The Minister of Finance and Public Enterprises, through the Bank of Namibia, has made new regulations to make it easier to buy multiple homes using loans.
These new amendments came into effect on 31 October 2023 and replace the old restrictions on Loan-to-Value (LTV) ratios in 2019.
This was revealed by Bank of Namibia spokesperson Kazembire Zemburuka yesterday.
“A mortgage loan for a second residential property no longer requires any deposit, while mortgage loans for third and subsequent residential properties only require a 10% deposit,” said Zemburuka.
LTV represents the amount of money a bank lends to consumers to buy a house compared to the house’s price, and it includes the required down payment.
Zemburuka said the changes were motivated by economic conditions and the shift in the Namibian property market.
He encouraged banks to make policy changes.
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