The Bankers Association of Namibia (BAN) welcomes the ongoing public discussion on home ownership and housing finance, noting that it raises important questions around affordability, access, and the structure of home loans in Namibia. BAN emphasises that mortgage terms are primarily structured to balance affordability with access.
While a home loan can be repaid over a shorter period, such as five years, this would require significantly higher monthly repayments—placing home ownership out of reach for most households. For example, a N$2 million home loan repaid over five years would require monthly repayments of approximately N$44,000. Extending the term to 20 years reduces the monthly repayment to around N$21,000, making ownership more attainable for a broader segment of the population.
The key consideration is therefore affordability, rather than the asset itself. Shorter repayment periods reduce the total interest paid over the life of a loan but result in substantially higher monthly instalments. Longer terms increase total interest costs but enable more Namibians to enter the property market. Importantly, consumers retain flexibility to reduce interest costs by making additional payments, increasing instalments, or settling loans earlier. BAN also notes that lending structures differ across asset classes. Vehicle finance is typically shorterterm due to depreciation, whereas property is a long-term asset that may retain or increase in value and plays an important role in household wealth creation.
The association recognises that many Namibians—particularly younger households—face significant barriers to entering the property market, including high property prices, deposit requirements, affordability constraints, and broader economic pressures. Responsible lending remains a cornerstone of the banking sector. Financial institutions are required to assess income, existing debt, and overall affordability to ensure that borrowers can sustainably meet their obligations. BAN stresses that the broader national challenge extends beyond repayment periods alone. Increasing access to sustainable home ownership will require a coordinated focus on housing supply, land availability, construction costs, income growth, and overall affordability.
“This is an important national conversation. By improving financial literacy and strengthening collaboration between government, regulators and the private sector, we can expand access to housing and enable more Namibians to achieve home ownership,” said Dantagos Jimmy, Chief Executive Officer of the Bankers Association of Namibia. BAN welcomes continued engagement with government, regulators, and other stakeholders to identify practical solutions that enhance access to housing finance while maintaining responsible lending standards. The association remains committed to advancing financial inclusion and supporting sustainable, long-term home ownership in Namibia.