Namibia: New mortgage regulations expected by early 2014
New measures regulating mortgage lending are likely to be implemented in Namibia by early next year, according to the Bank of Namibia's governor.New measures regulating mortgage lending are likely to be implemented in Namibia by early next year, according to
Bank of Namibia's governor.
Ipumbu Shiimi told The Economist on Wednesday (23 October) that a process is already underway to assess the possibility of increasing the loan to value ratios for mortgage lending, as part of measures to control credit growth extended to the private sector, which increased by N402.2 million (€29.7 million) in August to reach N55.8 billion.
"We are busy with an assessment right now which could look into introducing a large deposit requirement before you get a mortgage (…) and whether we should apply it to your first mortgage or to your second mortgage," said the governor.
This announcement comes
two of the country's four commercial banks recently announced the introduction of a zero percent deposit on home loans, which is likely to accelerate growth in Private Sector Credit Extension.