NHE offers loans to its customers as per the mandate of the Government of the Republic of Namibia, set out in the NHE Act 5 of 1993 and Act 32 of 2000 as amended. The loans are to be used for the purpose of providing for the housing needs of the inhabitants of Namibia. Loans will be extended to all inhabitants of Namibia who apply for such housing and other loans and who meet the qualifying income limit as laid down by the Credit Committee from time to time. Applicants who already own houses, as well as corporate institutions (e.g. companies, close corporations, trusts etc.), will not be considered for an NHE housing loan.
The maximum income limit of N$ 20,000 per month (gross salary including housing allowances and subsidies) will be used as a threshold for qualifying for an NHE property. That is, if an applicant has a monthly gross salary of more than N$ 20 000, then he/she will not be allowed to purchase an NHE property. For a joint monthly income, a total of N$ 30,000 will be the threshold as the maximum limit for applicants.
The maximum total loan to be considered per customer is N$ 600,000 for all loans. However the maximum total loan per customer to be considered for study purpose (NHE study loan) is N$20 000 and will become part of the home loan of a customer. The study loan will not cause the overall home loan to exceed the set limit of N$600 000.
NHE will finance up to 100% of the purchase price of the house, plus transfer fees, bond costs and other loan related costs if required, provided that the applicant is part of a housing scheme and the employer guarantees part of the loan (e.g. Government employees).
A Total Loan to Valuation (LTV) of 100% (inclusive of all costs, i.e. transfer fees, bond cost and any other costs – including rates & taxes) will be applicable in order to ensure that customers purchasing properties with purchase prices equal to the valuation values, will still qualify for these loans. Deserving cases in excess of 100% LTV must be motivated to the Credit Committee for approval.
The affordability level of the applicant, i.e. 20% repayment to income (and 25% for customers with housing schemes), must in all cases be observed. The applicable retirement age at last payment at the end of the loan period should always be taken into consideration. In line with the retirement age used by the Government of the Republic of Namibia, this policy uses 60 (sixty) years as the retirement age.
This is a loan given to existing clients of NHE who now want to extend their houses. Clients can go to the nearest Regional Office of NHE to apply for NHE Home Improvement Loan.
Excess Loan is a loan given to existing clients of NHE who have owned the NHE properties for a certain period of time. The client can borrow money from NHE up to the maximum of N$20,000. This money can be used to pay for school fees, municipal services such as rates & taxes, water & electricity, tuition fees, minor renovations to a property such as tiling, painting etc. The Excess Loan amount to be paid is the difference between the financed amount and the outstanding balance. No second bond registration is needed for the Excees Loan application.
How do I know that I do qualify for NHE Excess Loan?