Call for review of pension-backed home loans
Swapo Party member John Likando has called for a review of the regulatory and administrative framework governing the Government Institutions Pension Fund (GIPF) pension-backed home loan scheme, citing barriers that continue to hinder eligible members from accessing affordable housing, citing challenges that continue to prevent eligible members from accessing affordable housing. The concerns were raised in a proposed parliamentary motion highlighting difficulties faced by civil servants, young professionals, low-income earners and members living in rural and communal areas.
"I took note that certain requirements under FIMA Act of 2021, particularly the first mortgage bond requirement, may disadvantage members who are residing in a communal area" he said. The proposed motion calls on government, in consultation with GIPF, the Namibia Financial Institutions Supervisory Authority (NAMFISA) and other relevant stakeholders, to review the regulatory framework and explore lawful alternatives to the first mortgage bond requirement for eligible members living on communal land. "We need to balance the improve access to housing and protection of long-term sustainability of the GIPF funds" said Likando.
It also proposes simplifying land verification, documentation, mapping and property valuation processes, particularly in rural communities. Furthermore, he called for a review of loan limits and affordability requirements to improve access to the scheme. It further calls on the relevant parliamentary standing committee to adopt a coordinated, transparent and member-centred approach.
