The Bank of Namibia (BoN) has released amended regulations on loan-to-value ratios to stimulate property investment and support economic recovery.
Under the new regulations, the loan-to-value (LTV) ratios for additional property purchases have been further relaxed.
Borrowers seeking a mortgage loan for a second residential property will no longer need to provide a deposit.
For third and subsequent residential properties, a 10% deposit is now required.
The new regulations, which came into effect last month, relax the restrictions on LTV ratios for purchasing multiple residential properties through mortgage bonds.
The LTV ratio represents the amount of money lent by a banking institution to a borrower for purchasing a property in relation to the property’s price or valuation, along with the required deposit.
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