In a major step towards improving access to affordable housing, the Government of Namibia has officially endorsed the implementation of the Pension-Backed Home Loan (PBHL) scheme, a new housing initiative targeted at civil servants.
The announcement was made by the Ministry of Finance in collaboration with the Namibia Financial Institutions Supervisory Authority (NAMFISA) and the Government Institutions Pension Fund (GIPF), with oversight from the Office of the Prime Minister.
The PBHL scheme is designed to enable civil servants particularly those unable to qualify for traditional bank loans to use a portion of their pension savings as collateral for home loans. This move aligns with government efforts to address the persistent housing challenges faced by many public sector employees.
The facility will allow GIPF members in both proclaimed and unproclaimed areas to use their pension savings to:
Purchase residential property or land intended for housing, Construct or renovate a dwelling, Settle existing home loans, or Improve basic housing conditions.
The initiative is grounded in the provisions of the Pension Funds Act of 1956 (as amended), which permits pension funds to offer loans for housing purposes to members in both proclaimed and unproclaimed areas.
Final administrative preparations are currently underway between the Government, GIPF, and payroll systems to ensure a smooth rollout. Civil servants can expect detailed communication from GIPF and their respective ministries regarding eligibility criteria, terms, and the application process.
This development represents a significant milestone in the government’s commitment to providing decent and affordable housing for all, starting with those in the public service.
