Cut home loans - AR
The Affirmative Repositioning movement has called on finance minister Calle Schlettwein to cap interest on home loans and to drop the term to 10 years.
Affirmative Repositioning is calling for changes to the financing structures of home loans, saying it excludes the poor from owning property.
The AR made the call following proposed changes to the Usury Act by finance minister Calle Schlettwein recently.
The youthful firebrands suggested a maximum cap on interest charged and a sharp reduction in the 20-year mortgage bond terms.
“Interest charged in any lending transaction in respect of fixed property or house financing shall not be more than 1% above the repo rate as determined from time to time and [that] any term of repayment on a money-lending transaction in respect of fixed immovable property or housing financing shall not exceed a period of more than 10 years,” the movement proposed.
Justifying their call for a review, AR said that interest rates charged were not regulated, thus giving commercial banks carte blanche to do as they pleased. “As we have been at the forefront of ensuring that houses become affordable, we have done research and have concluded that both interest charged in respect of housing finance in Namibia and in terms of home loans are not regulated,” said AR.
The movement also welcomed changes to the Usury Act also saying the development would help protect the poor. “We applaud such developments as they are aimed at protecting the very vulnerable members of our society and it is through such interventions that our society will forge ahead without abuse and exploitation of our people,” said the AR.
“We sincerely hope that you will be able to heed our submission, for it will mean a lot for to the future generations in this quest to search for a direction and impetus in the fight for economic freedom and more so to restore the dignity of our people,” added the AR.
The movement has given Schlettwein three weeks to respond to their suggestion upon which they will follow-up.
STAFF REPORTER
The AR made the call following proposed changes to the Usury Act by finance minister Calle Schlettwein recently.
The youthful firebrands suggested a maximum cap on interest charged and a sharp reduction in the 20-year mortgage bond terms.
“Interest charged in any lending transaction in respect of fixed property or house financing shall not be more than 1% above the repo rate as determined from time to time and [that] any term of repayment on a money-lending transaction in respect of fixed immovable property or housing financing shall not exceed a period of more than 10 years,” the movement proposed.
Justifying their call for a review, AR said that interest rates charged were not regulated, thus giving commercial banks carte blanche to do as they pleased. “As we have been at the forefront of ensuring that houses become affordable, we have done research and have concluded that both interest charged in respect of housing finance in Namibia and in terms of home loans are not regulated,” said AR.
The movement also welcomed changes to the Usury Act also saying the development would help protect the poor. “We applaud such developments as they are aimed at protecting the very vulnerable members of our society and it is through such interventions that our society will forge ahead without abuse and exploitation of our people,” said the AR.
“We sincerely hope that you will be able to heed our submission, for it will mean a lot for to the future generations in this quest to search for a direction and impetus in the fight for economic freedom and more so to restore the dignity of our people,” added the AR.
The movement has given Schlettwein three weeks to respond to their suggestion upon which they will follow-up.
STAFF REPORTER
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