What is a building loan?

MyProperty Namibia
Namibia's #1 independent property portal

A Building Loan is used to finance the construction of a dwelling on vacant land or to finance additions and renovations to an existing home.

A Building Loan is where a portion of the approved loan amount is retained by the bank and the funds are advanced to the borrower in stages as progress payments during the construction period. The bank will only make a progress against construction work already completed, therefore the contractor has to be in a position to fund the purchase of building materials and carry out the construction work until the work has reached a stage where a progress payment can be made by the bank.

When applying for a Building Loan, you will need:

  • Your Namibian identity document/valid Namibian passport
  • Proof of residence (i.e. a copy of your most recent municipal account, not older than 3 months)
  • If married: a marriage certificate and antenuptial contract (if applicable)
  • If divorced: a divorce order together with settlement agreement
  • If widowed: a death certificate
  • Proof of income (latest payslip / latest financial statements)
  • If banking with another bank: 3 payslips and 6 months bank statements
  • Deed of sale of erf- Property and approved building plans
  • A deposit might be required, depending on the purchase price or the valuation of the property, whichever is the lowest
Home Loans Property News
4 Money mistakes first-time buyers make and how to avoid them
24 Feb 2023
Navigating your finances as an aspiring first-time home buyer can feel like a minefield - from maintaining your credit score to saving up for your deposit - but knowing the money mistakes most first-time buyers make and how to avoid them will help smooth out the process.
read more
A guide to determine how much house I can afford
13 Oct 2022
Buying a home is both exciting and stressful - determined by an infinite number of factors that vary depending on the lifestyle you want or the needs you have. However, everyone’s journey starts at the same place - how much you can afford to spend on a home.
read more
7 Tips for first-time buyers
19 Aug 2022
House-hunting is always stressful, especially so for first-time buyers worried about making a mistake that could end up costing them a lot of money. However, they can easily take the strain out of the situation by following some basic guidelines.
read more
Financial mistakes to avoid during the home buying process
19 Aug 2022
While saving up a deposit to purchase a property is a great financial feat, there are several other financial considerations that buyers need to keep in mind when preparing to purchase a home, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
read more
Real Estate Tools
Bond Calculator
Calculate the estimated repayments on a home loan and savings with extra payments