Buying a home in Namibia: costs, prices and affordability explained

For many Namibians, buying a home is one of the biggest financial decisions they’ll ever make. But in 2026, affordability isn’t just about the price on the listing; it is about interest rates, upfront costs, and how all of that fits into your monthly budget.

If you are wondering what you can actually afford to buy right now, we break down the true costs of buying a home in Namibia so you can make informed decisions.

The three things that matter the most

When it comes to affordability, three numbers shape almost every buying decision. These numbers are the interest rate, the average house prices, and the third is the costs buyers often forget about.

Interest rates

At the start of 2026, Namibia’s interest-rate environment looks like this:

• The repo rate sits at 6.50%
• The prime lending rate is 10.00%
• Home loans are typically priced around 10.5% - 11%, but this can vary depending on your risk profile

These numbers are vital to remember when you are getting ready to buy a home because even the smallest change in the interest rate can influence your monthly repayments - for better or worse. For most buyers, this is the single biggest affordability factor.

To ensure you get the best possible rate from the start, you will need to assess your financial health and make improvements where needed before applying for a home loan.

House prices

While you are able to find some gems below the average house price, you will need to be aware of what is happening to house prices in the market you want to buy in. This will help you find the benchmark and will help you set a realistic budget when saving up for a deposit or seeing how much you will need to budget for when you buy a home.

The average house price in Namibia can vary greatly depending on the area and it would be best to speak to a knowledgeable real estate agent who can guide you through the current market conditions.

The hidden costs buyers often forget

When most buyers start house hunting, the focus is almost always on one number: the purchase price. But it doesn’t take long before reality sets in. Once you begin viewing homes, speaking to banks, or putting in an offer, you quickly realise that the price on the listing is only part of the story. 

Beyond the deposit and monthly bond repayment, there are several additional costs that can catch buyers off guard if they’re not prepared.

Here’s what else you need to budget for.

Deposit 

While deposits can vary, and in some rare cases, the banks do offer 100% home loans, it is always best to save up for a deposit.  Our advice is to always aim for a 10% deposit, which will allow you to get a better interest rate, and you will need a smaller loan amount. 

Legal and transfer costs

Buying property involves a conveyancer (property attorney), and these costs are set on a tariff that scales with price.

These fees usually cover:

• Legal transfer

• Deeds Office registration

• Admin and compliance checks

They’re unavoidable, but predictable — and your agent or attorney can give you an estimate upfront.

Bond and bank fees

If you are using a home loan, you may also need to pay a once-off loan initiation/origination fee. Other costs include a possible valuation cost and a small monthly admin fee. These are standard banking charges and should be factored into your upfront and monthly costs.

So...what can you actually afford?

While each person’s financial situation will vary, the example below will show you what a realistic monthly repayment scenario looks like.

For the table, we used a 30-year home loan, an interest rate of 11%, a 10% deposit, and worked on the common guideline that your bond repayment shouldn’t exceed 30% of your gross monthly income.

Final thoughts for buyers in 2026

While buying a home in Namibia remains achievable, affordability is now much tighter than it was just a few years ago.

The smartest buyers in 2026 are focusing on monthly affordability, not just the purchase price. They are asking for insights on regional and suburban markets from local real estate agents, and they also understand true upfront costs and know that getting prequalified early allows them to avoid surprises.

If you are making one resolution as a home buyer this year, it should be that you won’t fall into the trap of stretching yourself thin just because you like a property.