Kadhila Amoomo Legal Practitioners has called for sweeping reforms to Namibia’s home loan system, arguing that current mortgage lending practices place an excessive financial burden on homeowners.

In a social media post, the legal firm claims that banks structure home loans in a way that sees borrowers paying interest for much of the early years of a mortgage before making meaningful progress in reducing the outstanding loan balance.

Using a hypothetical example, the firm argues that a homeowner who purchases a property for N$1.5 million could ultimately repay around N$5.5 million over the life of a 30-year mortgage. It says this raises questions about the widely held belief that property appreciation automatically offsets the long-term cost of financing.

Kadhila Amoomo Legal Practitioners also challenged the notion that homeowners can easily recover the total amount paid to banks when selling their properties, saying market values often do not match the cumulative cost of the loan.

The firm further criticised lawmakers, claiming Parliament should focus on strengthening regulation of the banking sector rather than allowing what it describes as an unfair system to continue. It called for legislative intervention to improve consumer protection and make home ownership more affordable.

The comments have sparked discussion on social media about mortgage affordability, interest rates and the long-term cost of financing a home. The views expressed are those of Kadhila Amoomo Legal Practitioners.

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