By Hilma Amukwiyu
In effort to address housing challenges among civil servants, on the 26 June 2025, the Minister of Finance, Ericah Shafudah, announced the approval of GIPF’s pension backed home loans (PBHL) scheme.
Since then, there has been a lot of misleading information, hence the need to clarify what this product is about so that members can make informed decisions when the rolling out starts.
We first have to understand that pension savings are people’s last resort. When one becomes unemployed due to either sickness, resignation, dismissal or retirements, in most cases their pension savings becomes their “Saviourâ€. Pension funds are managed with that at the back of the mind.
It’s also important to remember that our pension funds are prudently managed so that after retirement, people don’t become burdens to the state.
1. What is a Pensioned-Backed Home Loan:
While your traditional home loan uses the financed property as collateral. A pension-backed home loan uses a portion of your pension savings for repayment (collateral) IN CASE OF DEFAULT. For this reason, the PBHL can be used to buy, build and renovate houses both in urban and rural areas (proclaimed and unproclaim areas).
2. Who qualifies for PBHL?
All GIPF active members who have accumulated retirement savings.
3. How much will I qualify for?
A minimum of N$ 5000 and a maximum of 33.33% of your pension savings. An assessment will however be done on every individual and depending on their income, expenses and years to retirement, a qualifying amount will be determined.
4. Why am I being charged interest rates if it’s my pension money that is being used to grant a loan? Remember, it’s a loan. Interest rates are what is charged for borrowing. GIPF has a responsibility to grow and guard your pension. The aim is to enable members to own decent homes while growing their pension simultaneously.
5. What happens in case of death while repaying the PBHL?
Ideally, like any other loan, a life cover would have been ceded to the loan and will then settle the outstanding balance.
*Hilma Amukwiyu is a Credit Risk Management professional. She writes in her personal capacity and can be reached on shatiamukwiyu@gmail.com
