Page 12 - Demo

12HOUSEFINDER SPECIAL EDITION - PIPF | MAY 2026\\Following on the January 2026 announcement that the Government Institutions Pension Fund (GIPF) obtained authorisation to finance the home loans of civil servants using their pension as collateral, excitement has mounted. This was confirmed by Mr Cacious Siboleka Siboleka, Manager: Alternative Investments of the GIPF.Rather than taking a loan against the house itself (a mortgage bond), public servants may use their accumulated pension savings as collateral. This is particularly useful for those who struggle with high deposits or wish to build in communal areas where banks typically won%u2019t provide traditional bonds.%u201cThe pension-backed home loan scheme offers government employees a future with a home, whether on proclaimed or communal land. Depending on years of service and accumulated pension %u2013 one third of the withdrawal amount may be applied for %u2013 doors are now open to homeownership,%u201d said Mr Siboleka.Under the newly amended Pension Funds Act 24 (Section 19), the GIPF can either lend money directly or act as a guarantor for a bank loan.To date, fewer than a quarter of GRN employees have made use of their home loan subsidies due to a lack of affordable housing. But this is where Osona Village puts housing within reach. The Preferred Investment Property Fund (PIPF), which first partnered with GIPF in 2011, is supporting the large-scale housing developments in Osona Village, as well as in Omuthiya and Otavi. These are the rulesThe objective of the pension-backed home loan scheme (PBHLS) is to provide homes, hence finance from the GIPF will not be granted for personal loans, farming activities, commercial properties, business ventures, vehicle purchases or movable assets. The loan amount is equivalent to 33.33% of the member%u2019s withdrawal/transfer benefit. The loan enables employees to buy an existing home or vacant erf, build a new home in town or in rural areas, renovate or extend a current home, or refinance or %u201cbuy out%u201d an existing expensive home loan from a bank.The interest rate has been set at repo rate plus 2.5% (6.5% + 2.5% = 9%). This is very favourable in comparison to the prevailing prime rate of 10.50% and the average mortgage rate of 11.25%. Prospective buyers may loan as little as N$5,000. The maximum loan term will be 20 years, meaning 240 instalments or the period remaining to retirement age of 60 years.How to go about obtaining a loanThe first step is to know how much accrued pension is available. Applicants should send an email to pensionhomeloan@gipf.com.na, providing an identity number. Secondly, if communal land is the target, contact the local Traditional Authority to obtain a letter of permission (certificate of registration of customary land). Thirdly, follow the application process using one of the two administrators.Mr Siboleka added: %u201cThe Fund went through a competitive, transparent process to appoint the administrators for the PBHLS and decided on First Capital Treasury Solutions and Kuleni Financial Services. Their appointment was based on set criteria and costing parameters that would provide best-cost benefits. Members can select their administrator of choice.%u201dIf using administrator First Capital Treasury Solutions, visit their Windhoek, Ondangwa, Katima Mulilo or Swakopmund offices to obtain, complete and submit application forms. Their website is another option: www.firstcapitalnam.com. They can be contacted at 061-446700, 061-426400 or 081 772 2949.Similarly, before contacting Kuleni Financial Services, obtain the pension benefit statement and permission letter. Application forms may be obtained and submitted via the ministries%u2019 Human Resources (HR) offices or via the Kuleni Financial Services website: www.kuleni.com.na. They can be contacted at 061 205 1757 or homeloan@kuleni.com.na.The GIPF offices will not be providing or collecting any application forms. Under the newly amended Pension Funds Act 24 (Section 19), the GIPF can either lend money directly or act as a guarantor for a bank loan.Home ownership within reach of GRN employeesCacious Siboleka Siboleka, Manager: Alternative Investments of GIPF