Bank Windhoek reduces major lending rates in line with repo rate cut
In response to the reduction in the repo rate as announced by the Bank of Namibia this week, Bank Windhoek announced its Prime Lending rate will decrease by 0.25% from 7.75% to 7.50% per annum, while the Mortgage Lending rate will decrease by 0.25% from 8.75% to 8.50% per annum.
The reductions in these rates takes effect on 22 August. Claire Hobbs, Chief Treasurer at Bank Windhoek said with the prime rate having fallen by 2.75% since January 2020, the Bank of Namibia is trading off the need to stimulate the economy through growth in loans and advances while simultaneously ensuring savings and investments remain within Namibia.
“Rates are at historic lows and this provides an ideal opportunity for first time home buyers to enter the market as property prices decline and loan repayments become more affordable,” Hobbs said.