Conditions For Granting Mortgage Loans

If you ask anyone a passing question about the most important thing they want to possess in their life; His immediate answer would be (home).  The home is the most important source that gives security to people in this life. And whoever does not own a home of his own strives with everything he has and makes every effort to become a property owner and not a real estate tenant. Recently, people have had many options to own their own homes, due to the financial facilities that they provide. It is provided by banks within the (housing loan) clause, which gives them the opportunity to choose a lifetime home within specific conditions and with easy financial payments for many years. We at Homes Jordan recommend housing loans over personal loans because the amount of home loan financing covers the value of the property by up to 80% or more in many cases, and grants a long repayment period of up to 30 years, while the personal loan finances a partial amount that may be much less than the value of the property and reduces the repayment period, in addition to that, we at Homes Jordan support and assist you in choosing the appropriate bank to finance the home loan and facilitate all procedures for you.

Now, let's discover together the most important motives for people to own a home of their own, what are the terms of the loans, and the best financing banks.

Why Do People Prefer to Buy and Own Their Own Homes Instead of Renting One? 

Some people prefer to pay monthly installments for the property ending with owning it, rather than paying the rent for temporary periods, and then handing over the property to its owner.

Be careful in choosing the house, its location and specifications that meet its requirements.

Freedom to dispose of the house, make modifications and decorations without restrictions, and request permission from the homeowner.

Non-compliance with the leasing determinants and having to make any choice as a result.

Freedom to dispose of the property when needed, whether by renting or selling it

Before we deliver into the details of real estate loans, we invite you to review the most beautiful homes offered for sale on our Homes Jordan website.

But..

Are all people able to buy a lifetime home? And do the financing housing loans meet their requirements and provide for their needs?

Let's First Learn About What A Mortgage (Housing) Loan Is 

The housing loan financed by the bank is a financing program from the bank to the customer, which consists in lending him an amount of money to buy a new property. The loan amount depends on the customer’s capabilities and compliance with the conditions. The loan may be either a partial loan or a full loan.

People usually resort to a housing loan because it is the best way to own a private house because of the low salary rate compared to apartment prices, as committing to a monthly housing installment with the bank and owning time in a short time is much better than waiting for long years in attempts to collect the amount of the property, and the same for This leads to the high prices of land and building materials that prevent people from thinking about buying land and starting construction.

What Are the Home Loan Terms? 

All banks and even financing companies have conditions for granting a home loan, and banks and financing companies share most of the conditions for granting loans with some minor differences that depend on the bank’s policy such as the repayment period, minimum and maximum salary, or interest rates and others, and banks follow the policy of approving companies that issue Salaries in which the percentage of risk is the least, and it may differ sometimes with specific exceptions.

What are the conditions for granting a home loan to all Jordanian banks? 

The age of the applicant for the loan should not exceed 75 years at the end of the loan repayment period (the entity that issues the salary is taken into account, as the age may differ from one entity to another)

The total monthly income for private sector employees should not be less than 400 Jordanian dinars, and for government sector employees less than 300 Jordanian dinars. (taking into account the bank's estimated value of the property)

For self-employed persons, the total monthly income must not be less than 1,000 Jordanian dinars.

The period of work of the applicant for the loan application should not be less than 6 months for the transferred salary, and 12 months for the self-employed professions.

The customer's income must be proven.

The real estate guarantee submitted by the customer must be approved by the bank.

These terms are general and common terms, and we try to mention them on our Homes Jordan website; The applicant for the loan should have a general and comprehensive knowledge of the most important conditions that will be presented to him by the bank from which he will request the loan, and the rest of the details will be known extensively according to the policy of each bank, and now; After we talked about the most important conditions and information that you must be aware of before applying for a loan, let's get acquainted with the best banks that grant real estate (housing) loans according to a statistic that took place in April 2022, based on the advantages granted and the interest rate, but do not forget before that To get acquainted with the most beautiful housing areas in Amman and to be able to choose the area so that we can help you choose the house of your life.

Quick: All banks impose a salary transfer requirement on them to obtain a housing loan 

Non-Jordanians (foreigners) can obtain real estate loans from Jordanian banks under certain conditions that they can identify according to the bank. 

Best Jordanian Banks for Home Loans

Safwa Islamic Bank

Interest rate: 6.5%

Duration: 25 years

Finance value: up to 80% of the property value

Note: 100% financing rate for amounts equal to or less than 50,000 dinars and 90% for amounts more than 50,000 dinars.

Al Rajhi Bank

Interest rate: 5.75%

Duration: 30 years

Finance value: up to 90% of the property value

Note: The financing rate for apartments reaches 90% and for villas up to 80% of its value.

Jordan Kuwait Bank

Interest rate: 5.25%

Duration: 30 years

Finance value: up to 80% of the property value

If the financing amount is more than 80% of the value of the property, the interest rate becomes 5.50%.

Note: It is possible to finance employees of unaccredited companies in the private sector, provided that a guarantor is available with special conditions.

Arab Jordan Investment Bank (AJIB)

Interest rate: 5.5%

Duration: 30 years

Finance value: up to 90% of the property value

If the financing amount is more than 80% of the value of the property, the interest rate becomes 5.50%.

Note: It is possible to finance employees of unaccredited companies in the private sector, but at an interest rate of 10.25%, and a financing period of up to 20 years only for employees of unaccredited companies.

Al Etihad Bank

Interest rate: 5.5% (for salaries over 1,000 dinars)

Duration: 20 years

Finance value: up to 80% of the property value

If the financing amount is more than 80% of the value of the property, the interest rate becomes 5.50%.

Note: The interest rate increases by 0.5% if the financing period is up to 25 years or the financing value is more than 80% of the property value.

Capital Bank

Interest rate: 5.5%

Duration: 30 years

Finance value: up to 80% of the property value

More Information:

5.5% interest is available for the public sector (a salary of more than 400 dinars) and the approved private sector with a salary of more than 700 dinars.

5.99% interest and financing up to 25 years for approved private sector employees with a salary of fewer than 700 dinars.

A salary of 2000 dinars for unaccredited companies

5.99% interest if the financing is 80 - 84%

6.5% interest if financing 85 - 100%

Jordan Ahli Bank

Interest rate: 5.5% (salaries over 1,000 JD)

Duration: 25 years

Financing value: up to 100% of the property value for the public sector, and 90% for the approved private sector

note:

Financing for companies approved by the bank only, and the interest becomes 5.75% if the salary is less than 1000 dinars.

Islamic International Arab Bank

Interest rate: 4.75% (for military personnel)

Interest rate: 5.99% (for government and approved private sector employees)

Duration: 25 years

Financing value: up to 100% of the property value for the public sector, and 90% for the approved private sector

But before you take any step to apply for a mortgage loan, we, the Homes Jordan team, are happy to help you find the property that fulfills your dream of owning the home of a lifetime. Not only that, but Homes Jordan has agreements with several banks such as Safwa Islamic Bank, Al-Rajhi Bank, and the Arab Islamic Bank in addition to several other commercial banks, and our consultants are specialized in providing the necessary advice to their clients and all services related to choosing a property and obtaining a housing loan to buy it from A to Z! They know the budget that you set to buy the house, and on The specifications of the house you want, and then they take upon themselves the task of searching for the house and informing you of all the details first until the appropriate decision is taken to buy the property, during which the Homes Jordan team has prepared all the necessary papers and taken all procedures to sign the housing loan contract, As soon as you finish choosing the house, you end at the same time with the bank's procedures.

We invite you to communicate with our experts and consultants and provide them with the details of your dream home and leave them the journey of finding the home that matches the specifications you requested and completing the mortgage loan procedures with the bank.

In order to fully complete the information journey with you in the housing loan, here are the most important documents that must be available to obtain the loan, which are usually common to all banks. (H4)

A valid smart status card for Jordanians, or a valid passport for non-Jordanians

Salary slips for the last month.

Statement of subscription to social security

salary certificate

Bank statement for the last 6 months

Commercial register / valid professions license/profession practice license/syndicate membership ID

And do not forget that the Homes Jordan team will be with you step by step and facilitate all procedures for you and finish them quickly.

Information about the statistics of the best mortgage lending banks was taken from the Amwalcom website and from the banks' electronic websites.