Learn about Home Loans
How Is My Mortgage Application Evaluated?
After the completion of documentation, the bank’s committee will assess the ability of the client to meet the repayments for the entire duration of the loan. They will look at income, the value of the property, and projected future earnings.
What Are The Charges Linked To My Home Loan?
Costs vary according to the program, there is a commission on the loan ranging from 0.5% to 2% of the amount payable in the first year. In addition, there are some costs in the event of the client’s desire to postpone the loan, or delay the repayments.
Can The Income Of More Than One Person Be Considered For Eligibility Calculations?
There are many banks and financial institutions, that offer joint mortgage loan applications. Special conditions must be fulfilled. Applicants must both confirm income, national identity and provide valid bank statements.
Frequently asked Questions
What are the available mortgage systems ?
Real estate financing methods in the Kingdom of Jordan are: Lease and Mortgage.
What is the concept of the home loan?
A lease entitles a customer to possess a property but not own it for a specified period, with ownership transferring at the end of the loan, provided all terms are satisfied. A mortgage system is where the property is acquired in return for a fixed repayment amount for a certain period. The monthly payment includes a profit margin for the bank. If payments are defaulted the property returns to the bank.
Are you eligible to apply for a home loan?
In Jordan the following documents will need to be provided: A valid identity card, Employment contract confirming the salary and number of years of service, Bank account showing the income for a period of six months, Official property specifications provided by independent agent, and a letter from the real estate agent showing the price of the property.
What are the required steps to apply for a home loan in JO?
After choosing a suitable property an estimation of the house value must be proven, with a letter from the owner, then the customer must prepare the documents and application form for the bank.
What is the average interest rate in JO?
Interest rates vary for many factors, including the price of the property and the client’s income, but the average interest rate is around 6.5% of the property value.
What is the maximum age for applying for a housing loan?
It depends on the bank but usually the age limit is between 18 years and 60 years.
Which banks are offering home loan in JO?
All banks in the Hashemite Kingdom of Jordan offer housing loans as well as some financial institutions.
What are the most important advantages to look for in institutions before borrowing?
Individual needs vary depending on their income and the property, but one must be careful that the funding covers the value of the property, in addition to the repayment period of close to 25 years. Institutions that offer clauses such as early repayment options and favourable terms are ones to look at.
What is the maximum amount allowed for a home loan?
Vary according to the type of program offered from the bank, but the amount of funding may reach a maximum of 250,000 dinars in some banks.
How long will it take to get my loan approved?
Once you have completed all the required documents, it takes between five to 15 working days.