Housing Loans Program is a long-term program. The loan is granted to people wishing to purchase a house of their own. The value of the loan can go up to USD 250,000.
- The loan value ranges from USD 25,000 to USD 250,000 or its equivalent in JOD or depending in the price of the real estate. The loan value must be proportionate to the fixed monthly income of the family.
- The loan maturity period ranges from 5 years to 25 years.
- Up to 6 months grace period in the event the real estate is not ready for habitation the interest of which is paid in monthly installments during that period.
- Free life and real estate insurance.
- Borrowing may take place in USD of JOD.
- Interest ratio 4% +LIBOR with a minimum of 5.5% and a maximum of 12% for the USD and 7.5% for the JOD.
- The borrower will be granted Easy Life Card agreed upon in advance (may be optional depending on the customer).
- The purpose of the loan is to purchase a ready real estate or a skeleton real estate and finishing works, or finishing works of skeleton real estate.
- Life insurance for the borrower and his/her partner (if any) at 100% of the existing loan balance throughout the loan period provided that it has been endorsed for the benefit of the Bank.
- Financing rate up to a maximum of 85% of the price of the real estate or appraisal, whichever is less, or pursuant to instruction set forth by the Monetary Authority in case of purchase and finishing works.
- Free insurance on the real estate, which is the subject of the loan at the ratio of100% of the value of the real estate throughout the loan period provide it has been endorsed for the benefit of the Bank.
- The amount of the loan or any part of it shall not be disbursed to the customer but to the amount of the original owner of the real estate (landlord) or to the contractor’s office that will do the finishing works. The first payment of the loan shall be made after mortgaging the real estate designated for finishing and the remaining payments shall be paid in three stages until the finishing works have been completed in accordance with the architectural report that shows the stages of work and the appraiser’s report.
Terms and Conditions for Receiving the Loan for Employees
- Employees must have tenure of no less than 24 months.
- Employees must have a full-time contract.
- Employees must have a fixed regular income transferred to the Bank without interruption for at least 6 months. (Employees must present a bank statement for at least 6 months in case their salary has been transferred to the Bank).
- Submittal of a written pledge that the salary and entitlements of the private sector employees will be transferred to the Bank without interruption.
- The maximum age of the borrower at the time the last installment is made shall range from 60-65 years according to the retirement age in his/her workplace.
Terms and Condition for Free Businesses
- The account activity must be proportionate to the required account.
- The income must be proportionate to the payment of the overall existing and new facilities.
- Submittal of documents that prove employment, income, and account statements for a period of at least 24 months provided that period of employment in the same job is no less than 5 years.
- Financing ratio up to a maximum of 65% of the value of the real estate or appraisal, whichever is less.
- The maximum age of the borrower at the time the last installment is made shall be 65.
- In the event the borrower or/and his/her partner are free business people, it is required that he/she must have one guarantor at least whose salary is transferred to the Bank and that his salary will cover a minimum of 60% of the monthly installment. The age of the guarantor must be proportionate to the maturity period provided that it does not exceed 60 years at the time of the payment of the last installment (65 years of the guarantor were an employee) and that monthly obligation do not exceed 50% of the guarantor’s monthly income.
Terms and Conditions Concerning the Real Estate Designated for the Loan
- The plot of land on which the real estate is constructed must be registered at the Land Registry and the real estate designated for the loan must have separate title deed or registration documents.
- The real estate must be registered in the name of the borrower and/or his/her partner.
- The real estate must be located in Areas A and B under PA control.
- The real estate must be for the purpose of residency only (not for commercial purposes).
- The real estate must be ready for habitation and all services and infrastructure facilities must be available. In case there is no kitchen, each case will be studies separately according to the situation of the customer and the condition of his/her current place of residency.
- The real estate must be free of property tax and has a clearance certificate from the local competent tax authority (municipality) provided that the customer brings in a clearance certificate from the municipality at the end of every year.
- In all cases the real estate must not be mortgaged to any party.
- The real estate must be mortgage-able to the Bank.
- Proof of income.
- Real estate registration documents (title deed).
- Purchase-sale agreement.
- All statement on bank accounts.
- Addition of one guarantor at least in some cases only according to the customer’s situation and his/her credit partner.
The following terms and conditions must be met in the event a guarantor has been required:
- Transfer of income to the Bank.
- Guarantor’s monthly income must cover the minimum of 60% of the monthly installment.
- The age of the guarantor must be proportionate to the maturity period provided that it does not exceed 60-65 years at the time the last installment has been paid in line with the regulations of his workplace (65 years in the guarantor is an employee).
- Overall monthly obligations must not exceed 50% of the guarantor’s monthly income as a guarantor and debtor.
In case there are any financial obligations or previous personal loans incurred by the borrower (and his/her partner if any), the ratio of the obligations must not exceed 50% of the overall family’s income. There is, however, a possibility to examine additional income in some cases and according to the conviction of the facilities committee. There is also the possibility to schedule other existing obligations from the real estate mortgage loan. Each case will be examined separately depending on the conviction of the facilities committee.
- Salary or account movement of the borrower and/or/his/her partner. If the customer is an employee in any other bank, he/she shall be required to sign cheques for the value of the loan and interests.
- First degree mortgage of the real estate for the benefit of the Bank for the value of the loan and interests.
- At least one guarantor provided that his/her salary is transferred to the Bank.
- Signed cheques from the customer and/or his/her partner who owns free businesses.
The borrower must present proof that he has made the first payment of the value of the real estate to the landlord owner of the real estate. The value of the first payment differs according to the difference in the kind of income:
- Borrower with tenure: The first payment must not be less than 15% of the value of the real estate designated for the loan.
- Free business borrower: The first payment must not be less than 35% of the value of the real estate designated for the loan.