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MORTGAGE ADVICE

A mortgage is a loan secured against your home.

It is the loan a potential homebuyer needs in order to make up the difference between the down payment and the purchase price of the home. There are a variety of mortgage programs available, with adjustable time periods and financing options.

Understanding the many different mortgages can be a confusing business unless you take professional advice.

Obviously you'll want to know which mortgage is suitable for your needs. It isn't quite as simple as choosing the lender who is offering the lowest initial interest rate at the time.
 

You also need to think about other factors such as:

  • Do you plan to sell the property in the near future?
  • Do you want your repayments to remain fixed?
  • Do you want your repayments to stay below a certain interest rate?

All of which could make a big difference to the amount you pay in the short and long term.

Our team of highly experienced consultants have access to products provided by various lenders in Bahrain.

If you need help choosing the most suitable mortgage, you should contact a qualified mortgage advisor.

Buying In Bahrain

The recent change in the law allowing Non-Bahrainis to own properties in several areas around the island of Bahrain has meant that some Bahrain based banks have introduced Mortgage facilities for Expatriates. The terms and conditions of the mortgages available are based on the value of the property, your income, and your age.

Property Leaders have organised Mortgage facilities, with one of the leading worldwide banks based in Bahrain, available for Bahraini nationals and expatriates alike.

The mortgage provider will loan up to 80% of the property value.

Mortgage Loan Facilities

Finance is available for the following:

  • The purchase of a new house for owner occupation.
  • The purchase of a house under construction with disbursal in stages
  • Refurbishment or renovation of an existing house.
  • Takeover an existing mortgage loan from another bank.
  • Against your existing house.

Loan Details (Subject to change)

Minimum Loan Amount   : BHD 25,000.000
Maximum Loan Amount : BHD 400,000.000
Maximum Loan to Value Ratio (LTV) : 80%
Maximum Tenure      :
20 years : Expatriates
    GCC Nationals
  : Self Employed
25 years   : Salaried Bahrain
Maximum Age :
55 years  : Expatriates
  : GCC Nationals
60 Years   : Salaried Bahraini
65 years : Self Employed
Eligibility :
  : Expatriates
  : GCC Nationals
  : Bahraini
  : (Residing and Employed in Bahrain)
Minimum Monthly Net Income   
 :
BHD 700 : Expatriates
  : GCC Nationals
BHD 500 : Bahraini
Minimum period of Employment        
 :

2 years of total work experience
2 years in current business
Joint Borrowers         : May be family members with a minimum
income of BD250 each
Maximum Debt Service Ratio 60% (% of net income that can be paid as a mortgage loan EMI) : 60%
Administrative Fees
(to be paid post-approval and
prior to loan disbursal)  
 : 1 % of the Loan Amount
Early Settlement Fees : 1 % of the Principal Outstanding
Interest Rate (Interest charged on a monthly
reducing balance method)  
 : Interest rate 9% p.a.
Life Insurance Cover : Mandatory
Fire Insurance Policy (for Residential Villas after Completion of construction)
: Mandatory
First Installment Due Date : 30 days after 1st draw down
Loan In-Principal Approval
: 3 working days

Documentation Requirements

Salaried Applicants    Latest Salary Slips
Latest 3 months bank statements  
Length of Service Letter from HR Dept. 
Copy of CPR & Passport
Self Employed Applicants     Copy of C.R
Latest 6 months business account bank statements
Copy of CPR & Passport

Whatever your mortgage requirements are in connection with your property, we will be happy to offer our full assistance, we have extensive experience dealing with local mortgage providers and we will gladly recommend a reputable mortgage adviser.