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Real estate financing methods in the Kingdom of Jordan are: Lease and Mortgage.
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.
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.
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.
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.
It depends on the bank but usually the age limit is between 18 years and 60 years.
All banks in the Hashemite Kingdom of Jordan offer housing loans as well as some financial institutions.
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.
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.
Once you have completed all the required documents, it takes between five to 15 working days.