Sri Krishna
The Qatar Central Bank (QCB) has implemented revised regulations regarding mortgage acquisition in Qatar. These alterations impact the borrowing limits and repayment durations for individuals seeking mortgages. Applicable to Qatari banks and their local branches, these updated guidelines specify that branches of Qatari banks operating outside Qatar must adhere to the regulations set forth by the respective local authorities. These adjustments aim to enhance the security of real estate loans and align with the evolving requirements of the real estate market.
Table of Contents
The new rules divide real estate loans into three categories:
Category 1:
For Qatari individuals acquiring residential properties valued up to QR 6 million, the maximum Loan-to-Value (LTV) ratio stands at 80%, coupled with a maximum loan tenure of 30 years. Properties exceeding QR 6 million command a maximum LTV of 75% with a similar maximum tenure of 30 years.
In the case of residents, for collateral property values up to QR 6 million, the maximum LTV permitted is 75%, with a maximum loan tenure of 25 years. If the property value surpasses QR 6 million, the maximum LTV is capped at 70%, and the maximum loan tenure remains at 25 years.
Category 2:
This financing category encompasses loans for ready properties intended for investment and commercial purposes, with repayment primarily reliant on real estate-generated revenues. The Loan-to-Value (LTV) ratios and tenure limits are subject to variations contingent upon the property’s value and the borrower’s citizenship or residency status.
Category 3:
This category pertains to financing real estate under construction for investment and commercial purposes, where repayment is linked to property-generated revenues. The Loan-to-Value (LTV) ratios and tenure limits vary for Qatari citizens, companies, and foreigners (both residents and non-residents).
The Qatar Central Bank (QCB) has instituted regulations specifying borrowing limits based on individuals’ salaries. Qatari citizens are eligible to borrow up to 75% of their salary, while expatriates can borrow up to 50% of their income. For individuals obtaining permanent residency in Qatar through property ownership, banks may extend the loan repayment period. Additionally, individuals borrowing for properties under construction can benefit from a grace period of up to 3 years before commencing full repayments.
These regulatory adjustments aim to ensure secure borrowing practices for acquiring homes and properties, promoting an understanding of the associated risks by both banks and borrowers.
mes and properties in a safe way, and that the banks and borrowers understand the risks involved.
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