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Qatar Central Bank Implements New Rules for Mortgages in Qatar

Qatar Central Bank

The Qatar Central Bank (QCB) has made some changes to the rules for getting mortgages in Qatar. These changes affect how much money people can borrow and how long they have to pay it back. The new rules apply to Qatari banks and their branches in Qatar, while branches of Qatari banks outside Qatar need to follow the rules of the local authorities. These changes are meant to make sure that real estate loans are safer and to match the needs of the real estate market.

Table of Contents

The new rules divide real estate loans into three categories:

Category 1:

For Qatari individuals purchasing residential properties up to QR 6 million, the maximum LTV is 80% with a maximum tenure of 30 years. For properties above QR 6 million, the maximum LTV is 75% with a maximum tenure of 30 years. For residents, if the collateral property value is up to QR 6 million, the maximum LTV is 75% with a maximum tenure of 25 years. If the property value exceeds QR 6 million, the maximum LTV is 70% with a maximum tenure of 25 years.

Category 2:

This category covers financing for ready properties for individuals and companies for investment and commercial purposes, where repayment is mainly dependent on real estate revenues. The LTV and tenure limits vary based on the value of the property and the citizenship or residency status of the borrower.

Category 3:

This category applies to financing real estate under construction for investment and commercial purposes, where repayment is based on property revenues. The LTV and tenure limits differ for Qatari citizens and companies and for foreigners (residents and non-residents).

The QCB has also set limits on how much people can borrow based on their salary. Qatari citizens can borrow up to 75% of their salary, while expatriates can borrow up to 50% of their salary. If someone gets permanent residency in Qatar because they own property, the bank can give them more time to pay back the loan. The rules also say that if someone is borrowing for a property that is still being built, they can have a grace period of up to 3 years before they have to start making full payments.

These changes are meant to make sure that people can borrow money for homes and properties in a safe way, and that the banks and borrowers understand the risks involved.

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Written by Saleh wasim

Blogger who writes topics such as Employment, News, travel, sports, events and life in Gulf.

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