RIDUANUR QURESHI ASSOCIATE FINANCIAL ANALYST
MORTGAGE IN QATAR Qatar’s Central Bank set laws on mortgage lending, with expat borrowers allowed to spend a maximum of 50% of their monthly salary on mortgage payments and mortgage terms of maximum 20 years. In addition, borrowers can only borrow up to 70% of a property’s value. In Qatar, both fixed and variable-rate mortgages are available. Some loans have a fixed rate for the whole period, while others have a lower introductory rate for a specific number of months or years, after which the rate becomes variable. Non-residents and Qatari who want to get a mortgage in Qatar will typically need a deposit of at least 30%. The interest rate will be determined by the amount borrowed, the borrower's income and the deposit size. Mortgages are accessible to expats aged 21 to 65 and Qataris aged 18 to 70, with monthly incomes ranging from 10,000 to 15,000 QAR. Maximum mortgage periods of 20 years apply, with average rates starting at 3.5% for conventional bank and Islamic bank offering 5.5% reduction rate. Mortgage payments are generally deducted from the borrower's bank account on a monthly basis. Some banks do not impose early repayment penalties, while others do so as a percentage of the loan balance. Doha Bank charges 2% if the loan is paid off within the first five years, and 1% if it is paid off after that. The Commercial Bank of Qatar charges 1.5 percent for the first three years and then 1% after that.
THE PEARL GATES
Mortgage in Qatar
Conventional Bank
Bank Mortgage
Islamic Bank
Down Payment (Minimum)
Interest/Profit Rate (Starting)
Mortgage Periods (Max)
30%
3.7%
20 Years
30%
5.5% Reduction Rate
20 Years
Required documents: - Application form - Original QID (Qatari ID) - Original Passport with valid visa (for expats) - Salary certificate addressed to bank - Original bank statements for the last six months (if salary is transferred to another bank) - Liability letter addressed to bank (if loan is transferred from another bank) - Title deed of property - A property valuation report
Conventional Bank
50%
Islamic Bank
6%
50%
40%
6%
40% 4%
30%
20%
4%
30%
20%
2%
10%
2%
10% 0
0 Down Payment (min)
0
0
Interest/Profit Rate (starting)
THE PEARL GATES
Down Payment (min)
Interest/Profit Rate (starting)
Office Address #421, 42nd floor, Marriott Marquis, Omar Al Mukhtar Street, Area 61, Street #850, Doha P.O Box: 2550
Call : (+974) 5086 7771
E PE ARL (+974)T H 4417 0659
G A T EEmail S - D :Einfo@thepearlgates.com V E L O P M E N T S AT A G L A N C E
www.thepearlgates.com