The newly introduced amendments are divided into three separate categories.
Category 1
Finance of ready and under-construction properties for individuals for personal residential purposes
This type of finance is associated with the client's personal sources of repayment, whether in the form of a salary or any other non-real estate sources.
For Qatari citizens buying properties valued up to QAR 6 million, the maximum loan-to-value LTV is 80%, with a tenure limit of 30 years. For properties over QAR 6 million, the LTV and tenure cap are 75% and 30 years, respectively.
Non-Qatari residents face a different scale: for properties up to QAR 6 million, the maximum LTV is 75%, with a 25-year tenure, whereas for properties over QAR 6 million, the maximum LTV is 70% with a 25-year tenure limit.
The below table summarizes the details of this category:
Category 2
Finance of ready properties for individuals and companies for investment and commercial purposes
Which primarily relies on property revenues for repayment.
Qatari citizens and businesses with a minimum of 51% Qatari ownership can avail an LTV of 75% and a tenure limit of 25 years for properties valued up to QAR 10 million. Above this value, the maximum LTV is 70%, with the tenure limit remaining the same.
Non-Qatari residents (individuals or companies) face a slightly lower LTV of 70% for properties up to QAR 10 million and an LTV of 65% for properties above this value, both with a 25-year tenure.
Non-residents have an LTV of 60% for properties up to QAR 10 million, with a 20-year tenure, and the same LTV but a shorter 15-year tenure for properties exceeding this value.
The below table summarizes the details of this category:
Category 3
Finance of under-construction properties for investment and commercial purposes
Which relies fully or partially on property revenues for repayment.
For Qatari citizens and companies with a minimum of 51% Qatari ownership, the maximum LTV is 60% with a tenure limit of 20 years. Foreigners (residents and non-residents alike) have a lower LTV of 50% with a tenure limit of 15 years.
Furthermore, QCB has stipulated guidelines for salary customers seeking mortgages. The debt burden ratio must not surpass 75% of the total salary for Qataris and 50% for expatriates.
In scenarios where customers gain permanent residency in Qatar owing to property ownership, mortgage providers have the liberty to extend the tenure to match that of residents.
The amendments also specify that for under-construction property financing, any granted grace period should not exceed three years and must fall within the overall tenure. Regular interest payments during this period are mandatory on either a monthly or quarterly basis.
The below table summarizes the details of this category:
If you would like information about luxury properties in Qatar, here are some articles for some insights on Qatar’s real estate demand!
Up-and-coming developments in Qatar to invest in 2023 | 25 Spaces Real Estate
Lusail Attractions: Things To Do In Lusail | 25 Spaces Real Estate
Do you want to know more about luxury properties in Qatar? If so, 25 Spaces can guide you with every bit of information. You can contact 25 Spaces at info@25spaces.com or connect with them over the phone at +974 4464 2525.
