Mortgage FAQ
Home Loans
How do I benefit from a Mashreq Home Loan?
- High loan amounts
- Loan Tenor up to 20 years
- Highly competitive interest rates and quick process
- Loans to resident expatriates and Qatari nationals
- Loans for both the salaried and self employed
- Dedicated mortgage officer providing doorstep service
- Nominal processing fees and charges
- Transparency at all times
Who can apply for a home loan?
Qatar residents - Nationals & Expatriates.
What is the minimum/maximum age required to apply for a home loan?
For Expatriate Customers:
- Minimum age: 21 years
- Maximum age: 60 years on maturity of loan
For Qatari national Customers:
- Minimum age: 21years
- Maximum age: 65 years on maturity of loan
For self employed customers:
- Minimum age: 25 years.
- Maximum age: 60 years for Expatriates/ 65 years for Qatari Nationals on maturity of loan
What is the maximum loan amount permissible per individual?
You can borrow up to a maximum of QAR 7.5 million.
What is the maximum Loan Tenor?
The loan tenor can go up to a maximum of 20 years.
Who will process my home loan?
Our mortgage relationship manager will visit your home or office at your convenience to complete the formalities. You also have the option of visiting our Mashreq Gold center.
How long will it take to get my loan approved?
You should allow up to seven working days subject to submission of all required documents. We aim to achieve quicker turnaround time.
How is my mortgage application evaluated?
Your application will be evaluated on the following criteria:
- Your income stream
- Your employment history and stability
- Your ability to handle current obligations as well as new ones
- The value of the property being purchased
- Your assets to assess your ability to meet your down payment
Do you cover re-sale transactions?
Yes, at Mashreq we deal with two types of transactions:
Full Payment: Where the first purchaser has made 100% payments to the developer/ owner and is selling the property to you. Here the payments would be made to the first purchaser.
Part Payment: Where the first purchaser has only paid the down payment and the balance is yet to be made to the developer. Here, the down payment would need to be paid by you to the seller and the balance be made to the developer.
What is a pre approval?
A pre-approval would help you determine your eligibility for a mortgage before you decided to finalize a property.
Do you require insurance?
Yes, both Life Insurance and Property Insurance are mandatory before disbursing the loan.
Property Insurance: The Property Insurance premium is calculated on the cost of the property and is available through Oman Insurance Company (OIC). The amount of the insurance premium will be debited from your account prior to the final disbursal and each year thereafter. A property insurance certificate will be delivered to you by the insurance company within a month. Where there is a general policy covering the building in the case of an apartment, additional cover may not be necessary.
Life Insurance: Life insurance is also mandatory we have special terms with OIC but we can consider other policies that you may have provided the option to assign the policy is available. Customers with existing life insurance policies through Oman insurance Company, Zurich and Alico have the option to assign* the policy to the bank provided that it meets the following criteria:
- Policy is more than six months
- Policy covers the loan value
- Policy covers the tenure of the loan including the construction period
- Policy is active and insurance premium is paid up to date
- Please Note: An Assignment Fee will be applicable
What are the charges linked to my home loan?
- Processing fee - 1% on the approved loan amount, or maximum QAR 25,000
- Pre-approval fee - QAR 1,000
- Pre-payment fee of Nil (Zero) to 1% on the outstanding would be charged in case of early settlement from own funds
- Amendment / Re-validation Fee - QAR 500 in case of amendments made after the loan is approved/booked
- Property valuation fee - at your cost
*All the fees are subject to the sole discretion of Mashreq & may change from time to time
How will you initiate my disbursals?
Disbursals will be made to the developer based on payment schedules mentioned in the purchase contract & the confirmation from the developer on the same. In case of a secondary sale, the payment would be done to the seller after completion of formalities of the borrower.
Do I need to submit all the property documents in original?
Yes, we will be the custodians of original property documents. After the loan settlement in full, a no liability certificate & all relevant documents will be handed over to you.
Do I need to give security cheques?
Yes, this acts as security for the bank in case of non-payment of installments.
Do I need to transfer my salary to Mashreq?
Yes, this makes it convenient to repay your installments.
How does Mashreq communicate the approval?
Our mortgage relationship manager will inform you about the status of the loan. An offer letter will be provided to you on approval. You need to complete the formalities within 30 days of issuance. The offer letter is valid for a period of 60 days to allow you to complete the fixed formalities.
Do all owners of the property have to be co-borrowers to the loan?
Yes, all co-owners of the property have to be co-borrowers.
Can the income of more than one person be considered for eligibility calculations?
Yes, however all borrowers, whose income will be considered, will have to be co-borrowers to the loan.
Loan Repayments
How can I make my monthly payments?
You are required to open a current account with Mashreq. Your Equal Monthly Installment will be recovered from your account.
When will you start my Equal Monthly Installments (EMI)?
The installments will commence only after the final payment is made to the developer/seller. For example, if the final payment is completed on Dec 2010 then the first installment will begin from Jan 2011.
When do I start paying in case of under-construction property?
During the course of construction you will only re-pay interest on the money disbursed to the developer on your behalf. The actual EMI will only start after the property has been completed, and the final payment has been made to the developer.
How can I calculate my equated monthly installments?
You can use our EMI calculator on our website www.mashreqbank.com.qa Please enter the loan amount, tenor and the rate of interest.
General Section
Can I get a loan if I buy from the secondary market?
Yes, we can fund up to 70% as applicable of the evaluated price for selected completed projects as well as under-construction projects.
What is the difference between a fixed rate and a variable rate?
Fixed Rate Mortgage has the same rate for the entire term of the loan covered by the fixed rate. Variable Rate Mortgage has a rate that can change, causing your monthly payment to increase or decrease depending on fluctuating interest rates. The bank will review interest rate fluctuations on a regular basis, but your installments would only change every three months.
What is a seller’s comfort letter?
In case of re-sale transitions, Mashreq issues a seller’s comfort letter to the seller. This acknowledges the amount to be paid to him subject to the customer/buyer completing the required formalities with us.
Mortgage - Know How Terms
Home Loan: A home loan requires you to pledge your home as the lender’s security for repayment of your loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.
Amortization: Repayment of a mortgage/home loan by installments with regular payments to cover the principal and interest.
Debt-Service-Ratio (DSR): The ratio of aggregate monthly debt to aggregate monthly income.
Down Payment: Money paid by a buyer from his own funds, as opposed to that portion of the purchase price, which is financed.
EMI: Equated monthly installments
QIBOR: QIBOR is the interest rate charged by banks in Qatar for inter-bank transactions. In most cases, QIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Qatar.
LIBOR: The London Inter-bank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow U.S. dollars, in the London money market. Like the U.S. treasury and the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Loan-To-Value Ratio (LTV): The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 70 means that a borrower is borrowing 70% of the value of the property and paying 30% as a down payment. For purchases, the value of the property is assumed to be the purchase price, and for refinances the value is determined by an appraisal.
Mortgage: A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.
Processing-Fee: The fee charged by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.
Pre-Approval: A term used to mean that a borrower has completed a loan application and provided debt, income and savings information that has been reviewed and pre-approved by an underwriter.
Purchase-Agreement: A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Please Note that all information provided here is subject to change. All loans are granted at the sole discretion of the bank.
