Real estate loans in Bahrain are a way to help anyone who is interested in the real estate market to invest in all types of real estate, whether land or residential or commercial.
And since the Bahraini real estate market has become a thriving and profitable market, it became a necessity to talk about real estate financing solutions provided by Bahraini banks to facilitate real estate investment process.
Whether you want to purchase or build, or whether you’re a Bahraini citizen or an expat, the following five banks provide various financing solutions that suit the needs of anyone who is interested in investing in the real estate market.
1- Ahli United Bank (AUB)
Ahli United Bank offers mortgage loans for the citizens of the Gulf Cooperation Council on lands, villas, residential real estate and investment property.
The bank bears a ratio of the loan while investors bear the rest. The following is the proportion of each of the investor and the bank for all types of real estate:
A- Land (Bank’s share is 50% and the investor share is 50%)
B- Villas and residential units (Bank’s share is 60% and the investor share is 40%)
(C- Investment property (Bank’s share is 75% and the investor share is 25%
It is worth noting that the payment period is up to 10 years with a grace period of up to six months for late payments.
In the case of land, the land is registered in the name of the investor directly. To find out more details please click here.
2- Bahrain Islamic Bank (BisB)
All real estate solutions that investors may require to facilitate the buying process are provided by Bahrain Islamic Bank. The Bank finances ready-to-movie-in real estate, commercial real estate in addition to the re-financing of owned real estate.
The limit of the amount of funding is 750,000 BD as the Bank requires an advanced payment and salary transfer to the bank accounts.
The bank also offers different financing solutions such as “lease with the promise of ownership,” which on its basis the bank buys the property and rent it to the investor with a promise of full ownership to the original investor upon paying all the rest of the required fees.
The bank also offers a so-called “diminishing participation” restricted only to commercial property where both the bank and the investor are partners in the purchase (at different rates determined on the basis of the ownership size of each party) where the entire property’s ownership will be transferred to the investor when all the installments are paid.
To find out more details about the mortgage loans provided by the Bank press here
3- Bank of Bahrain and Kuwait (BBK)
With mortgages designed to suit the needs of its clients, whether for residential or commercial purposes, BBK offers different and flexible systems for the granting of mortgages to investors, which are given to the following real estate types:-
- A) Residential properties
- B) Commercial properties
- C) Apartments within special projects (Lulu Towers, waves Plaza, Tala Island, Durrat Al Bahrain, Juffair Sky Views, Seef Vista, La Reve, Riffa Views, Amwaj Hambz, Nesma, Saraya Basteen, Porta Reef, Peak Tower, Zawya)
(deposit D) Land (in return for security
The maximum amount provided by the Bank is 350,000 BD up to BD 750,000 for those with financial guarantees.
To find out more details please click here
4- Arab Bank
With funding up to 85% of the property value, the Arab Bank provides mortgage loans for residential units for both Bahrainis and expatriates.
It is worth mentioning that the repayment period is up to 25 years. The Arab Bank also finances ready-to-move-in units.
Above all, the Arab Bank also offers “Sever Golden Loan” which associates the bank accounts of customers with their housing loan account, which will lead to reducing the interest on the loan as well as shortening the repayment period. For more details press here.
5- Al Salam Bank
In line with the provisions of the Islamic Sharia, Al Salam Bank provides mortgage financing systems to facilitate the process of buying or building real estate of various kinds with amounts reaching 250,000 BD
Al Salam Bank also provides a flexible repayment period of up to 360 months.
And for those who want to get co-financing plans, Al Salam Bank also opens the doors to apply for this type of mortgage. It also provides the option of transferring or buying a mortgage from other banks. For more details press here.