Whether it is for residential or commercial purposes, we understand that a mortgage loan is an important step for you. At BBK, we have made the process as convenient and friendly as possible. With tailor-made mortgage loans and also loans against your current property offering the most competitive financing package.

Our mortgage loan can be used to purchase residential houses, commercial properties and land plots in Bahrain. Mortgage loans are aimed at assisting Bahrainis and all expatriates, including GCC residents to own their own house.

Eligibility

·          All nationalities resident in the GCC for both salaried andself-employed individuals.

·          For salaried individuals: between 21 years and 55 years of age.

·          For self-employed individuals: between 25 years and 55 years of age.

·          At maturity, borrower’s age must not exceed 60 years or normal retirement age whichever is earlier.

Features

·          Purchase land or developed property.

·          Construction of a home.

·          Financing for commercial development.

·          Purchase of properties in development projects (title deed waiver available).

·          Purchase of apartments in special products (title deed waiver available).

·          The loan can be used for any other reason such as education, buying other properties and medical needs.

Benefits

·          Joint borrowing (up to 3 years).

·          Minimum income requirement of just BD 350 for Bahraini nationals and other nationalities.

·          Maximum tenors up to 25 years.

·          Highly competitive interest rates.

·          Minimum down payment requirements.

·          Loan amounts reaching BD 350,000.

·          Home and life insurance available.

·          Maximum installment repayment capacity of 61% of applicant’s net income.

1.      What are BBK’s Real Estate services?

BBK currently offers real estate services and products, to enhance our customer service facilities by offering mortgage and Construction  loans, as well as loans against property-- also known as equity financing through a dedicated Real Estate Unit in the Main Branch.

2.      What type of financing does BBK’s Real Estate provide?

BBK will offer the following types of financing:
• Land Purchase
• Home Purchase
• Equity finance/Loan Against Property
• Home Construction
• Land Purchase and Home Construction

Special projects with Pre-approved projects (for example: Abraaj AL Lulu and Amwaj Plaza) 

3.      What is Equity Financing/Loan Against Property?

Equity Financing/Loan against Property is where an applicant does not necessarily want to purchase property but rather opts to mortgage his/her current existing property (located in Bahrain) with the bank and take up to %80 of its value in cash. This access to liquidity from an applicant’s current property can be used for all purposes such as consolidating loans and also to cover other expenses such as travel and education for example.

4.      Does BBK’s Real Estate provide financing to more than one applicant

Yes. Up to three borrowers permissible

5.      What are the criteria applied for financing customers?

The brief criteria are as follows:

Apart from the customer being able and willing to pay:

• The property must be located in Bahrain.
• Minimum age of salaried individual at the time of applying is 21 years and for self employed is 25 years.
• Maximum age of individual on maturity is 60. However on a exceptional basis applicants can be extended loans up to the age of 65.
• Minimum income for Bahraini applicant is BD 350 per month and for non-Bahraini applicants is BD 1000 per month.

• Minimum incomer for self-employed individuals is BD 2400 per annum. (BD 2,000 per month). The business for the self employed applicant must have been in operation for 2 years.
• Minimum three years of continuous service for residents and non-residents. If less then experience with previous employer must be for 2 years
• Debt Burden Ratio (i.e. your monthly financial obligations to monthly income) must be maximum 61%.
• Finance for purchase up to 90% of land value and up to 80% of property value that subject to a Maximum BD 750,000

6.      Does BBK offer fixed and variable rate financing?

Currently BBK offers a reducing fixed rate during the loan life for all customers to enhance brighter banking. 

7.      What is BBK Interest rate?

BBK's Interest rate is starting from 9% per annum for Bahrainis and %9.25 for non-Bahrainis, subject to terms & conditions.

10. Does the term of finance vary for different purpose of financing?

The term of financing provided by BBK varies based on purpose of financing. The minimum term for financing is 5 years.

The maximum permitted term available for variable rate financing is given below:

Purpose	Residential	Commercial
For purchase of Land	Up to 15 years	Up to 10 years
Purchase of Property	Up to 25 years	Up to 20 years

Please note that the life of the Property should not exceed 30 years at maturity of the loan. 

Please note that the same terms and conditions will be applied for loan against property.

8.      How much financing does BBK provide?

For individual customers, BBK provides up to 90% of the land value and up to 80% for the Property value.

This is of course, subject to BBK’s terms and conditions.

      The details of the required down payments is as follows:

Purpose	Bahraini National (who is a resident)	Other GCC Residents and non-Bahrainis residing in the GCC
For purchase of Land	10%	15%
Purchase of Property	20%	25%

9.      What is maximum amount of finance offered per customer?

BBK will finance maximum of BD 750,000 customer.

10. How soon can I have my approval?

Assuming you have provided all documents as per our requirements, we will provide approval within 5 working days.

11. How can I apply for financing?

You can meet or contact our Real Estate Sales Consultants at the Real Estate Unit in the Main Branch for enquiries (contact details are at bottom of this FAQ). The processing of the loans is also centralized at the Real Estate Unit in the Main Branch. You can also call BBK’s Call Centre INVITA to get a 24 hour service.

12. How much fees should I pay for availing finance?

You are required to pay:
• Handling fee minimum of BHD 250/- . This is payable at the time of application and non-refundable.
• Administrative fee of 25 fills per 1000 per month on approved finance amount. This is payable upon approval of your finance.

For Example:

The amount finance is 100,000 over 25 years (300 months). The calculation will be:

Amount /1000 * .025 *   No. of months

100000/1000 * .025 * 300 = BD 750

• Valuation fees: Land Valuation BD 25, Property Valuation BD 50. Please note that we require the Property/land valuation if the finance amount between BD 100,000 to 250,000. In case the Property/land value exceeds BD 250,000 we required two different valuations.  

13. Can I have 2nd mortgage on the property which I have already mortgaged to another institution?

No. However, BBK can refinance your existing property subject to conditions.

14. Can I settle my loans/liabilities with other banks/institutions?

If you have a property (irrespective of whether it is mortgaged or not), you can consolidate all your loans/liabilities by applying for Loan against property/Equity Financing.

15. Do I require life insurance for availing the finance?

Yes. BBK has established a life insurance cover with BNI (Bahrain National Insurance) & BKIC (Bahrain Kuwait Insurance Company) for this purpose.

16. Can I assign my existing life insurance policy?

We can accept assignment of your life insurance policy provided it meets our requirements. This is of course, subject to our review and acceptance of the policy.

17. Do I need to undergo medical test for acceptance of life cover?

You will be required to fill up the life insurance questionnaire based on which the insurance company will assess you and then advise whether medical check up is required.

18. Is it required to insure the property?

Yes. BBK has established a property insurance cover with BNI (Bahrain National Insurance) & BKIC (Home Secure Package) for fire and special perils and the property will be insured under this arrangement.

19. Can I do early settlement of finance?

Yes. You can do early settlement either part or full.

20. Does BBK charge penalty early settlement?

Yes, early settlement charges are applied towards full loan prepayments only. You will be required to pay 0.75% orBD200/- of the outstanding balance, whichever is lower, as early settlement fees.

Partial loan prepayments are free of charge and all partial prepayments are directed towards the principal amount of the loan.

21. What happens if I decide to move out of Bahrain during the finance period?

You are required to inform BBK and we will review your financial and other details then and then advise