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ABJ launches JD200m initiative with 4.99% interest for first-time apartment buyers

By Maria Weldali - Nov 13,2024 - Last updated at Nov 13,2024

The Association of Banks in Jordan launches a landmark JD200 million initiative on Wednesday to help Jordanian citizens purchase their first homes (Photo by Maria Weldali)

AMMAN — The Association of Banks in Jordan (ABJ) launched a JD200 million initiative on Wednesday to help Jordanian citizens purchase their first homes, offering exclusive loans and financing options for ready-to-move apartments.

During a press conference, ABJ Chairman Bassem Khalil Salem said that the initiative is among the largest in Jordan’s banking sector, showcasing a strong commitment to supporting homeownership.

The chairman also highlighted the anticipated positive impact on society and the Jordanian economy, noting that the initiative aligns with His Majesty King Abdullah's directives to improve Jordanians' quality of life and promote economic stability.

The JD200 million fund will provide a loan product specifically designed for citizens buying their first homes, enabling a large segment of Jordanians to achieve homeownership, Salem said, adding "The initiative aims not only to enhance social stability but also to increase citizens’ financial security."

The loan offers a fixed 4.99 per cent interest rate for the first three years, with repayment terms extending up to 25 years, providing borrowers with flexibility and easing their financial burdens.

Salem added that the initiative is expected to stimulate various sectors connected with the housing sector, fostering sustainable growth and contributing to a more stable, prosperous future for the Kingdom.

ABJ Director General Maher Mahrouq highlighted the favourable financing terms for first-time homebuyers, including fixed interest rates and extended repayment periods.

“This structure gives citizens an affordable path to homeownership, helping them plan for long-term financial stability,” he said, noting that eligible borrowers can secure loans of up to JD150,000, covering up to 100 per cent of the property’s cost.

Participating banks have collectively committed JD200 million, with allocations based on each bank’s assets, demonstrating the sector’s dedication to sustainable development and economic progress, Mahrouq added.

Eligibility requirements include first-time homeownership, a debt-to-income ratio not exceeding 55 per cent, and a certificate from the Land Department confirming that neither the applicant nor their spouse owns any other residential property.

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