Housing loans for young couples – August 2013

The new subsidized housing loan scheme that has been launched by the central bank addresses the concern of the 35’000 new couples who emerge every year besides the permanent source of demand sustained mainly by expatriates. The scheme is expected to be a success particularly because local banks are keenly competing to attract candidates and grab the lion share of the market.

The bank conditions for eligibility can be summarized as follows:

  • First, banks require a minimum of ten percent to 20 percent as down payment for residents and a 20-30 percent down payment for expatriates.
  • Applicants should be aged between 25 and 64 years.
  • Applicants’ minimum required salary differs from one bank to the other, averaging between $1’000 and $2’000. Generally, monthly reimbursement payments should not exceed one third of an applicant’s monthly income, though it is possible for more than one person’s income in the household to enter in the reimbursement plan.
  • Applicant’s minimum required employment period differs slightly from one bank to the other, but is generally around two years.