10 Reasons your housing loan application gets rejected
Aug 14, 2021 by AmwalCom
Getting a housing loan is one of the biggest decisions you might want to make n your
life. Before making this decision, you need to ask yourself some questions:
- Are you
able to have your monthly payment paid on time along the loan term period?
Would you need to get another loan later? Does your DBR allow you to get
- Do you
have a down payment? Do you have work stability to ensure you have a consistent
income to pay off your debt?
- Are you
sure of the house you would like to buy? Would you need more money for
renovation or furniture?
If you are
sure of the points above, then you would need to look for a bank that can grant
you the loan and to know your chances of getting one.There are
higher chances that your housing loan application gets rejected due to a lot of
reasons some of which might be known, and others need some clarification. Here
are the 10 reasons your housing loan application gets rejected in Jordan:
chances of getting a housing loan in Jordan increases if you work in the public
sector because of the work stability the public sector employees gets in
comparison with the other sectors. If you are a private sector employee
however, there are extra points to check by the bank.
2- Monthly Income
Your net salary
has to be higher than the minimum salary required from the bank to get the
loan. The minimum salary is usually higher for private-sector employees than
public sector employees. For business owners, you need to have a commercial
register and a profession license in addition to a bank statement for at least the
last 6 months. Bear in mind that most banks ask that the business has been
operating for at least 2 years and that the monthly salary is higher than 1000
3- Company Accreditation
You do not
need to worry if the company you work for is not accredited by any of the
banks. This is because most banks ask for a salary transfer and a higher salary
instead, if the company is not accredited (the house is mortgaged when getting a
housing loan making it relatively easier to get one if your company is not
rates are sometimes lower for employees working for a company accredited by the
bank. In general, the public sector entities (retired, military, government)
are accredited by all banks
4- Salary Transfer
transfer is a must for housing loans by most of the Jordanian banks. Therefore,
you need to ask your company about the possibility of having a salary transfer if
banks ask for a 10-20% downpayment for most of the sectors. For example, if the
house is 100,000 JDs and the downpayment needed is 10%, this means you will get
a loan for 90,000 JDs and you need to provide the 10,000 JDs in cash.
is an important factor given the long-term period for housing loans. Most banks
ask that the borrower age by the end of the loan period does not exceed 65-70
years old. For example, if you are applying for a 30-year housing loan and your
age at the beginning of the period was 45 years old and the bank policy you are
getting the loan form is asking for a maximum age of 65 years old by the end of
the loan. This means that the maximum period for your housing loan would be 20
years instead of 30. The loan amount, the monthly payment, and your DBR will
differ accordingly and so there is a chance your application gets rejected if
you do not meet the criteria.
the loan amount you are asking for is higher than what you can get, the bank
might reject your application or ask you to provide a higher downpayment. Your
age and your DBR might be the reason behind that as explained above.
is your ability to pay based on your monthly income and it does not exceed the
50% of your income maximum usually. For example, if your salary is 1000
JDs/month and the DBR the bank is asking for is 50%, then you can get a loan
with a maximum monthly payment of 500 JDs. The loan amount you can get is
can learn more about the DBR from this video
9- Social Security
look at your net salary registered in the social security. If you are not part
of the social security programs, your application will most probably get
banks ask that your social security subscription is no less than 3 months for
the public sector and 6 months for the private sector.
10- Credit Report
you were late in paying off your previous debts, this will show in your credit
report and makes it very hard for you to get a new loan.
can get your credit report from CRIF for free once a year. You can also ask for
your report from the banks’ mobile applications.
bank has its own policies, and your application might get rejected for
reasons other than the listed above. We advise you to make sure you can commit
to paying your housing loan.
can compare between housing loan offers in Jordan, here