Dream home, bigger payout : Parliament to discuss increasing housing finance from BD80,000 to BD120,000

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Public Utilities Committee of the Council of Representatives is preparing to discuss a new draft law that proposes increasing the amount of housing finance provided by the Ministry of Housing to a maximum of BD120,000, instead of the current BD80,000. The explanatory memorandum of the law states that it aims to ensure that the financing amounts are commensurate with the real estate market prices in the Kingdom of Bahrain and to encourage citizens to apply for the alternative housing programs offered by the Ministry.

Amount

The text of the proposed law, submitted by MP Jalal Kazim along with a number of other MPs, states: “A new article numbered (5) bis shall be added to the Housing Law, stating: “The amount of financing for the purchase or construction of a housing unit from the Housing Bank shall be determined according to the monthly income of the applicant and according to the financing schedule prepared by the Ministry, provided that the financing amount shall not be less than eighty thousand Bahraini dinars and not more than one hundred and twenty thousand Bahraini dinars.”

The explanatory memorandum of the proposal states that it aims to raise the ceiling of the financial financing amount for the purchase or construction of a housing unit, so that the financing amount shall not be less than eighty thousand dinars and not more than one hundred and twenty thousand Bahraini dinars, according to the monthly income of the applicant.

This is to ensure that it is commensurate with the beneficiary of the financial service from the Housing Bank and with the prices of the real estate market, and in comparison with the current living situation in light of the rising prices of real estate and building materials, which negatively affects the owner of the housing service in the accumulation of debts on him, in addition to other fees that he incurs after the purchase, which may force him to borrow personally from other financing banks in order to be able to purchase or complete the construction of the dwelling, and thus the citizen will be in a circle of financial obligations that burden him as the head of a family.

Therefore, this proposal will contribute to increasing the desire for the housing finance services provided by the government, which will guarantee them stability and a decent life, the explanatory memorandum stated.