Joint Security over Mortgage Asset Program

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What is the Joint Security over Mortgage Asset Program?

A program launched by Eskan Bank that allows citizens who have benefited or are eligible to benefit from Social Housing Finance to obtain additional finance from a local bank using the same title deed as security for the finance. They can mortgage the property or transfer its ownership to Eskan Bank and the financing bank simultaneously as security for both financers.

The program includes several options that accommodate the diverse circumstances of those who want to benefit from the program, allowing their requests to be assessed on a case-by-case basis. The program provides options for purchasing housing or land, completing construction work, Renovation, or settlement of a commercial finance debt with Eskan Bank.

Which banks are currently participating in this program?

National Bank of Bahrain
Bahrain Islamic Bank
Al Baraka Islamic Bank
Kuwait Finance House
Al Salam Bank
Ahli United Bank
Khaleeji Bank

Which banks are currently participating in land and construction financing?

National Bank of Bahrain
Al Baraka Islamic Bank
Al Salam Bank
Ahli United Bank

Who is eligible for this Program?

Applicants for whom housing finance was initially allocated or will be allocated, or who previously obtained housing finance and wish to obtain commercial finance from a participating bank, taking into consideration its terms and conditions.

What are the forms of financing offered by the participating banks?

Islamic financing
Commercial loans

Is a specific price required for the desired property?

Are there certain conditions for eligibility for the program related to the applicant’s age and monthly income?

The program comes at a subsequent stage to obtaining or qualifying for Social Housing Finance, and thus the beneficiary will have already met all conditions.

As for financing from commercial banks participating in the program, age and income eligibility is subject to their terms and conditions.

Is property ownership transferred to the financing bank?

In the case of Islamic financing, the ownership of the property is transferred to Eskan Bank and the financing bank. In the case of financing using to traditionalCommercial loans, the property is registered in the name of the beneficiary and mortgaged in favor of Eskan Bank and the financing bank as a collateral for the financiers. In all cases, Eskan Bank retains the title deed of the property until all social housing finance obligations are settled.

Can program beneficiaries change their financing bank?

Yes. You can change the current financing bank to a new one by coordinating between the two financial institutions, and psettlingsettling the outstanding mortgage with the existing bank using financing from the new bank.

Can beneficiaries request additional financing from the financing bank after a few months or years?

Yes, provided the purpose for financing is related to the same property secured by the housing and commercial financing, the financing bank grants approval, and the total financing value of the debt owed by the beneficiary does not exceed the value of the property.

How can a housing unit applicant benefit from the program?

First, the applicant must change at the Ministry the type of social housing service requested from ‘Housing Unit’ to ‘Housing Finance’. Then the applicant can apply to benefit from the program and obtain commercial financing from one of the participating banks.

Can one spouse (not both) benefit from the program with the participating banks?

Yes, but only in accordance with the conditions of the financing bank.
Note: spouse should be Husband/wife only.

Can a housing unit beneficiary apply for the Joint Security over Mortgage Asset Program with participating banks?

No. Only those who are housing finance beneficiaries or qualify for it can benefit from the program.