Jordan » Mortgages

Market-rate mortgages increased 350 percent between 1997 and 2002, and now represent nearly 6 percent of GDP.  Residential mortgages are about 8 percent of total bank lending. At least 10 banks compete to make residential mortgage loans, and adjustable rate mortgages are now regularly available for 20 year periods and for 80 percent of a home’s value. 

Significant initiatives over the last decade have resulted in impressive growth in mortgage financing:

Government removed subsidized lending programs from the Housing Bank and removed its regulatory advantages over other banks.

Jordan established a liquidity facility to provide fixed-rate medium term refinance loans to banks making mortgage loans .Removed old legislation limiting the total amount of interest payable on a loan, which had limited maturities to approximately 7 years.