Qatar Housing Loan: Amount, Fees and Monthly Installment

If you are a Qatari citizen, the government housing loan is based on four main numbers: up to QAR 1,200,000 in financing, a 1% management fee instead of interest, a monthly payment of QAR 3,364, and a 35-year repayment period.

We reviewed Qatar Development Bank’s housing pages and application forms to explain each number clearly.

We also cover the two details that often confuse applicants: when repayments start and what your salary bank agrees to in the application.

How much is the housing loan worth

The loan provides up to QAR 1,200,000 in financing for eligible citizens in accordance with the regulations of the Housing Department at the Ministry of Social Development and Family.

The maximum loan amount does not change whether you are building a new home or buying one. The process begins at the ministry.

You submit your application to the Housing Department, and once it is approved, Qatar Development Bank (QDB) provides the financing.

The 1% is a management fee, not interest.

The housing loan does not charge interest. Instead, you pay a 1% management fee, which is divided across the entire repayment period rather than being charged yearly.

This 1% fee is the only cost for the financing. It covers the costs of arranging and managing the loan, and this setup is supported by a Sharia ruling, which we explain later.

The monthly installment and the repayment period

The monthly payment is QAR 3,364, and you have up to 35 years to repay the loan. This means you pay the same amount each month for up to 35 years.

When installment collection starts

You do not start making repayments right after signing the contract. If you are building a home, payments start either two years after signing or when the full loan amount is paid out to you, whichever happens first.

The two-year rule exists because construction loans are disbursed in stages as the building progresses. This way, there is a set deadline for starting repayments, even if the loan is paid out over time.

If you are buying an existing home, the process is different. The loan is paid to the seller after the property is registered in your name, and repayments start as soon as the seller gets the full amount. There is no two-year waiting period in this case.

Check your installment start date

The undertaking your salary bank signs

Many people miss an important document in the application: the bank undertaking. We have checked this document in every application form.

Your salary bank signs this document and sends it to QDB’s Housing Loans Department. The bank agrees to two things:

• to transfer a set maximum amount from your account each month for loan payments,
• and not to allow your account to be transferred to another bank or branch until QDB confirms in writing that you have no further obligations.

The maximum monthly payment can vary depending on the application form. Each form sets its own limit, and that amount applies only to that form.

Application form	Maximum monthly transfer in that form's undertaking
Construction loan application	QAR 3,500
Purchase loan application	QAR 3,364
Heirs loan application	QAR 2,857

A note on Sharia compliance

There is a special ruling for the 1% fee. QDB’s Fatwa and Sharia Supervisory Board issued a fatwa on housing loans, and its decision is based on two contracts.

The loan is a qard hasan, which means it is a benevolent loan with no extra charges. The 1% fee comes from a separate paid agency contract, called wakala bi-ajr.

This fee covers the bank’s actual costs of arranging and managing the loan, and the agent’s fee is set below those costs.

This arrangement makes the loan allowed under Islamic Sharia. The fatwa is written in Arabic, and there is another article that explains it in detail.