Regulatory Alerts2016-01-01
Instructions No. 5 of 2016 Concerning Housing Loans and Real Estate Financing
The Palestine Monetary Authority issued Instructions No. 5 of 2016 to regulate housing loans and real estate financing for all banks and specialized lending institutions operating in Palestine. The directive establishes strict loan-to-value (LTV) ceilings and repayment periods ranging from 7 to 25 years based on the borrower's credit rating, while capping standalone residential loans at USD 80,000 over a maximum 12-year term. It further mandates a maximum 50% debt burden ratio, restricts the use of housing loans for existing debt repayment to 10%, and explicitly repeals the 2014 housing and real estate financing instructions effective June 6, 2016.
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