How to apply for a mortgage in Bangladesh
How to apply for a mortgage in Bangladesh
Applying for a mortgage in Bangladesh involves 4–6 weeks on average and requires multiple steps. Getting pre-qualified speeds up your property search and makes you a more attractive buyer to sellers and developers.
Application process step-by-step
Initial inquiry: Contact the bank or apply online to check eligibility and request a quote.
Submit application: Provide personal, financial, and property details along with required documents.
Evaluation and verification: The bank assesses income, credit score, and property title and value.
Loan sanction and agreement: You receive a formal offer with EMI schedule and repayment terms. Sign loan agreement and mortgage deed.
Disbursement: After all checks, the loan amount is released directly to the seller or builder.
Keep photocopies of all forms and signed contracts. Make sure the loan terms reflect what was discussed. Track EMI deductions and ask for annual interest statements for tax filing or rebate claims.
Final checklist for approval
Ensure National ID, TIN, updated payslips or income tax certificate, utility bills, and property documents are in order. Avoid cheque bounces or overdrafts before applying. You can also use a third-party agent or broker to assist with paperwork and bank selection.
Bangladesh’s mortgage sector is on the rise, where gradual reforms and robust economic growth intertwine to reveal hidden prospects for investors.
How to compare mortgage offers in Bangladesh
How to compare mortgage offers in Bangladesh
Choosing the right home loan in Bangladesh requires reviewing more than just the interest rate. Consider total cost of borrowing, flexibility, processing time, and any hidden fees. Banks vary widely in terms of service, transparency, and follow-up.
What to compare across lenders
Interest/profit rate: Check whether it’s fixed or floating, and the frequency of revisions. Islamic loans will show a profit rate instead of interest.
Processing fee and charges: Typically 0.5%–1% of the loan amount. Ask about appraisal and legal fees too.
Down payment requirements: Usually 15%–30% of the property price, depending on the bank and LTV cap.
Prepayment and settlement terms: Look for flexibility to repay early without penalties.
Customer service and turnaround time: Compare approval speed and support throughout the loan tenure.
Compare rates and features across major lenders like BRAC Bank, DBBL, City Bank, and Islami Bank. Use digital tools or mortgage calculators available on their websites. Inquire about discounts during Eid, Bengali New Year, or year-end campaigns.
Tips to get the best deal
Improve your credit score, maintain consistent bank balance, and submit updated income documentation. Applying jointly with a spouse or family member can increase loan eligibility. Negotiating directly with loan officers often leads to fee waivers or better terms.
Understanding mortgage types in Bangladesh
Understanding mortgage types in Bangladesh
In Bangladesh, home loans are provided by commercial banks, Islamic banks, and non-bank financial institutions (NBFIs). Loans are typically available for purchasing, constructing, renovating, or extending residential properties. The Bangladesh Bank regulates lending terms and sets broad guidelines on debt-to-income and loan-to-value ratios.
Main types of home loans
Conventional home loan: Based on interest-bearing repayments, with fixed or floating interest rates.
Islamic home financing (e.g., Bai-Muajjal or Ijarah): Shariah-compliant, with profit-sharing or lease-based structures instead of interest.
Fixed rate loan: Interest rate remains unchanged for the full tenure, ideal for budgeting.
Floating rate loan: Interest adjusts periodically based on market benchmarks or Bangladesh Bank directives.
Government-subsidised housing finance: Offered through selected banks for low-to-middle income borrowers or public servants.
Most loans range from BDT 5 lakh to 2 crore, with repayment periods of up to 25 years. Loan-to-value (LTV) is typically 70%–85% of the property price, depending on the borrower's profile and property type. Islamic loans are increasingly popular for their ethical model and flexible structures.
Who can apply for a mortgage?
Both salaried and self-employed individuals aged 25–65 are eligible. Basic documents include National ID, income proof (salary slip or business income), tax return, bank statements, and property documents. A clean credit history and steady income are crucial for approval.
Last Update
31.3.25
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HOW TO COMPARE BANGLADESHI MORTGAGES: TYPES AND HOW TO APPLY
Looking to buy or build a home in Bangladesh? This complete guide breaks down all major mortgage options—commonly known as home loans. From Islamic and conventional financing to fixed and variable interest rates, we explain everything you need to compare offers and navigate the application process. Learn how to qualify, what documents to prepare, and which banks offer the most competitive terms.