Home Finance (Mortgage)
Buy, build or renovate your home over up to 25 years.
Loans and finance
Live in it today. Own it at the end.
Lanternvale Ijara Home Finance is lease-to-own: the bank buys the home, you live in it and pay rent, and ownership passes to you when the lease ends.
Applications are not possible: this is a fictional test website.
Key benefits
No interest
You pay rent for using the home plus an amount toward buying it, based on a rental rate, not interest.
Up to 80% financing
You contribute 20% of the property value and the bank buys the rest.
Capped rental rate
The rental rate of 6.40% p.a. is reviewed once a year and can never rise above the cap in your contract.
Ownership guaranteed at the end
When you finish the lease, the home is transferred to you by gift or a token sale.
Who it's for
For families who want to own their home in line with Islamic principles.
- Families buying a first apartment or villa who avoid interest
- Customers moving their home finance from a conventional bank
- Residents buying a ready home from an approved developer
- Salaried couples planning long-term stability
Features
- Bank owns the property during the lease
- Rental rate reviewed annually with a contractual cap
- Tenor up to 25 years
- Major structural maintenance and property takaful covered by the bank as owner
- Transfer of home finance from another bank (buy-out)
- Early purchase of the property allowed at an agreed price
How Ijara works
Ijara Muntahia Bittamleek means a lease ending in ownership. The bank buys the property and registers it in its name. You sign a lease and live in the home, paying monthly rent calculated on a rental rate. Because the bank is the owner, it carries the owner's responsibilities such as major maintenance and property takaful. At the end of the lease, the bank transfers the home to you.
Rates and figures
| Item | Detail |
|---|---|
| Financing | Up to 80% of property value |
| Rental rate | 6.40% p.a. (reviewed annually, capped) |
| Tenor | Up to 25 years |
| Ownership transfer | At the end, by gift or token sale |
Fictional figures for software testing.
| Part | What it covers |
|---|---|
| Fixed rent | Your use of the home, based on the rental rate |
| Supplementary rent | Gradually builds your promise to buy the home |
| Service charges | Minor maintenance, paid directly by you |
Illustration of an Ijara Muntahia Bittamleek structure.
Fees and charges
| Arrangement fee | 0.5% of the finance amount (maximum JOD 1,000) |
|---|---|
| Property valuation | JOD 200 |
| Late payment | JOD 15 per missed payment, donated to charity |
| Early purchase | No fee; price agreed at the time |
Eligibility
- Aged 21 or over, and no older than 70 at the end of the lease
- Minimum monthly household income JOD 900
- Ready property with clear title
- Rent payments no more than 50% of monthly income
Documents you need
- National ID or passport with residence permit for each applicant
- Salary certificates and 6 months of bank statements
- Sale agreement or reservation form
- Property title deed and site plan
How to apply
- Get a free pre-approval
- Choose your home and sign a promise to lease
- The bank buys the home and leases it to you
- Pay monthly rent and receive ownership at the end
Frequently asked questions
Is the rental rate the same as interest?
No. Rent is paid for the use of a real asset the bank owns. The rental rate is simply how the rent is calculated.
Can the rent go up?
The rental rate is reviewed once a year, but it can never go above the cap written in your contract.
Who pays for repairs?
Major structural maintenance is the bank's responsibility as owner. Everyday upkeep is yours as the resident.
What if the home is damaged in a fire or flood?
The property is covered by takaful arranged by the bank as owner, and rent is suspended if the home cannot be lived in.
Can I buy the home before the lease ends?
Yes, at a price agreed with the bank at that time.
Related products
Murabaha Finance
The bank buys the item and sells it to you at a disclosed profit.
Wakala Investment Deposit
The bank invests your money as your agent for an expected profit.
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Lanternvale Bank is fictional. Figures are examples for software testing only. Finance is subject to credit approval and, if it were real, to local banking regulation.