Apartment financing options for first-time buyers in Bangladesh

Apartment financing options in Bangladesh

There are several options available for apartment financing but every option has some conditions, advantages and disadvantages. Before selecting any financing you must have proper knowledge about those. We made a list of available options with key features and conditions.

Home loans from banks and financial institutions

Home loans are one of the most popular options for financing an apartment in Bangladesh. Major banks like BRAC Bank, City Bank, DBBL, and Premier Bank offer home loans with different interest rates, repayment terms and conditions. Financial institutions like IDLC offer home loan packages.

Key features:

• Loan tenures up to 25 years
• Interest rates typically range from 8% to 10%
• Financing of up to 80% of the apartment’s value
• Options for both fixed and variable interest rates

Eligibility criteria:

• Stable income source (salary, business or rental income)
• Good credit history
• Minimum age requirement (usually 21 years)

Developer-backed financing

Many real estate developers in Bangladesh now offer their own financing options or partner with banks to provide customized payment plans. These plans are often more flexible than traditional bank loans and may include interest-free installments during the reconstruction period.

Benefits:

• Lower or no interest during the initial phases
• Direct communication with the developer
• Ideal for under-construction properties

Islamic home financing

There are some Islamic home loan options for buyers who prefer Shariah-compliant solutions. Islamic banks in Bangladesh offer home financing based on Islamic principles such as Ijara or Murabaha. This option avoids interest (Riba) and uses profit-sharing models.

Available at:

• Islami Bank Bangladesh Ltd.
• Al-Arafah Islami Bank
• EXIM Bank

These options are gaining popularity among first-time buyers who want to align their finances with their faith.

National Housing Authority (NHA) schemes

The government of Bangladesh sometimes introduces subsidized housing projects or low-cost financing schemes through the National Housing Authority. These schemes are the best options for first-time buyers and middle-income families.

Highlights:

• Affordable housing units
• Lower interest rates
• Government-backed security

These schemes are usually announced on the NHA and eligibility is limited to certain income brackets.

Joint Applications

First-time buyers can consider applying for loans jointly with a family member. This increases the chances of securing a larger loan with better terms.

Tips for first-time buyers

First-time real estate buyers can face some common issues. Here are some tips for first-time buyers. Follow these tips before making a decision-

• Compare: Compare multiple loan offers before making a decision.
• Costing: Check the total costing of the loan including the processing fees and hidden charges.
• Budget: Make a proper budget for monthly installments, registration fees, and maintenance costs.
• Consult: Share your available loan options with an expert and consult to help you navigate the process.
• Approval: Get pre-approved to understand how much financing you can secure.

Final thoughts

Apartment ownership in Bangladesh is now more achievable than ever for first-time buyers. With a variety of financing options available—from bank loans to developer plans—you can find a solution that fits your budget and lifestyle. Take time to research, compare offers, and seek guidance from experienced real estate professionals.

Assetic Ltd offering ready apartments for sale at affordable prices in Bangladesh. If you want to buy your first apartment, our team is here to help you. Contact us today to explore the best properties and financing solutions that match your goals.

Frequently Asked Questions (FAQs)