Mazaya monthly cap cut to BD427, Housing Ministry tells Parliament

TDT | Manama

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The maximum monthly instalment cap for Mazaya home financing has been cut by BD100 to BD427, the Ministry of Housing and Urban Planning has told Parliament.

In a written reply to MP Khaled Buanaq, the ministry said the Cabinet decision means government support will keep covering the gap for beneficiaries who reach the cap, with the lower ceiling applying across the programme.

Mazaya was launched in 2014 as a financing scheme run with private-sector banks, the ministry said.

Mortgage

Banks provide mortgage finance of BD81,000 for citizens who meet the eligibility rules, including an income band of BD600 to BD1,200 a month, and the financing is for buying a ready-built home.

The ministry said its role is to direct government support by paying the difference between the bank-set monthly instalment and the amount paid by the beneficiary, who pays no more than 25 per cent of income.

The beneficiary’s deduction is reviewed every two years to keep it at 25 per cent of income, until it reaches the cap set by the financing bank.

Prices

It said the BD81,000 finance amount was set using studies that measured home prices at the time.

The ministry added that more than 13,000 citizens with housing applications have benefited from the programme. The ministry said it carried out budget studies after requests from MPs, looking at raising support by finding extra funds outside its approved 2025–2026 budget, and lowering the cap from BD527 to BD427.

Under the change, it said, support will run through to the end of the repayment period without reviewing later rises in income once 25 per cent of salary reaches BD427 or more.

Beneficiaries

It said those studies found 77 per cent of beneficiaries have average monthly instalments of BD173, while the average monthly support paid for that group is BD345.

The ministry said this group receives the largest share of support, with 67 per cent of the total gap between the cap and the 25 per cent deduction covered for them.

The ministry put the overall cost of the policy, based on its budget work, at BD825 million.

Approval

It said the Cabinet, chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, approved the change, with beneficiaries who had reached the previous ceiling receiving an estimated BD100 a month in ongoing support.

On monitoring and hardship cases, the ministry said it tracks satisfaction through demand for Mazaya financing, weekly case reports received through the national suggestions and complaints system ‘Tawasul’, and periodic surveys published through its media channels.

It also said it can raise support for citizens who take early retirement for reasons beyond their control, citing two cases handled through rescheduling instalments and increasing government support.