Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Mixed legal system consisting of English common law, French civil law, and Islamic religious lawMixed legal system consisting of English common law, French civil law, and Islamic religious lawMixed legal system consisting of English common law, French civil law, and Islamic religious lawA.1.1
    Are there specific laws that deal with mortgages? YesYesYesA.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYesA.1.3.1
    Typical number of days needed for the transfer of title494947
    WDI
    		A.1.3.4
    Are there legal constraints on mortgage features?YesYesYesA.1.6
    Loan-to-Value capYesYesYesA.1.6.2
    Payment-to-Income maximumYes  A.1.6.3
    OtherYesYes A.1.6.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Are there subsidies to households on housing finance?Yes  B.2.1
    Interest rate subsidies by special government fundsYes  B.2.1.1
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) No  C.1.1
    Tax on capital gains on property No  C.1.5
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    Notes: 40% DSTI ratio cap by Central Bank of Kuwait
    Notes: A portion of housing loans are given by Islamic banks, which differ from conventional banks in that they follow strictly Islamic law. Islamic finance consists of financial transactions from banks and non-bank financial institutions and non-formal financial institutions based on solidarity, unity, and harmony. Kuwait has seen in last couple years a few of their conventional banks make the transition to Islamic banks in order to offer housing loans to satisfy demand for housing credit.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Apart from LTV limitations, DSTI ratio caps, and term length requirements, there are also separate laws that look to limit "flipping" of properties in a speculative manner--done through a prohibition of mortgaging outside of primary residences.
    Notes: Ceiling on loans of KD 70,000 and max tenor of 15 years by Central Bank of Kuwait.
    Notes: Ceiling on loans of KD 70,000 and max tenor of 15 years by Central Bank of Kuwait.
    Notes: Central Bank of Kuwait limits LTV of 50 for undeveloped land, 60 for purchase of existing property, and 70 percent to housing construction in residential areas.
    Notes: Central Bank of Kuwait limits LTV of 50 for undeveloped land, 60 for purchase of existing property, and 70 percent to housing construction in residential areas.
    Notes: Central Bank of Kuwait limits LTV of 50 for undeveloped land, 60 for purchase of existing property, and 70 percent to housing construction in residential areas.
    Notes: Financial Stability Report 2015 page 51
    Notes: Financial Stability Report 2015 page 51
    Notes: Kuwait credit bank
    Notes: Kuwait Credit Bank, which offers the majority of housing loans to citizens, offers interest-free mortgage loans.
    Notes: Kuwait Credit Bank, which offers the majority of housing loans to citizens, offers interest-free mortgage loans.
    Notes: Page 27 - Central Bank of Kuwait limits LTV of 50 for undeveloped land, 60 for purchase of existing property, and 70 percent to housing construction in residential areas
    Notes: Page 53 - Kuwait Savings and Credit Bank is now known as Kuwait Credit Bank and disperses housing loans, among others, to Kuwait's citizens.