The Housing Finance System

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    A. Primary Housing Finance Market

    A.1 Industry Structure and Performance
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Types of originating lenders/market share:A.1.2
    Universal/ commercial banksNot available  A.1.2.1
    Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
    Average 1997-2007 A.1.7
    A.2 Size of Mortgage Finance Sector
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Total amount of home mortgage loans outstanding at the end of year in millions of USD:26,519.99 USD (millions)25,994.45 USD (millions)25,043.55 USD (millions)A.2.1
    Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)21.98%15.12%14.24%A.2.1.1
    and as % of all credits outstanding22.8%23.27%22.73%A.2.1.2
    A.3 Housing Finance Products
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
    Most prevalent type of foreign currency mortgage used:A.3.3
    Most frequent interest rates on fully amortizing:A.3.4
    Typical lender fees associated with mortgage origination: A.3.6
    Typical third party fees associated with mortgage origination:A.3.7
    Loan-to-Value (LTV) on first mortgage: A.3.8
    Maximum LTV60  A.3.8.1
    Maximum term over which pmt is calculated? 15 years  A.3.9
    Mortgage pmt-to-income ratio A.3.10
    Maximum pmt-to-income ratio (HH income)40%  A.3.10.1
    A.4 Lending and Servicing Process
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Which institutions define underwriting rules? A.4.2
    A.5 Credit Risk Assessment
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Is mortgage default insurance available?Yes  A.5.3
    B. Funding Sources for Mortgages and the Secondary Mortgage Market
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    What are the main funding sources for mortgages?B.1
    Retail funding (deposits/other)secondary  B.1.1
    Other primary  B.1.5
    C. Housing Microfinance
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Types of lenders operating in the housing micro-finance (HMF) sector:C.2
    Level of NPLs (>90 days past due) in HMFC.4
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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.