Buying a home is one of the most important investments in life. Tunisians generally place great importance on housing, yet buying or selling a home is becoming an increasingly difficult dream to realize.
Eligibility criteria for obtaining a mortgage vary from one bank to another, but in general banks assess the borrower’s repayment capacity based on income and expenses. They also review the borrower’s credit history, employment situation, and the value of the property they wish to purchase.
In Tunisia, the maximum authorized debt ratio is 40% of the borrower’s monthly income. Banks may also require a guarantee, such as a mortgage on the property.
It is important to note that obtaining a mortgage in Tunisia can take time and requires complete documentation. Potential borrowers should therefore be prepared to provide financial information and documents such as bank statements, pay slips, and property certificates.
Mortgages are granted for terms between 10 and 25 years with interest rates ranging between 5% and 13.15%.
The loan-to-value ratio is generally 80%, as banks require self-financing of at least 20% of the mortgage value.
More than 80% of Tunisian households own their homes. However, access to homeownership differs by area: in rural areas, 93% of households are homeowners, while in urban areas fewer than 75% are homeowners. One fifth of the urban population are renters. (Housing Finance in Africa Yearbook 2022).
The ongoing rise in land and construction material prices makes real estate in Tunisia increasingly expensive or even unaffordable for a large segment of Tunisians. The decline in purchasing power, high mortgage costs and interest rates, and the lack of residential land have put the real estate market under strain.
Real estate prices are rising regularly, making property purchases more difficult for low-income people. In addition, eligibility criteria for obtaining mortgages are becoming increasingly strict, which can make it difficult for borrowers to qualify for financing.