More and more people in Dhaka now want to buy their own homes. Real estate is growing fast, but buying a home is not always easy. It takes more than saving for a down payment. You also need to understand how to get a home loan and how to register the flat properly.
This guide explains the mortgage process in Bangladesh in 2025. It also covers information about the RAJUK flat registration fee. Whether you want to buy a new flat or a second-hand one, this guide can help you understand the process and associated costs.
How the Mortgage Process Works in Bangladesh
You must follow a few steps to get a mortgage. First, you choose a bank or a finance company. Then you submit an application form. Along with it, you give your NID, TIN, photos, income papers and other documents the banks require. After that, the bank checks your income, because they want to know if you can repay the loan. Salaried people must show salary slips and job details. Business owners show trade licenses and bank statements. Most banks want you to earn at least BDT 50,000 per month. However, some banks accept BDT 30,000 for government jobholders. You also need at least 2 or 3 years of work experience. The bank also checks your age. You must be between 25 and 65 years old in most cases.
When your income and documents are good, the bank reviews the property. They check if the land or flat has a clear title. They also verify if it complies with RAJUK plans. If everything is in order, the bank will send you a loan offer. It shows the amount they will lend, the interest rate, and the repayment period. You review the offer, read it thoroughly, and then choose to accept or reject it based on the terms. If you accept, you sign an agreement with the bank for the mortgage. Through this process, the flat becomes a mortgage. The bank holds the title deed until you repay the loan. The money goes directly to the flat owner or developer. If the flat is already built, the whole loan is given at once. Although if the flat is under construction, the loan is given in stages. Your monthly payments begin after the loan is disbursed. Once your monthly payments start, you have completed the mortgage process in Bangladesh. We recommend reading our home loan guide to better understand the process, terms and rates.
Loan Rates and Terms in 2025
In 2025, interest rates for home loans in Bangladesh are between 11% and 14%. Government lenders like Bangladesh House Building Finance Corporation (BHBFC) offer lower rates, around 9% or 10%. These loans are for middle-income people and usually have lower loan limits.
Banks offer loans for up to 25 years. The loan amount can range from BDT 2 crore to BDT 2 crore, depending on your income. You must also pay 20% to 30% of the flat’s price as a down payment. For example, City Bank gives loans from BDT 5 lakh to BDT 2 crore. The loan tenure can be 1 to 25 years. Standard Chartered also offers long-term loans, but if you are self-employed, they typically provide a shorter term, such as 10 years. Most banks allow early repayment without a hefty fee. However, you should always check this in the loan agreement.
RAJUK Flat Registration Fee in 2025
Rajdhani Unnayan Kartripakkha (RAJUK) is the public agency that is responsible for maintaining urban development in Dhaka. If you buy a flat in Dhaka, Narayanganj, Savar, Keraniganj, or Gazipur areas, you must pay the registration fees. Typically, there are two cases-
Buying a New RAJUK Flat
If you get the flat directly from RAJUK, the fees include:
- Stamp Duty (2%)
- Registration Fee (0.5% to 1%)
- City Tax (2%)
- Advance Income Tax (8%)
- VAT (2% if the flat is up to 1600 sq.ft or 4.5% if bigger)
These fees are based on the flat’s price set by RAJUK.
Buying a Second-Hand RAJUK Flat
If the flat was already owned by someone else, you need RAJUK’s permission. This step is called Sale Permission. You pay RAJUK a transfer fee. The cost is typically BDT 100 per square foot, plus 15% VAT. After that, you pay the regular taxes during registration. You must also pay a mutation fee to RAJUK. The fee ranges from BDT 5,000 to BDT 10,000.
Read our detailed guide to the flat registration fee and process to know more about RAJUK costs and the timeline of the process.
Common Registration Costs in Dhaka
When you register a flat, you pay several fees to the government. These include:
- Registration Fee: 0.5% to 1%
- Stamp Duty: 2%
- City Corporation Tax: 2%
- Advance Income Tax (AIT): 8%
- VAT: 2% or 4.5% (for new flats only)
- RAJUK Transfer Fee (for second-hand RAJUK flats): BDT 100/sq.ft + VAT
- RAJUK Mutation Fee: About BDT 5,000–10,000
Altogether, these costs can be 12% to 14% of the flat’s value.
Areas Where Costs Are Different
Not all areas in Dhaka have the same tax or value. In upscale areas like Gulshan, Banani or Baridhara, the government sets a higher minimum value. So taxes are higher too. In places like Uttara or Purbachal, the property value is lower. So taxes are a bit easier on the buyer. Purbachal flats also need RAJUK approval, but the land value is moderate. Mirpur has many private flats as well. However, if your flat is not on RAJUK land, you do not need RAJUK permission. In that case, you only pay the regular fees.
How Concord Property Solutions Can Help
Buying a flat is a big decision. The paperwork, loans, and fees can be confusing. At Concord Property Solutions, we help make it easier. We guide you from the first step to the last. We help you choose the right bank, verify your documents, and assist with registration and RAJUK mutation. If you’re busy or unsure, we’ll manage the entire process for you. Our team of professionals has extensive experience in Dhaka’s real estate market and can connect you with top banks. As part of a leading real estate company, we are well-versed in RAJUK rules and ensure that they are consistently maintained. To learn more about our home loan services, contact us, and our representatives will guide you.
Buying a flat means more than just paying the price. You must be familiar with the mortgage process in Bangladesh and the RAJUK flat registration fees. These costs can add up, so it is better to plan early. When you work with Concord Property Solutions, you get trusted advice and complete support. Whether you’re buying your first flat or investing in another, we make the process smooth and secure.
Frequently Asked Questions (FAQ)
1. Who can apply for a home loan in Bangladesh?
Anyone with a steady income can apply. You must be between 25 and 65 years old. If you have a job, you need 2–3 years of work experience. If you own a business, you must show your trade license and income records. Some banks ask for a co-applicant too.
2. How much home loan can I get in Bangladesh?
The bank gives you up to 70% or 80% of the flat’s value. You pay the rest as down payment. Loan amounts can go up to BDT 2 crore, but that depends on your income and the bank’s rules.
3. What is the interest rate for home loans in 2025?
Interest rates in 2025 are around 11% to 14% in most banks. Government banks may offer lower rates, like 9% or 10%. The rate also depends on the mortgage process in Bangladesh, which is based on your income, loan amount, and repayment time.
4. What is the RAJUK flat registration fee in Dhaka?
You must pay several fees. These include stamp duty, registration fee, city tax, advance income tax, and VAT. If you buy a new flat from RAJUK, you pay VAT too. If the flat is second-hand, you pay a RAJUK transfer fee as well.
5. How much is the RAJUK transfer fee?
For second-hand RAJUK flats, the transfer fee is BDT 100 per square foot. You also pay 15% VAT on that amount. You must pay this to RAJUK before you register the deed.
6. Is the registration fee the same in all areas of Dhaka?
No, it is not the same. In areas like Gulshan or Baridhara, the land value is higher. So, the fees are higher. In places like Mirpur, Uttara, or Purbachal, fees are lower because land values are lower there.
7. Do I need RAJUK permission for every flat?
You need RAJUK permission only if the flat was given by RAJUK or built on RAJUK leasehold land. If the flat is private and freehold, then you do not need RAJUK permission. You only follow the regular registration steps.