Sri Lanka Property Buying Guide


Find the best home loan rates

Unless you have the required funds to purchase your dream home right off, the best option is to apply for a housing loan. It's also one of the safest options to make sure you don’t end up falling for any scams. To fund this, local commercial banks offer different housing loan schemes for locals and Sri Lankan expats. They are customized based on repayment period, repayment conditions, profession, value, etc. You can compare the latest home loan rates and decide on the best one for you. Use a home loan calculator as well to find out what your monthly repayments will be.

How to obtain home loans

Housing loans in Sri Lanka are offered by various commercial banks and financial institutions. Some of them are approved within a minimum period of 3 days while others take a week or more. However, when selecting a loan to commit to, details like interest rates, monthly repayment values, bank charges and other policies should be considered.

To learn more about what you should focus on when obtaining a mortgage loan, read our article on the 16 vital facts you need to know before applying for a housing loan.

Documents needed to apply for a housing loan

  • Details of income
  • Title Deeds, Extracts (Paththiru) and approved Survey Plan (drawn within the last 10 years)
  • Nonvesting, Ownership, Street Line and Building Line certificates from local authority.
  • Tax receipts for the last quarter and Assessment Certificate (Waripanam) from the local authority.
  • Bill of Quantities (BoQ) (if building a house).
  • Approved condominium plan, tripartite agreement with power of attorney favouring the bank (if buying a condominium).
  • Copy of NIC (National Identity Card) or Passport.
  • Last 3 months’ salary slips by the company.
  • Letter from your employer confirming your particulars.
  • Statements of bank account (s) to which the salary was remitted during the last 3 months.
  • Details of any other loans that you currently have.
  • Marriage Certificate (for joint applicants)

What will happen once your loan is approved ?

After the bank approves your mortgage loan application, they may also require follow-up documents to be submitted before granting you the approved loan amount.

  • Mortgage agreement

The mortgage agreement may be signed along with a lawyer’s attestation to confirm its authenticity.

  • Insurance on the borrower’s life

To minimize the risk of the loan in case of death, the bank requires that insurance on the borrower’s life is obtained.

  • Insurance on the title

In case there are issues or uncertainties with the title of a property that the borrower hasn’t managed to clear off, the bank shall also request for insurance to be obtained on the title of the property.

  • Insurance on the property

If the mortgage loan is obtained on a property with a building that is already constructed, documents related to the insurance taken on the particular building should also be presented.

  • Terms and conditions of the bank

The Document with the terms and conditions presented by the bank should be signed

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