Home Loan in Dubai, UAE

Home Loans Interest Rates in UAE

Minimum Salary

Interest Rate

Loan Amount

Reducing Rate

RAKBANK Home in one

Interest Rate

3.49%

Flat Rate

1.92%

Minimum Salary

AED 15000

Reducing Rate

3.49%

Max Loan Amount

AED 18000000

Down Payment

20%

Repayments Up To

25

Early Settlement Fee

1%

3.49%

Interest Rate

1.92%

Flat Rate

AED 15000

Minimum Salary

AED 18000000

Max Loan Amount

20%

Down Payment

25

Repayments Up To

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Emirates NBD Home Loan for UAE National

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 10000

Reducing Rate

3.99%

Max Loan Amount

AED 5000000

Down Payment

20%

Repayments Up To

25

Early Settlement Fee

1%

3.99%

Interest Rate

2.2%

Flat Rate

AED 10000

Minimum Salary

AED 5000000

Max Loan Amount

20%

Down Payment

25

Repayments Up To

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Emirates NBD Home Loan for Self employed UAE Nationals

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 20000

Reducing Rate

3.99%

Max Loan Amount

AED 15000000

Down Payment

20%

Repayments Up To

25

Early Settlement Fee

1%

3.99%

Interest Rate

2.2%

Flat Rate

AED 20000

Minimum Salary

AED 15000000

Max Loan Amount

20%

Down Payment

25

Repayments Up To

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CBD Ijarah Home Lease for UAE Nationals

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 20000

Reducing Rate

3.99%

Max Loan Amount

AED 15000000

Down Payment

20%

Repayments Up To

25

Early Settlement Fee

1%

3.99%

Interest Rate

2.2%

Flat Rate

AED 20000

Minimum Salary

AED 15000000

Max Loan Amount

20%

Down Payment

25

Repayments Up To

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Abu Dhabi Finance Essence Fixed Home Loan- Dubai and Abu Dhabi properties only

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 10000

Reducing Rate

3.99%

Down Payment

25%

Repayments Up To

25

Early Settlement Fee

2%

3.99%

Interest Rate

2.2%

Flat Rate

AED 10000

Minimum Salary

25%

Down Payment

25

Repayments Up To

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Amlak Finance Amlak Ijarah

Interest Rate

7.25%

Flat Rate

4%

Minimum Salary

AED 15000

Reducing Rate

7.25%

Max Loan Amount

AED 10000000

Down Payment

20%

Repayments Up To

25

Early Settlement Fee

1%

7.25%

Interest Rate

4%

Flat Rate

AED 15000

Minimum Salary

AED 10000000

Max Loan Amount

20%

Down Payment

25

Repayments Up To

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ADCB Home Finance for Expats

Interest Rate

3.25%

Flat Rate

1.79%

Minimum Salary

AED 15000

Reducing Rate

3.25%

Max Loan Amount

AED 15000000

Down Payment

25%

Repayments Up To

25

Early Settlement Fee

1%

3.25%

Interest Rate

1.79%

Flat Rate

AED 15000

Minimum Salary

AED 15000000

Max Loan Amount

25%

Down Payment

25

Repayments Up To

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Abu Dhabi Finance Essence Fixed Interest Rate Home Loan- Dubai Properties only

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 20000

Reducing Rate

3.99%

Down Payment

25%

Repayments Up To

25

Early Settlement Fee

2%

3.99%

Interest Rate

2.2%

Flat Rate

AED 20000

Minimum Salary

25%

Down Payment

25

Repayments Up To

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CBD Mortgage Loans for Expats

Interest Rate

3.99%

Flat Rate

2.2%

Minimum Salary

AED 20000

Reducing Rate

3.99%

Max Loan Amount

AED 10000000

Down Payment

25%

Repayments Up To

20

Early Settlement Fee

1%

3.99%

Interest Rate

2.2%

Flat Rate

AED 20000

Minimum Salary

AED 10000000

Max Loan Amount

25%

Down Payment

20

Repayments Up To

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Abu Dhabi Finance Non Resident Home Loan (Compass)- Abu Dhabi Properties only

Interest Rate

4.5%

Flat Rate

2.48%

Minimum Salary

AED 20000

Reducing Rate

4.5%

Down Payment

25%

Repayments Up To

25

Early Settlement Fee

1%

4.5%

Interest Rate

2.48%

Flat Rate

AED 20000

Minimum Salary

25%

Down Payment

25

Repayments Up To

Hide Explore

What is a Home Loan?

Buying a home is arguably the biggest financial decision in our lives. With ever-increasing real estate prices, it is extremely difficult to purchase a house without seeking financial assistance. Such loans offered by banks or financial organizations to individuals are called ‘Home Loans’. The house is held as a mortgage as security till the loan is repaid. The lending institutions hold the right to claim the mortgaged property in case the borrower fails to repay the loan.

Different types of Home Loans

Home Loans are categorized based on how interest is charged. The two types of Home Loans in UAE are:

  • Floating-rate Home Loans: The interest payable on the Home Loan can change based on certain parameters (ideally EIBOR). These are also called Variable-rate Home Loans.
  • Fixed-rate Home Loans: The interest payable on the Home Loan is fixed for the entire tenure of the loan.

You must talk to the loan advisor before deciding on which type of loans would best suit your needs.

Features of a Home Loan

UAE has seen a surge in home loans in recent times. The banks and financial organizations have become more sensitive to every individual’s need of buying a house and are offering easy and attractive schemes. Some salient features of Home Loans in UAE are:

  • Both UAE and Non-UAE Nationals can get a home loan.
  • Long repayment tenures of up to 25 years.
  • Quick processing and easy documentation.
  • Loans available for residential and commercial properties.
  • Highly competitive interest rates.
  • Flexible repayment options.
  • Affordable processing fees.
  • UAE Nationals can avail of complete Home-finance Solutions.
  • Attractive schemes for expatriates.
  • Co-applications allowed.

Benefits of Home Loan

A Home Loan is the best way to fulfill your dream of owning a house. A house provides a sense of stability and security and is a great investment option too. Some advantages of availing a home loan in the UAE are as follows:

  • Avail free valuation and insurance of the house.
  • Most banks offer free credit cards valid for life.
  • In times of exigencies, you can avail financing of up to 80% of the market value of your property.

Eligibility for Home Loan in UAE

Every bank has its own eligibility criteria which need to be checked individually. However, some basic requirements are as follows:

  • You must be at least 21 years of age when you apply and maximum 65 years of age on the maturity of the loan.
  • Loans are available for both salaried and self-employed individuals.
  • Minimum salary must be around AED 10,000 (again each bank has its own minimum requirement)

Documents required for Home Loan in UAE

As is the case with eligibility, every bank can have its own requirement of documents to process your loan application. Some basic documents needed are:

Salaried Individuals:

  • Passport copy with valid visa
  • Emirates ID Card (Not Required for Non-Resident)
  • Salary Certificate
  • Last six months original bank statements
  • Title Deed Copy
  • MOU Copy
  • Seller Passport Copy

Self-employed Individuals:

  • Passport copy with valid visa
  • Emirates ID Card (Not Required for Non-Resident)
  • Last six months bank statements both personal and company
  • Memorandum and articles of association
  • Audited financial statements of last 2 years
  • Board resolution copy
  • Trade license copy
  • Business profile on company letterhead

If you already have an account with the bank, then the number of documents needed might reduce. Please ensure that you understand this list and arrange all the documents before submitting your application to avoid chances of loan rejection.

Home Loan Charges

There are different kinds of fees and charges associated with home loans, and they can vary with each bank.

  • Processing fee – 0% to 1% of the approved loan amount
  • Pre-Approval fee – 0% to AED 1,000
  • Property valuation fee – AED 0 to 5,000
  • Prepayment fee – 1% of the outstanding amount or AED 10,000, whichever is higher. No pre-payment fee after one year.
  • Buyout fee - 1% of the outstanding amount or AED 10,000, whichever is lower.

Again, it is important to note that these rates can vary and change from time to time. Please check with your loan provider before you apply for the loan.

Home Loan Checklist

Considering the sheer magnitude of the money involved in buying a house, you must plan yourself well to ensure that you don’t make hasty decisions. With Home Loans being easily available, it is possible that you get pulled into buying a house even when you are not ready for it financially. Here is a checklist to help you make the right decision.

  • Research well: In the market with a plethora of options, it is easy to select a product or a service only because it sounds good at that moment. Hence, researching well before approaching a lending institution and being clear about your objectives can help you choose wisely.
  • Estimate your requirement with a buffer: Buying a house does not merely mean paying for the value of the property. There are many more costs involved which need to be carefully considered before you zero down on the amount of loan you require to fulfill this dream. Try to factor in the smallest cost associated with buying the property and allow yourself a small buffer before finalizing the figure.
  • Don’t bite more than you can chew: A home loan is a companion for life. While a tenure of 20/25 years can help bring down the installment amount, it increases the number of years for which you need to keep paying. Ensure that you don’t stretch your limits too far.
  • Down Payment: All institutions have different criteria for down payment. A higher down payment will reduce your loan liability considerably while a lower down payment will give you more funds at hand to work with. Think Well.
  • Fixed-rate or Floating-rate: Don’t try to do these calculations yourself. Ask the concerned official to give you a list of installments payable if you choose either options. Then sit down with an advisor and make a decision that suits your financial standing.

You can always opt for a house that is within your budget than trying to stretch your finances too far. Remember, there is a thin line between courage and foolishness; don’t find yourself on the other side of the line.

Home Loans offered by majority banks

While Home loans are offered by majority banks in the UAE, there are some banks which offer it as a priority product. They are:

  • Abu Dhabi Commercial Bank
  • Abu Dhabi Islamic Bank
  • Dubai Islamic Bank
  • Emirates NBD
  • HSBC Middle East Ltd.
  • Mashreq Bank
  • National Bank of Abu Dhabi

FAQ’s

Q. How do I apply for a Home Loan?

A. A Home loan can be applied for by personally walking into a branch and asking for an application form or downloading the form from the bank’s website. The completed and duly signed application form then needs to be submitted to the bank along with the required documents and a processing fee.

Q. Tax Benefits of taking a Home loan?

A. There are tax benefits to be availed of on both the principal and interest components of the home loan. These laws change yearly. Hence it is advisable to consult a tax advisor to understand it in detail.

Q. Is there a separate Home Improvement Loan?

A. No. You can use the amount from a home loan to make home improvements or home extensions. Be clear about your plans at the time of application.

Q. What is a down payment on a Home Loan?

A. Before sanctioning a loan, the bank does a survey of the property that you are interested in buying. Based on preset parameters, they offer home loans up to 80-85% of the property value. You are expected to pay the balance amount which is also known as down payment. Bank’s do not finance 100% of the property value under any circumstance.

Q. Is taking an insurance on my Home Loan mandatory?

A. Yes. It is mandatory to take an insurance when you apply for a home loan.

Q. I am an expatriate. Is it advisable for me to take a Home loan?

A. Due to the high number of expatriate population in UAE, many banks offer special schemes on home loans for expatriates. Ensure that you research and compare the options available before zeroing in on the bank.

Q. Can I sell the house before the Home Loan is paid off?

A. Most banks will require you to repay the complete outstanding of your home loan (principal + interest) up to the time of sale. Once the loan is cleared, they will release the security on the property.