Home Loan in UAE
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Home Loans Interest Rates in UAE
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Advantages
- Free mastercard credit card
- 5% cashback on the credit card
- Upgrade to premium banking
Features
- Mortgage Finance is provided at a fixed interest rate of 2.58%
- Minimum salary of AED 25000 is required
- Mortgage Finance is provided at a reducing interest rate of 4.5%
Features
- This follows shariah principles
- Both UAE Nationals and Expats are eligible
- Minimum salary of AED 25000 is required
- Mortgage Finance is provided at a fixed interest rate of 2.58%
- Mortgage Finance is provided at a reducing interest rate of 4.5%
- Maximum loan amount provided is AED 10000000
- Property and Life insurance is mandatory
- 1% of the total loan amount is charged as processing fees
- The loan is provided for a maximum tenure of 25 years
- 20% of the property value should be paid as the down payment
- 1% of outstanding loan amount is charged on early settlement of the loan
Benefits
- Provides customized solutions according to the needs of a customer
- Upgrade to premium banking
- Provides life and property insurance at competitive rates
- Complimentary World Mastercard Credit Card
- Can get 5% cashback on the usage of the free credit card
- Competitive interest rates
Advantages
- 0% processing fees
- Salary transfer is not required
- Can add a co-applicant to improve eligibility
Features
- Provides high loan amounts
- Both self-employed and salaried individuals are eligible
- Age limit of 20-70 years are eligible
Features
- Provides high loan amounts
- Both self-employed and salaried individuals are eligible
- Age limit of 20-70 years are eligible
- Minimum salary of AED 7000 is required
- The flat interest rate on this loan is 1.79%
- The reducing interest rate of this finance is 3.24%
- The loan is provided on the maximum tenure of 25 years
- No processing fees are charged
- Maximum finance of AED 50000000 is provided
- Down payment of 20% is required
- 1% of the total loan amount is charged as early settlement fees
Benefits
- 80% of property value is provided as loan amount on
- 0% of processing fees are charged
- Salary transfer to DIB account is not mandatory
- Provides loan for both residential and commercial property
- Islamic insurance is offered
- Very low-profit rates
- Can add a co-applicant to increase the chance of eligibility
Features
- Ready Villas or apartments registrable with Lands department
- Age limit to apply for the loan for UAE Nationals between 21 and 65 years of age (at the time of loan maturity) and for Expats between 21 and 60 years of age (at the time of loan maturity)
- For the salaried individual minimum length of service of 6 months is required and for the self-employed individual Minimum length of 3 years in business
Features
- Ready Villas or apartments registrable with Lands department
- Age limit to apply for the loan for UAE Nationals between 21 and 65 years of age (at the time of loan maturity) and for Expats between 21 and 60 years of age (at the time of loan maturity)
- For the salaried individual minimum length of service of 6 months is required and for the self-employed individual Minimum length of 3 years in business
- For salaried individuals 3 months bank statement is required and for self-employed individuals, original 12 months company and personal bank statement is required to be submitted
- Minimum salary of AED 20,000 is required
- The mortgage loan is provided at an interest rate of 3.99%
- The reduction rate is 3.99%
- It is not mandatory to transfer your salary
- It is mandatory to have Life and Property Insurance before applying for this finance
- Finance up to AED 10,000,000
- Required to put 25% down payment for this finance
- The early settlement fee is 1% of the outstanding amount to date
- The reduction rate and the flat rate is 3.99% and 2.2%. This denotes that the computation done was a division of the reduction rate by 1.813.
Benefits
- Loan available to both salaried and self-employed individuals
- Finance for ready villas and apartments
- Finance repayment period of up to 20 years for expats
- Deferment facility - Max 2 times a year without any additional profit
- Competitive profit rates
- 0% processing fees on buyouts
- Release cash against your fully paid property.
Advantages
- Avail buyout loan facility
- Low processing fees on salary transfer
- Salary transfer is optional
Features
- Home Finance is provided at a fixed interest rate of 1.79%
- Minimum salary of AED 20000 is required
- Home Finance is provided on a reducing interest rate of 3.29%
Features
- Follows both conventional and Islamic banking principles
- Both self-employed and salaried expats are eligible
- Minimum salary of AED 20000 is required
- Home Finance is provided at a fixed interest rate of 1.79%
- Home Finance is provided on a reducing interest rate of 3.29%
- Salary transfer to United Arab Bank account is optional
- Maximum loan amount provided is AED 10000000
- Life and property insurance is required
- 1% of the total loan amount is charged as processing fees
- The loan is provided for a maximum tenure of 25 years
- 20% of the property value should be paid as the down payment
- 1% of outstanding loan amount is charged on early settlement
Benefits
- Low-interest rates
- Salary transfer is not mandatory but provides additional benefits for transferring your salary
- Low processing fees on salary transfer
- Can avail buyout loan facility
- Competitive insurance rates
- Quick processing of loan
Advantages
- Property insurance is not mandatory
- Salary transfer is not compulsory
- Free credit card
Features
- Home Finance is provided at a fixed interest rate of 3.85%
- Minimum salary of AED 15000 is required
- Home Finance is provided on a reducing interest rate of 6.99%
Features
- Expats from Jordan, Palestine, and Lebanon are eligible
- Minimum salary of AED 15000 is required
- Home Finance is provided at a fixed interest rate of 3.85%
- Home Finance is provided on a reducing interest rate of 6.99%
- Salary transfer to Arab Bank account is not required
- Maximum loan amount provided is USD 500,000
- Getting your property insured is not mandatory
- 1% of the total loan amount is charged as processing fees
- The loan is provided for a maximum tenure of 20 years
- 25% of the property value should be paid as the down payment
- 2% of outstanding loan amount is charged on early settlement
Benefits
- Provides good customer assistance
- Salary transfer is optional
- Provides finance to purchase a property in Jordan, Palestine, and Lebanon
- Complimentary Credit Card is provided
- Quick processing
- Competitive insurance rates
Advantages
- Salary transfer is not mandatory
- Get pre approval
- Can avail buyout facility
Features
- Home Finance is provided at a fixed interest rate of 4%
- Minimum salary of AED 15000 is required
- Home Finance is provided on a reducing interest rate of 7.25%
Features
- Follows Islamic banking principles
- Minimum salary of AED 15000 is required
- Home Finance is provided at a fixed interest rate of 4%
- Home Finance is provided on a reducing interest rate of 7.25%
- Salary transfer is optional
- Maximum loan amount provided is AED 250,000
- 1% of the total loan amount is charged as processing fees
- The loan is provided for a maximum tenure of 25 years
- 20% of the property value should be paid as the down payment
- Provides loan for both commercial and residential properties 1% of outstanding loan amount is charged on early settlement
Benefits
- Follows Islamic banking laws
- No salary transfer is required
- Low-profit rates
- Can get pre-approval details
- Provides loan for commercial properties also
- Buyout loan facility is available
- Quick and hassle free documentation
Benefits
- High finance is provided
- Self-employed individuals are eligible
- Low down payment requirement
- Minimum salary of AED 20000 is required
- Home Finance is provided at a fixed interest rate of 2.2%
- Home Finance is provided on a reducing interest rate of 3.99%
- You are required to transfer your income to Emirates NBD for this finance.
- The loan is provided for a maximum tenure of 25 years
- Both life insurance and property insurance is mandatory
- 1% of the total loan amount is charged as processing fees
- Maximum loan amount provided is AED 15000000
- 20% of the property value should be paid as the down payment
- 1% of outstanding loan amount is charged on early settlement
Benefits
- High finance is provided
- Self-employed individuals are eligible
- Low down payment requirement
- Low rates on property insurance and life insurance
- Can know the approved loan amount details in prior
- Very quick loan approval
Advantages
- Get pre-approved facility
- Low insurance charges
- High finance
Features
- Home Finance is provided at a fixed interest rate of 2.2%
- Minimum salary of AED 10000 is required
- Home Finance is provided on a reducing interest rate of 3.99%
Features
- Approval In principle is provided
- Minimum salary of AED 10000 is required
- Home Finance is provided at a fixed interest rate of 2.2%
- Home Finance is provided on a reducing interest rate of 3.99%
- Salary transfer to Emirates NBD account is not required
- The loan is provided for a maximum tenure of 25 years
- Both life insurance and property insurance is mandatory
- 1% of the total loan amount is charged as processing fees
- Maximum loan amount provided is AED 15000000
- 20% of the property value should be paid as the down payment
- 1% of outstanding loan amount is charged on early settlement
Benefits
- High finance is provided
- Low down payment requirement
- Low rates on property insurance and life insurance
- Can know the approved loan amount in prior
- Salary transfer is not mandatory
- Hassle free documentation
Features
- For salaried people between 21 and 65 years of age are eligible to apply for this scheme
- For self-employed people between 21 and 70 years of age(at loan maturity) are eligible to apply for this scheme
- For the salaried individual minimum length of service of 6 months is required and for self-employed individual minimum work experience of 3 years in business
Features
- For salaried people between 21 and 65 years of age are eligible to apply for this scheme
- For self-employed people between 21 and 70 years of age(at loan maturity) are eligible to apply for this scheme
- For the salaried individual minimum length of service of 6 months is required and for self-employed individual minimum work experience of 3 years in business
- For salaried individuals 3 months bank statement is required and for self-employed individuals, original 12 months company and personal bank statement is required to be submitted
- Minimum salary of AED 20,000 is required
- Provides financing at an interest rate of 3.99%
- The reduction rate and the flat rate is 3.99% and 2.2%. This denotes that the computation done was a division of the reduction rate by 1.813.
- Finance up to AED 15,000,000
- Required to put 20% down payment for this finance
- Early settlement fee is 1% of the outstanding loan amount
Benefits
- Refinance your ready property to get easy access to liquidity
- Can invest in under construction property
- You get repayment period up to 25 years
- You get to repay up to 15% of your Outstanding loan every year without paying any additional charges or fees
- You get dedicated Staff to assist you further
- 0% processing fee on Buyouts
Advantages
- Salary transfer is not mandatory
- High benefits on salary transfer
- Low/no partial settlement fees
Features
- Both salaried and self-employed individuals are eligible
- Minimum turnover of AED 2 Million is required for self-employed individuals
- Minimum age of 21 yrs is required
Features
- Both salaried and self-employed individuals are eligible
- Minimum turnover of AED 2 Million is required for self-employed individuals
- Minimum age of 21 yrs is required
- Additional earnings must be verified
- Minimum length of service of 3 months(UAE Nationals) and 6 months(Expats) is required, salaried individuals
- Follows takaful laws
- Minimum salary of AED 10000 is required for salaried individuals
- The finance is provided at a flat rate of 2.06%
- The finance is provided at a reducing rate of 3.75%
- Salary transfer is not required. But additional benefits are provided on the salary transfer
- Maximum tenure of 25 years is provided
- Insurance is provided
- 0% processing fees
- Maximum finance of AED 20000000 is provided
- Down payment of 20% of the property value is required
- The early settlement fees are 1% of the approved loan amount
Benefits
- Additionals benefits like ADIB Priority status, finance for additional costs are provided
- Can add a joint account holder
- Buyout loan facility is available
- A grace period of 6 months is provided for salaried individuals
- No processing fees
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 Mortgage Loans
Home Loans are categorized based on how interest is charged. If you are considering taking out a home loan then the thing you should know is how you are going to use the property.
To understand in detail about all this you need to know the types of home loans in the UAE. The types of Home Loans in UAE are discussed below
Types of Mortgage Loans in UAE
The types of mortgage loans are fixed rate of interest mortgage and variable rate mortgage, remortgage loan, off set mortgage, investment mortgage, non resident mortgage.
Fixed rate of interest mortgage or Fixed-rate Home Loans
You get a guaranteed rate of interest for a fixed term and this will range from 1 to 5 years or more depending on the bank you prefer to take loan.
Monthly installments will be constant throughout the period of the loan term because the interest rate is fixed under fixed rate of interest.
- Suppose if EIBOR is increased then the fixed interest rate will be proved as a low cost option.
- Suppose if EIBOR is decreased then you will be ending up paying higher interest on fixed rate.
Variable rate of interest mortgage or Floating-rate Home Loans:
In this type of mortgage loan the borrower will pay interest that will increase and decrease with EIBOR.
- Suppose if the EIBOR increases then the interest rate will increase and your monthly payment amount will increase.
- Suppose if the EIBOR falls then interest rate will decrease and your monthly payment will fall down.
There are two categories of variable rate of interest mortgages: Discounted rate mortgage and Capped Mortgage.
Discounted Mortgage:
Discounted Mortgage will have variable interest which has a setting of a lower interest rate than standard variable rate. These discounts are applied for a period of 2 to 5 years but there are some discounts applied for life lifetime of the deal.
Capped Mortgage:
A threshold on the variable interest rate is called a capped mortgage rate. Interest rates have a ceiling and they do not change. The interest rates are limited only for a period generally 2 to 5 years.
Remortgage:
When the borrower takes a new mortgage loan to repay an existing mortgage loan it is called remortgage. This is also called refinancing where the existing mortgage loan will be paid off and a new loan will be continued. The benefit will be rotation of cash for the borrower.
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.
Use our UAE Mortgage Calculator to Calculate your Mortgage Loan Installments.
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 Islamic Bank
- Dubai Islamic Bank
- Emirates NBD
- HSBC Middle East Ltd.
- Mashreq Bank
- First Abu Dhabi Bank
Frequently Asked Questions
⭐ 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.
⭐ 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.
⭐ 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.
⭐ 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.
⭐ 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.
⭐ 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.
⭐ 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.