Housing financing/mortgage lending in the UAE can be difficult and frustrating. Many factors need to be taken into accounts, such as the duration of the loan (loan term), long-term interest rates, and early liquidation commissions. There are many banks in the UAE that provide mortgages at competitive interest rates.
However, some banks are out of the majority. Getting funds from these plans will help you keep your debts as short as possible. We have listed the best home loans in the UAE (not in a specific order).
List of Top Home Loans in UAE
- Abu Dhabi Islamic Bank (ADIB)
- First Bank of Abu Dhabi (FAB)
- Commercial Bank International (CBI)
- HSBC
- Ras Al-Khaimah National Bank (RAKBANK)
- United Arab Bank Home Finance for UAE Nationals
- CBD Salaried Individuals
- Ajman Bank Ready Properties
- Emirates Islamic Binaa Home Finance
- Arab Bank Housing Loan
1- Abu Dhabi Islamic Bank (ADIB)
ADIB provides a variety of household financing products to meet various customer needs. It provides housing loans for UAE nationals and expatriates at competitive prices. Its family wealth management products include; owner-to-owner financing, buyouts, developer purchases, construction financing, and equity offerings. The characteristics of ADIB housing loan are Interest rate of 3.75% and the Flat rate 2.06%. Since the loan repayment is arranged for up to 25 months, it is zero. Benefits: Salary transfer is not required, salary mobilization, with a grace period of 6 months, customers can pay 30% of the outstanding loan amount without paying any commission.
2- First Bank of Abu Dhabi (FAB)
FAB provides housing mortgage loans and investment loans. FAB Housing Loan Characteristics: 1.05% Fixed interest rate on new housing for one year 3.99%, 20% down payment: 20% down payment: Benefits: Flexible repayment methods High loan Funding for built and unbuilt facilities
3- Commercial Bank International (CBI)
The CBI provides housing financing/mortgages to all residential properties that have the right to land and mortgage anywhere in the UAE. The characteristics of CBI housing loan are: For new housing loans, the required monthly salary is AED 15,000 1% of the loan fee, the annual interest rate starts from 2.99%. Benefits provided are that you can clear 40% of outstanding loan amount without any partial settlement fees Free property insurance Free CBI reward MasterCard credit card Payroll transfer is optional No charge for buying out loans
4- HSBC
The initial interest rate for housing loans provided by HSBC is 3.24%. It provides housing loans for UAE nationals and foreigners. The bank does not charge any handling fee or evaluation fee for the acquisition. HSBC Housing Loan Characteristics: Loan term up to 25 months, repayment period 0-1% Minimum salary 15K-20K AED Benefits: 25% of the outstanding loan amount is cleared without any settlement fee. Pre-approved within 60 minutes
5- Ras Al-Khaimah National Bank (RAKBANK)
RAKBANK provides flexible and affordable housing loans in Abu Dhabi, Dubai, and Ras Al Khaimah. They provide 3.25% of competitive housing loans. Both the UAE nationals and foreigners can use this loan. The minimum monthly salary for UAE nationals is AED 15,000, and the minimum monthly salary for foreigners is AED 20,000. RAKBANK housing loan characteristics: 20% of the initial payment, 1% of the initial discount commission, repayment up to 25 months. The benefits provided are you have to submit fewer documents, Quick approval, and flexible repayment methods.
6- United Arab Bank Home Finance for UAE Nationals
The product can be obtained in both conventional and Islamic ways. For your first property, if the property value is less than AED 5 million, the down payment is 20%, and if the property value is higher than AED 5 million, it is 30%. For your second property, the prepayment is 35%. For self-built, the down payment is 50%. The maximum loan amount is 80% of the property value. Repayment period 25 years, you need to meet the following conditions: the minimum wage for UAE nationals is 15,000 dirhams, the foreign national is 20,000 dirhams, and the minimum salary for self-employed persons is 50,000 dirhams. You can apply without transferring your salary. The handling fee is 1% of the financing amount. The early settlement fee is 1% or 10,000 dirhams, whichever is lower, whether through your own source or through another bank. We need to pay 0.40% of life insurance premiums. The rate is fixed at three years. Since then, banks have charged variable rates based on the UAB Retail Basic Rate (RBR).
The relief rate for this financing is 3.69%, while the fixed rate is 1.93%. The calculation method used is the reduction rate divided by 1.911, which is only indicative. Loans provided on all completed properties in the UAE in the United Arab Emirates with proof of title.
7- CBD Salaried Individuals
Prepayment is about 20% the maximum financial repayment period is 25 years. You need an annual salary of at least AED 12,000 per month to be eligible. You can apply without transferring your salary, but if you transfer your salary, you can enjoy interest rate discounts. The handling fee is 1% of the financing amount. A buyout handling fee is 0% Early settlement fees are 1% of the balance or 10,000 dirhams (whichever is lower) (buy out), and 1% of the balance (from the same bank) To use this finance, you must purchase life (0.033) and property (0.04) insurance. The reduction rate starts from 3.54 the deduction rate for this fund is 3.54%, while the equivalent flat rate is 2.18%. The calculation method used is the reduction rate divided by 1.623, which is only indicative. Invest in land and farms only for UAE nationals.
8- Ajman Bank Ready Properties
The finance is in compliance with Sharia law. For your first property, if the property value is less than AED 5 million, the down payment is 25%, and if the property value is higher than AED 5 million, it is 35%. For your second property, the prepayment is 40%. The maximum financial repayment period is 25 years. You need to meet the following conditions: the minimum wage for UAE nationals is 15,000 dirhams, foreigners are 20,000 dirhams, and non-residents are 40,000 per month. You can apply without transferring your salary. The handling fee is 1% of the financing amount, and the maximum amount is AED 35,000.
The early settlement fee of this finance is 3% of the outstanding amount (principal + profit) to date. Banks may, at their discretion, give up all or all undistributed profits. The tax rate for salaried and self-employed persons starts at 3.59%. This is the reduction rate. This is a floating rate (based on the central bank’s 6-month EIBOR rate plus 2.50% bank deposit). The reduction and exemption rate of this fund is 3.59%, while the equivalent fixed interest rate is 1.98%. The calculation method used is the reduction rate divided by 1.814, which is only indicative.
9- Emirates Islamic Binaa Home Finance
The finance is in compliance with Sharia law. UAE nationals must pay a 20% down payment for this financing. The maximum financing amount provided is AED 15,000,000. You need a monthly salary of at least 8,000 dirhams to be eligible. You can apply without transferring your salary. However, to get the best price, you need to mobilize wages the handling fee is 1% of the total financing. However, there is no handling fee for a balance transfer. This financial early settlement fee is 1% of the outstanding amount (principal + profit) to date. Banks may, at their discretion, give up all or all undistributed profits. The insurance premium is 0.35% of the financial amount. The profit margin starts at 3M EIBOR + 1.75% p.a. The interest rate is variable and depends on the central bank’s 3-month EIBOR rate plus bank deposit. The relief rate for this financing is 3.99%, while the fixed rate of equal amount is 2.2%. The calculation method used is the reduction rate divided by 1.814, which is only indicative.
10- Arab Bank Housing Loan
You need to pay a 25% down payment for this product. The national finance of the UAE’s first property; if the property value is equal to or less than AED 5 million, a 20% down payment is required, and if the property value is greater than AED 5 million, a 30% down payment is required. National finance of the UAE’s second or subsequent property; 35% as a down payment. Expatriate finances for the first property; if the property value is equal to or less than 5 million dirhams, a down payment of 25% is required, while for property values greater than 5 million dirhams, a 35% down payment is required. Funds for moving to the second or later property; 40% of the down payment. The maximum financial repayment period is 25 years. You need a monthly salary of at least AED 15,000 to be eligible This is a requirement to transfer your salary. The handling fee is 1% of the loan amount Early settlement fee is 1% [up to AED 10000] Life and property insurance are covered and the cost is 0.03% of the outstanding balance. The one-year interest rate is 3.49% variable, and then 4.5% variable. This ratio is calculated as the reduction ratio. The interest rate is variable and is based on EIBOR plus bank deposits. The relief rate for this fund is 3.49%, and the equivalent fixed interest rate is 1.92%. The calculation method used is the reduction rate divided by 1.814, which is for reference only Any completed property.