Getting a home finance/mortgage in UAE can be tricky and frustrating. There are a number of factors that need to be considered such as the loan tenure(time period a loan will be held), long-term interest rates, early settlement charges, etc. UAE has many banks providing mortgages at competitive rates. However, some banks stand out from the crowd. Procuring a finance from these schemes can help you keep all your liabilities as low as possible in the long run. We’ve listed some of the best home loans in UAE(not in a specific order)
Check: What you need to know before applying for a Home loan in UAE
Banks providing favorable home loans:
| Top 5 home loans in UAE |
|---|
| 1. Abu Dhabi Islamic Bank (ADIB) |
| 2. First Abu Dhabi Bank(FAB) |
| 3. Commercial Bank International (CBI) |
| 4. HSBC Bank |
| 5. National Bank of Ras Al Khaimah (P.J.S.C) (RAKBANK) |
1. Abu Dhabi Islamic Bank (ADIB)
ADIB offers a number of home financing products catering to various clients needs. It provides home loan for both UAE nationals and expats at a competitive rate. It’s home financing products include; owner to owner financing, buyout, developer purchase, construction finance, equity release.
Features of ADIB home loans are:
- Interest rate 3.75%
- Flat rate 2.06%
- Repayments up to 25 months
- Arrangement fee 0
Benefits provided:
- Salary transfer is optional
- 6 months grace period is provided for salary transfer customers
- Can clear 30% of the outstanding loan amount without any partial settlement fees
2. First Abu Dhabi Bank(FAB)
FAB provides mortgage loan for residences, loan for investments.
Features of FAB home loan are:
- Early settlement fee of 1.05%
- New home fixed rate of interest is 3.99% up to 1 year
- Down payment of 20%
Benefits provided:
- Flexible repayment options
- High loan amount
- Provides finance for both completed and under-contruction properties
3. Commercial Bank International (CBI)
CBI offers home finance/mortgage for all completed residential properties, which are entitled to land and mortgage registration anywhere in the UAE.
Features of CBI home loan are:
- For new home loans monthly salary required is AED 15,000
- Processing fee 1% of the loan amount
- Interest rates starting from 2.99% p.a.
Benefits provided:
- Can clear 40% of the outstanding loan amount without any partial settlement fees
- Free property insurance
- Free CBI Rewards Mastercard Credit Card
- Salary transfer is optional
- No processing fee for buyout loans
4. HSBC Bank
HSBC offers home loans at a starting interest rate of 3.24%. It provides home loan for both UAE nationals and expats. The bank does not charge any processing fee or valuation fee for a buyout.
Features of HSBC home loan are:
- Repayments up to 25 Months
- Early settlement fee 0-1%
- Minimum salary AED 15K-20K
Benefits provided:
- Can clear 25% of the outstanding loan amount without any partial settlement fees
- Salary transfer is not required
- Can get pre-approved in 60 minutes
5. National Bank of Ras Al Khaimah (P.J.S.C) (RAKBANK)
RAKBANK offers flexible and affordable home loans in Abu Dhabi, Dubai, and Ras Al Khaimah. They provide home loans at a competitive rate of 3.25%. Both UAE nationals and expats can avail this loan with a minimum monthly salary of AED 15000 for UAE nationals and AED 20000 for expats.
Features of RAKBANK home loans are:
- Down payment of 20%
- Early settlement fee of 1%
- Repayments up to 25 months
Benefits provided:
- Less documentation
- Quick approvals
- Flexible repayment options
Calculate mortgage payments using Mortgage Calculator Dubai
These are some of the home loans handpicked picked from the lot based on their favorability. Every individual has their own criteria or requirement that needs to be addressed, therefore it is advisable that you compare and check different home loans in UAE before finalizing one.
Disclaimer: The finance charge is subject to change at the discretion of the bank.
About the author
Hemanta Bijoy Kaushik is a personal finance writer. Discovering his love for writing, he has written a number of blogs on personal finances and other genres on various digital media platforms. He has completed his MBA from IMT and currently working at HDFC bank as Personal Banker. When he's not writing, you can find him exploring different cuisines and binge-watching TV series. Hemanta hopes to write a novel soon. You can check out his work on www.instagram.com/hemantakaushik
