Arab Bank Home/Mortgage Loan Calculator Criteria in UAE

Arab Bank home loans are among the most preferred options in the UAE for individuals seeking to own a home in the country. These loan plans have several benefits that ensure easy availability of properties without spending much from your funds directly.

Besides the loan, Arab Bank also provides a home loan calculator on its website, which is an essential tool to calculate the equated monthly instalments based on the inputs of the applicant. If you know your loan amount, interest rate, and the repayment tenure of your loan plan, calculating the equated monthly payments become much easier and more transparent.

Table of Content

What is an Arab Home Loan Calculator?
How Does the Arab Bank Home Loan Calculator Work?
Factors Affecting the Calculation of Arab Bank Home Loan Monthly Instalments

What is an Arab Home Loan Calculator?

Individuals seeking to obtain a loan from the Arab Bank can make use of the Arab bank loan calculator for mainly three purposes - to calculate the terms of auto loans, home loans, and personal loans. One such specific calculator available on the website is the Arab Bank home loan calculator.

Home loan calculator is available on the official website of Arab bank and can be used multiple times without much effort to calculate the equated monthly payments for your home loan plan depending on factors like interest rate, loan amount, and loan period.

The following input would be required from your end to get the output -

Loan Type
Loan Amount
Loan Tenure
Interest Rate

Once you enter this information, you will get the details of monthly instalments, effective interest rate, and processing fees in an instant.

How Does the Arab Bank Home Loan Calculator Work?

The home loan calculator of Arab bank is rather easy to use. One can simply follow a few simple steps to get the required results to appear on their screens in a few seconds -

Visit the official website of Arab bank.
Under the tab ‘consumer banking’, select the option of ‘housing loan’
Once you are on this page, you can select the home loan calculator and select housing loan out of the options available in the drop-down list.

After accessing this calculator, you can fill in the few required details and click on the apply button. All the required information, i.e., the applicable monthly instalment, total interest amount paid, and other details will be available on your screen.

Benefits of Arab Home Loan Calculator

Arab home loan calculator, as mentioned earlier, is user-friendly and caters to the needs of different people in some simple steps. Some of the advantages of the Arab home loan calculator are -

Easy calculation- Manual computation of monthly payments can often prove complex, with lengthy calculations along with tedious formulae involved. In such scenarios, the Arab bank home loan calculator comes in handy. You can quickly get the estimated figure of your monthly instalments by just entering the specified information, with the calculator making the necessary calculations to ease up your burden of calculation.
Accurate Results- Owing to the complexity of the details involved, making an error while manually calculating your home loan monthly instalment is often possible. With this online tool, however, there is no scope for error. All the results will be accurately displayed as per your entered information.
Saves Time- One of the crucial critical advantages of the Arab bank home loan calculator, resulting from the previous two points, is that it saves time and is more reliable. Besides displaying results instantly, the calculator allows you to modify the repayment tenure and the loan amount multiple times and quickly. Thus, you can make multiple calculations without spending much time or effort.
Plan budget- Once you have an estimate of the monthly payments that will be applicable on the loan of your choice, you will be able to plan your budget better and avoid any financial problems in the future.

Factors Affecting the Calculation of Arab Bank Home Loan Monthly Instalments

Various factors can affect the calculation of the monthly instalments of your Arab Bank home loan. Discussed below are the major ones:

1. Loan Type- Arab Bank provides four different types of loans tailoring the needs of its customers:

Ready property loan
Non-resident Jordanians home loan
Non-resident Lebanese home loan
Non-resident Palestinians home loan

One can choose the type of loan as per their requirements as well as eligibility. However, with each category having different interest rates, down payment requirements, and other factors, the monthly instalment amount that you will get for your Arab Bank home loan can differ as per each category.

2. Loan Repayment Tenure- Loan repayment tenure simply refers to the period in which you will need to pay the loan amount in full across multiple instalments. Longer loan tenures mean lower monthly instalments amounts, as the number of instalments would increase. However, it must be kept in mind that shorter tenures, while bringing higher instalments, also reduce the total interest amount.

3. Loan Amount- The loan amount is simply the funds that you obtained from the bank. This amount has to be repaid with applicable interest. The loan amount is based on the borrower's credit Score, income, the price of the property, and so on.

The impact of the loan amount on the instalment amount is fairly straightforward - a higher loan amount would mean a higher loan instalment amount.

4. Interest Rate-The interest amount for a home loan is calculated as per the total loan amount, with the rate at which it is computed being referred to as the interest rate. As a higher rate implies a higher interest amount, you can expect a high instalment amount with high interest rates.

5. Down Payment- The sum of money that buyer pays at the time of purchase of the home using their own funds is referred to as the down payment. In the UAE, most banks finance properties up to 80% of their value, meaning that the remaining 20% is paid by the applicant in the form of a down payment.

An increase in the down payment means that you would be covering more amount of the purchase by yourself. This directly leads to a decrease in the loan amount, consequently leading to a reduced instalment amount for you.

Key Takeaways

Manual calculations are time-consuming as well as painstaking. A better choice when making calculations regarding your home loan would be the Arab home loan calculator. This online tool can help you estimate the instalment amount as per your loan details.

You can simply provide a few details related to your loan amount, repayment tenure, interest rate, and more to get the key details about your loan displayed on your screen. The figures shown by the calculator would be accurate and give you a fair idea of how you can plan your finances and take the budget-friendly home loan.

Note: As the terms and conditions on which the loan is approved by the bank can be different from the general terms provided in the calculator, one can expect slight variations in the actual instalment amounts on getting the loan.