Home Loans for Salaried Employees

A new house is an expensive investment. To ensure that your savings are not depleted in the process, you must take a property loan for the same. Your eligibility for a house loan is based on elements including your credit score, outstanding loans (if any), your age, income, type of employment, location, and more.

Your monthly income or revenue is of the utmost importance among all these factors. To get quick approval for their preferred home loan, salaried individuals applying for a mortgage must have a monthly income that fulfils the bank or loan provider’s requirements. Keep in mind that income also plays a role in the determination of the loan amount – the loan amount of a typical home loan as offered by banks is around 8 times your annual wage. 

To get the best home loan plan by selecting one from the available leading options, you can find out more about the top 5 banks in the UAE that provide home loans for salaried employees by continuing to read this article below.

Features and Benefits of Home Loans for Salaried Employees in UAE

The general features of home loans for salaried employees are discussed below –

• Discounted interest rates are a distinctive aspect of mortgages and home loans in the UAE. A particular discount on the banks' base home loan interest rates is available to first-time buyers and loan recipients owing to this feature. However, it is crucial to remember that it is up to the bank’s discretion as to whether to offer this kind of loan.
• Out of all the available loan types, home loans in the UAE provide the highest loan amounts. In the UAE, you can obtain a home loan for up to AED 35 million or even more in some circumstances.
• In the UAE, borrowers can readily obtain mortgages and home loans with extended repayment terms of 20 to 25 years.
• Mortgage insurance is meant to safeguard home loans in UAE. The borrower must purchase their own life or mortgage insurance or have the bank include it in the loan itself.
• With the balance transfer option, you can transfer the remaining balance on your UAE house loan to other banks. You can also think of getting a re-mortgage if you believe you can receive a lower rate of interest.
• There are mainly two types of mortgage loan rates of interest available in the UAE – fixed and floating (often known as reducing). The fixed mortgage loan interest rate payable in Dubai is assessed on the principal value of your house loan and is often cheaper than lowering rates. 

On the other hand, the decreasing house loan interest rate in the UAE is assessed against the outstanding balance of the loan. Borrowers may select any of the two forms of interest rates as per their needs.

Top UAE Banks that Offers Home Loans for Salaried Employees

Let’s now have a look at the top home loan options provided by the leading banks and financial institutions in the UAE – 

1. Emirates NBD 

Emirates NBD offers two different types of home loans in the UAE for salaried employees. One is for UAE nationals while the other is for ex-pats. 

The details of the two home loans are discussed below – 

Emirates NBD Home Loans for UAE Nationals

• Suitable for purchasing a home or building a home –  option of refinancing available
• Maximum Finance – up to AED 5 Million or 8x your salary
• Financing up to 80% of the value of the property
• Loan Repayment Tenure – up to 25 years
• Minimum Salary Requirement – AED 10,000
• Flat Rate – 3.04%
• Reducing Rate – 5.75%
• Settlement Fee – 1%
• Processing Fee – 1%

Emirates NBD Home Loans for Expats

• Maximum Loan Amount – up to AED 3 Million
• Maximum Loan Repayment Tenure – up to 25 years
• The maximum finance amount offered is 75% of the property value
• Pre-approval facility
• Minimum Salary Requirement – AED 20,000
• Flat Rate – 3.04%
• Reducing Rate – 5.75%
• Settlement Fee – 1%
• Processing Fee – 1%

2. Standard Chartered Bank

Standard Chartered Bank offers two types of home loans in the UAE – Saadiq Home Finance and MortgageOne. Given below are the details of each type of Standard Chartered home loan – 

Saadiq Home Finance

• Maximum Loan Amount – up to AED 18 Million
• Shariah-compliant home loan
• Free property Takaful
• Minimum Salary – AED 15,000
• Maximum Loan Repayment Tenure – 25 years
• Flat rate – 1.66%
• Reducing Rate – 2.99%
• Settlement Fee – 1.05% on the remaining amount (up to AED 10,050)
• Processing Fee – 0.2625% (no balance transfer and blanket evaluation)
• Property Valuation Fee – up to AED 3,625
• Quick loan approval in 5 minutes

SCB MortgageOne Loan

• Maximum Loan Amount – up to AED 18 million
• Maximum Loan Repayment Tenure – up to 25 years
• Minimum Salary Requirement - AED 15,000
• Flat rate – 1.89%
• Reducing Rate – 3.40%
• Settlement Fee – 1.05% on the remaining amount (up to AED 10,050)
• Processing Fee – 0.525% (no balance transfer and blanket evaluation)
• Fixed Rate of 3.4% for the first 2 years
• Zero Processing Fee on Balance Home Loan Transfer
• Option to link your home loan and current account
• Loan amount of up to 80% of the property value

3. HSBC

HSBC is one of the largest global banks with a trustworthy client base of around 40 million customers. Present in the UAE since 1946, the bank offers numerous financial solutions to nationals and expatriates. The two types of HSBC home loans in the UAE offered by HSBC are the following – 

HSBC New Home Loan

• Maximum Loan Amount – up to AED 20 million
• No home loan arrangement fee
• Approval in Principle within 60 minutes
• Maximum Loan Repayment Tenure – 25 years
• Flat Rate – 1.96%
• Reducing Rate – 3.59%
• Settlement Fee – 1%
• Processing Fee – 1%
• Loan for up to 80% of the property value
• Minimum Salary Requirement – AED 15,000
• No requirement for money transfer
• You can request additional funds for home improvement by applying for an equity release
• This loan offers a fixed rate for two years. After this, the interest rate is variable 
• You can have an account with another bank and still be qualified to take an HSBC home loan

HSBC Fixed Interest Rate Home Loan

• Maximum Loan Amount – up to AED 20 Million
• Maximum loan repayment tenure – up to 25 years
• No need for salary transfer
• Zero arrangement fee on home loan
• Fixed rate of interest available for 2, 3, and 5 years
• Approval in Principle within 60 minutes
• Eligible for HSBC Premier Account if the loan amount is more than AED 3 Million
• Flat Rate – 3.59%
• Settlement Fee – 1%
• Processing Fee – 1%
• Minimum salary required – AED 15,000
• Loan for up to 80% of the property value

4. First Abu Dhabi Bank

First Abu Dhabi Bank mainly provides four types of FAB home loans in UAE – for residence and investment in UAE, Islamic home finance, home loans for Non-UAE residents, and Mortgage loan for Rented Backed Finance. Each type of home loan is explained in detail below – 

FAB Home Loan for Residences and Investment in UAE

• Maximum loan amount – up to AED 20 Million
• Maximum loan repayment term – up to 25 years
• Minimum salary required – AED 15,000
• Down payment – 15% of the property value (for UAE national) and 20% of the property value (for ex-pats)
• Early Settlement Fee – as per the CBUAE guidelines (1% + VAT of the remaining mortgage amount up to AED 10,000 + VAT)
• Reducing Rate – Starting from 0.49% and 3 months EIBOR variable in the 1st year
• Shariah-compliant home loan in the UAE
• Processing Fee – 0.5% (exclusive of VAT) of the loan amount 
• No approval in principle fee

FAB Islamic Home Finance

• Shariah-compliant home loan
• Maximum finance up to – AED 20 million
• Fixed rate starting from – 4.79% per annum
  • 2nd year fixed rate – 4.79%
  • 3rd year fixed rate – 4.89%
  • 4th year fixed rate – 4.99%
  • 10th year fixed rate – 5.25%
• Profit rates that start at a 3-month EIBOR of 0.49% for the initial year followed by a 3-month EIBOR of 1.20% per annum from the second year
• Maximum of 85% financing for first-time home loan buyers (UAE nationals) and 80% for ex-pats
• No fee for approval in principle
• Options of new home loans or buyout
• Settlement fee – 1.05% of the remaining loan amount (up to AED 10,500)
• Processing fee – 1% of the overall loan amount
• Minimum salary required – AED 15,000
• Maximum loan repayment tenure of up to 25 years

FAB Home Loans for Non-UAE Residents

• Maximum loan amount of up to AED 10 million
• Maximum loan repayment tenure of up to 20 years
• Fixed rate of 3.49% for the first year
• No processing fee on the buyout loans
• Reasonable variable rate with an alternative to link EIBOR or MBR
• Settlement Fee – 1% (exclusive of VAT) on the loan amount due for payment (up to AED 10,000)
• Processing fee – 1% of the total loan amount
• Minimum salary required – AED 50,000
• Down payment of 50% 
• A Shariah-compliant home loan in the UAE 

FAB Mortgage Loan for Rental Backed Finance

• Loan amount of up to AED 35 million or up to 65% of the value of the property
• 1% settlement fee (exclusive of VAT)
• Property management service from FAB
• Life and property insurance
• Reducing rate of 5% per annum
• Maximum loan repayment tenure of 15 years
• Shariah-compliant home loan in the UAE
• Minimum salary required – as per the rental income computation

5. Mashreq Bank

Mashreq is one of the distinguished banksin the UAE for home loans for salaried employees. It offers loans at competitive rates and flexible repayment tenure. 

The following is the home loan plan offered by the bank -

Home Loan

With Mashreq home loans, you have the freedom to select a finished property from either the main (straight from the developer) or second-hand (re-sale) marketplace in Dubai or Abu Dhabi. Besides that, here are its key features and benefits – 

• High loan sums of up to AED 10 million
• Repayment Loan Tenure: Up to 25 Years 
• Options with attractive interest/profit rates
• Available to UAE citizens and foreign residents
• A large selection of permitted developments available 
• Islamic and conventional home loans available
• Simple & quick documentation processing 
• Flat Rate – 2.99% per annum
• Settlement fee – 1%
• Processing fee -1%
• Down payment of 20%
• Minimum salary required – AED 15,000

Key Takeaways

With the availability of numerous home loan plans, people with steady incomes can easily realise their dream of home ownership. With enticing features and flexible repayment terms of the top home loans in the UAE, buying your own house is now attainable without any major challenges. 

With Policybazaar UAE, you may check out the home loan options from the leading banks in the UAE and select one that suits your needs. Our website has transformed the banking process by putting financial products, including home loans in the UAE, at your fingertips. 

Explore the pool of available home loan possibilities on our user-friendly website and quotes page. You can also ask for help from our customer care team and finance experts if you run into trouble while choosing a plan or at any other step.