FAB Mortgage Loan for Residences and Investments in UAE

Established in 2017, FAB, or the First Abu Dhabi Bank, has quickly become one of the most prominent banks in the UAE as well as in several other countries. While the headquarters of First Abu Dhabi Bank is located in Abu Dhabi, several branches of the bank are spread all over the UAE. FAB deals with both retail and corporate finance and banking services, which includes everything from bank accounts to credit cards and loans. FAB mortgage home loans for residences and investments are some of the most popular products of FAB currently, with residents allowed to own properties in Dubai now.

This particular type of FAB home loan is offered to buy properties that are either meant to be used for residence or to be rented out as a retail investment venture. The article below covers all the essential aspects related to this type of FAB mortgage loan. 

Features and Benefits of FAB Home Loan for Residences and Investments in the UAE 

• Maximum finance limit - up to AED 20 million
• Flexible loan repayment tenure - up to 25 years
• Competitive interest rates - reducing rates starting from 0.55%+3-month EIBOR variable in the first year and 1.25%+3-month EIBOR variable starting the second year
• Minimal processing fee - 0.5% of the finance amount (exclusive of VAT); no processing fee for buyout loans
• Finance amount of up to 85% of the property value for first-time home buyers
• No charges on approval-in-principle
• No early settlement fee
• Monthly salary requirement
  • For salaried individuals: AED 15,000
  • For self-employed individuals: AED 25,000
• Shariah-compliant product variants available

Note 

• The property works as the security against the loan - if you fail to repay the loan, you can lose your property.
• If you opt for refinancing the loan, it may take longer for you to repay it and you may end up paying more interest/profit.
• If you don’t keep up with the repayments/payments, your account can go into arrears. This can affect your credit Score which would restrict your access to financing in the future.

Eligibility Criteria for FAB Mortgage Loan for Residences and Investments in UAE

• Nationality: FAB mortgage loans for residences and investments can be taken by both UAE residents and citizens. However, it must be remembered that all applicants must possess all the supporting documents related to identification like a Passport, Visa, Emirates ID, and so forth. 
• Age: Any UAE citizen or resident older than 21 years of age can apply for a FAB mortgage loan for residences and investments in the UAE. The maximum age limit for getting a FAB home loan in UAE is 65 years, although this specific limit can vary as per the nationality and monthly income. 
• Employment Status: FAB mortgage loans for residences and investments can be taken by both salaried and self-employed individuals in the UAE if they meet the minimum salary requirements. 
• Salary Requirements: A minimum salary of AED 15,000 is required to get a FAB mortgage loan for residences and investments in the UAE. This requirement applies to both UAE residents and individuals, whether salaried or self-employed.

Interest Rate Applicable for FAB Home Loan for Residences and Investments in the UAE 

To turn your dream to own a home into reality, the FAB Home Loan for Residences and Investments in the UAE provides a variable interest rate starting from 0.55%+3 months EIBOR variable for the first year and 1.25%+3 months EIBOR variable starting from the second year at a reducing rate. 

How to Apply for FAB Mortgage Loan for Residences and Investments in UAE?

Applying for your FAB home loans for residences and investment is a fairly easy process. You can utilise a number of online platforms to send in your application or apply for a loan using offline methods. Given below is a description of application methods for all available platforms in the UAE:

Via Policybazaar.ae

• Visit policybazaar.ae and head to the home loan section.
• Once you are on the required page, find the lead form on the right. Fill up the form with your basic information.
• You will be redirected to our quotes page once you submit the lead form. 
• Compare and choose the FAB home loan in UAE for residence and investments with other plans for a home loan in UAE. Select the one that you like the best and move forward with your application. 
• Click or tap on the ‘apply now’ button here, which will redirect you to the application form.
• Enter the required information in the designated spaces. 
• Attach all the required documents with the form and submit. 
• The application will be immediately sent to the bank. You will receive a call once the bank has verified your information and eligibility for FAB home loans in the UAE. 

Via the Official FAB Website

• Go to the official website of First Abu Dhabi Bank and move to their home loan and mortgage section. 
• Scroll down to find the different types of loans offered by the bank. Find FAB home loans for residences and investments in the UAE from this list. 
• Read the important information listed on the page and proceed further to apply.
• Click on the ‘apply now’ button and start filling out the application using your personal information and required details. 
• Attach the required documents in scanned form and proceed to submit the form. 
• Once FAB has gone through your application, you will receive a call about the application and whether you have been approved as a borrower. 
• If you have been approved, you can take the loan procedure further with the executive assigned to your case. 

Via FAB branches

• If you want to submit your FAB mortgage loan for residences and investment in UAE application offline, simply find a nearby branch office of FAB and make arrangements to visit. 
• As you will need all required documents in physical form here, you should make sure that you have all the documents ready before going to the branch. 
• Connect with a home loan executive at the branch and obtain an application form.
• Fill out the form, attach the documents, and submit them all. 
• An executive from the bank will call you once your application is viewed and analysed for eligibility. 
• Take the loan procedure further from there once you are approved for the loan. 

Note: Whether you apply online or offline, you will be required to submit a processing fee when you send in the application. The processing fee for a FAB home loan in UAE for residences and investment is 1.05% of the loan amount you have applied for. This includes 5% VAT as well. 

Documents Required for FAB Mortgage Loan for Residences and Investments in UAE

One should understand that the documents required to get a FAB mortgage loan for residences and investments can differ as per your employment type and other financial considerations. Nevertheless, the documents generally requested by the bank when you apply for FAB home loans in the UAE are:

For Salaried Individuals 

• Emirates ID with a copy 
• Original passport as well as a valid resident Visa for UAE residents. If the Visa was stamped on an older passport, you will need to submit that as well. 
• Proof of salary in the form of a salary certificate or certificate of employment from your employer mentioning your salary 
• Bank statements for the past 6 months if you don’t opt for transferring your salary to FAB – this won’t be required if you already have a salary account in FAB 

For Self-Employed Individuals

• Original Emirates ID and a copy of the same 
• Original passport with a valid resident’s Visa. If your visa was stamped on an older passport, make sure you have that as well. 
• A copy of the trade license of your business or company 
• MoM – Memorandum of Association with all the amendments applicable
• Bank statement for the past 6 months
• Audited financial statements of the company for the past two years

For Joint Borrowers of the Loan

• Passport of the co-borrower 
• Income or salary proof of the borrower
• If the co-borrower for your loan is a business entity, documents like a Memorandum of Association and trade license are also required to be submitted 
• If the co-borrower business entity is a partnership, the passport of all involved partners in the business shall also be submitted

FAB Mortgage Loan for Residences and Investments in UAE Schedule of Fees and Charges

Why Should You Choose FAB Mortgage Loan for Residences and Investments in UAE?

• Reduces Financial burden: Offering a rather high loan amount, FAB home loans in UAE for residences and investments are ideal if you wish to lighten your immediate financial burden of buying a house. Such a high loan amount ensures that you do not have to use your life savings to buy a new property with FAB home loans in UAE. Additionally, if you have bought the property for investments, the loan helps you build your revenue sources more swiftly. 
• No Salary Transfer Required: One of the best things about FAB mortgage loans in UAE is that you do not have to transfer your salary to FAB to get your loan. And while there are several benefits of having a salary account with FAB for your home loans, it is not mandatory. You can make an informed choice flexibly and choose your loan type – with or without salary transfer. 
• Longer Loan Tenures: FAB mortgage loans for residences and investments come with up to 25 years of loan tenure. You can choose any tenure length that suits your requirements between 2 years and 25 years. While a  shorter tenure would mean that you will be rid of your repayment responsibilities quickly, longer loan tenures will allow you to repay your loan with smaller equal monthly payment amounts. 
• Flexible Financing Options: FAB home loans in UAE are available to help you get your dream property whether it is all built and ready to be used or still under construction. You can use your FAB home loans in UAE to purchase your property regardless of its completion status. 
• Easy and Swift Processing: As FAB prioritises the swift processing of all home loan applications, it ensures an easy borrowing procedure for all customers. The processing of your application merely takes a few hours to get processed. 
• Joint Borrowing Facility: With the joint-borrowing facility of FAB home loans in UAE for residences and investments, you can share your debt with another individual. The process of joint borrowing is similar to that of taking a loan individually. 

Terms and Conditions Associated with FAB Home Loan for Residences and Investments in the UAE 

Here are some terms and conditions related to the FAB Home Loan for Residences and Investments in the UAE -

• When you apply for a Home Loan from FAB or secure the loan from the bank, you represent and assure the bank that -
• The property is in your name.
• You are the sole legal and beneficial owner of the property.
• You have not received any notice of any adverse claim made by another person on your property.
• There is no breach of any law that could adversely affect the value, saleability, or use of the property.
• You should submit all the forms, documents, and proofs with the bank related to securing the home loan.
• You should inform the bank in case -
• You become unemployed or lose your primary income source.
• You lose your resident status in the UAE.
• When you fill in the application form, you agree to pay all the charges applicable in the provision of the Mortgage Loan. 
• All the instalments paid to the bank are non-refundable and cannot be applied as a credit against any other amount due to the bank.
• You would need to pay the mortgage loan by paying the monthly instalments on a pre-decided payment date.

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