Home Loan for UAE Nationals

Buying a house in the UAE makes for an excellent investment, whether for the purpose of residing or renting. And while one may choose to finance the purchase by themselves, doing the same with the help of a loan is also an excellent choice, with several options available. 

A home loan indeed helps you take a step closer towards your dream home. A home loan in UAE is an unsecured loan that is ideal to buy houses and properties. However, if you are confused regarding this ‘unsecured’ aspect or the sheer number of options available, you can simply read the article below and find solutions to all your queries. The following sections will help you more with the know-how of home loans and mortgage loans as a UAE national. 

Defining Home Loans for UAE Nationals

A home loan is an unsecured credit that can be used to buy houses and other types of real estate. The 'non-secure' component of the loan implies you won't need to provide any security, as the estate that you purchase with the home loan serves as security.

This aspect is crucial to understand, as its major implication is that if a borrower fails to repay the loan within the agreed-upon time frame, the bank retains the power to take the home purchased with the loan. Consequently, the property you plan to buy itself becomes the collateral. This might remind you of car loans, which are similar to home loans in this regard of security.

Before moving on to the different types of home loans available in the UAE, it is essential to understand mortgage loans (also known as ‘loans against property) as well.

Best Home Loans for UAE Nationals

1. FAB Home Loan for Residences and Investment in UAE

Features of this Home Loan for UAE Nationals

• Maximum duration: 25 years
• Finance Amount: AED 20,000,000
• Inclusions:
  • Reducing Rate: In the first year, interest rates start at 0.49% (along with 3 months EIBOR variable)
  • Settlement Fee: 1% of the remaining mortgage amount(up to AED 10,000)
  • Processing Fee: 0.5% of the amount borrowed 
  • Buyout Loans: Nil

Click here to Apply for this Home Loan for UAE Nationals

2. FAB Islamic Home Finance

Features of this Home Loan for UAE Nationals

• Maximum duration: 25 years
• Finance Amount: AED 20,000,000
• Inclusions:
  • Reducing Rate: Interest rates beginning at 0.49% (besides 3 months EIBOR variable)
  • Early Settlement Fee1% of the remaining mortgage amount  up to a total of AED 10,000 
  • Processing Fee:1%of the amount borrowed
  • Buyout Loans: Nil

Click here to Apply for this Mortgage Loan for UAE Nationals

3. FAB Mortgage Loan for Rental Backed Finance (RBF)

Features of this Home Loan for UAE Nationals

• Maximum Finance: AED 35,000,000
• Maximum Duration: 15 years
• Reducing Rate: 5%
• Settlement Fee: 1% 
• Processing Fee: 1% 

Click here to Apply for this Mortgage Loans for UAE Nationals

Eligibility Criteria for Home Loans for UAE Nationals

For UAE nationals applying for a loan, some requirements as specified by the bank are required to be fulfilled. While each bank has its own criteria, the following are the conditions generally presented to apply for a home loan in UAE:

• An employment tenure of at least six months at the current workplace
• Business is operating for at least two years (for business owners)
• Positive credit history to get the loan easily (and at preferable interest rates)

Documents Required to Home Loan in UAE for UAE Nationals

The actual list of documents required to apply for a mortgage loan in UAE depends on your financial conditions, type of employment, age, and several other factors. However, the following is a list of the major documents requested by providers to approve a mortgage loan in the UAE:

• Emirates ID
• Proof of salary such as salary slips
• Passport Copy
• Bank statement for last 6 months
• Existing address proof
• Trade license (if you are a business owner) 

How to Apply for a Mortgage/Home Loan for UAE Nationals?

You can apply for a home loan in UAE in any of these two ways:

Online (Our website/provider website)

• Step1- You can continue on our site and select the home insurance option.
• Step2- Fill out the online form with quick details to get started on your mortgage application.
• Step3- You will then be able to view the best mortgage and home loan options here based on the details provided by you in the lead form.
• Step4- Select the best plan from these options based on factors like interest rate, the maximum amount provided, processing fee, etc.
• Step6- Carefully fill up the form near your selected plan and submit it along with all the required documents.
• Step7 If your application is approved, you will be contacted by the bank for further processes.

Note: The process will be similar if you directly visit the website of the provider of your choice. However, you can continue on our site to explore the best plans and select one that suits your requirements the best. Offline platforms

• Step8- Visit the branch of the lending or financial institution which is providing your selected plan.
• Step9- Obtain a house loan or mortgage registration form from the office, carefully fill it out, and deposit it at the designated station.
• Step10- When you approach the branch, bring all of your documents with you. The financial institution will process your proposal and check the papers you submit after you submit the application. If you receive approval, the institution will reach out to you.

How to Calculate Mortgage Loans for UAE Nationals in UAE?

While determining your home loan rate of interest and affordable monthly installments is a simple task, it can often be time-consuming. An easy way to make these calculations is to use a house loan calculator. 

In the UAE, home loan calculators are commonly used to estimate the easy monthly installments you will be required to pay when you take the loan. These online calculators take basic details about your UAE mortgage loan and provide you with the estimated monthly payment amount. 

For calculations, most home loan estimators use the mortgage lending rates, loan tenure, and loan amount. The type of rate of interest – fixed or lowering, should be stated as well.

To Sum It Up

As a UAE national, you can easily avail of home or mortgage loans. There are different types of home and mortgage loans in UAE including resident mortgages, fixed-rate home loans, remortgage loans, investment mortgages, and so on. 

The perks of getting a home loan in UAE include a high principle amount, long loan tenure, insurance protection, and transfer facility. To make sure that you have a seamless experience, have all the relevant documents with you like passport, address proof, bank statements, and so on, when applying for a loan