Everyone wants to have a house for themselves but buying a house can be a bit extravagant. Saving the money to buy your dream house can take a lot of time, so some people prefer taking a home loan to get their dream home. Instead of spending your money on rent, you could give the same amount as installment, and at the end of your term, the house would be yours.
Home loan comes under the mortgage loan category. In simple terms, you borrow funds from a bank or a lender to buy your house with a fixed interest and tenure. The money is returned to the lender based on equated monthly installments or EMI. The house to be purchased is kept as collateral, and the lender is allowed to acquire money from it if you are unable to pay it off.
Here we have listed down some of the famous home loan options in the UAE for nationals so that you can evaluate and opt for the one that seems good to you.
Emirates NBD is a great option, and it comes under the low salary requirement. It offers:
- Both fixed-rate as well as reducing rate interest
- A loan tenor of up to 25 years.
- The maximum amount that you can borrow is up to 15 million AED.
- Fixed interest of 2.89% and a reducing interest of 5.25% per annum.
- A minimum salary of 10,000 AED is required.
- A down payment of 20% is necessary.
- It also offers a pre-approved loan facility.
First Abu Dhabi Bank (FAB) Home loan
FAB is a good choice as it offers high amounts with a low down payment. Here is everything that you could expect from the bank.
- It offers competitive interest rates of 2.75% as fixed and 4.99% as reducing.
- The maximum amount limit is 20 million with a 20% down payment requirement.
- The eligibility criteria is AED 15,000 per month.
- It offers flexible tenure of up to 25 years, and there are no pre-approval charges.
- It grants exclusive offers if you are looking to refinance your home.
Abu Dhabi Islamic Bank (ADIB) Home finance
ADIB offers a high finance amount, and its salary requirement is on the low side. Down below is what the bank offers.
- A mostly flexible interest rate of flat 2.06% fixed and 3.75% reducing the interest.
- A loan of up to 20 million AED can be issued, and the maximum repayment term extends up to 25 years.
- A 20% down payment is expected.
- The minimum salary requirement is AED 10,000
- The bank provides home insurance up to your tenure.
- It offers a grace period that can be extended up to 6 months.
Emirates Islamic Bank Home loan
Emirates Islamic offers one of the best interest rates. Its attractive offers include:
- A flat 1.92% p.a. for fixed and 3.49 for reducing the interest.
- 1% of the loan amount goes towards the processing fee.
- A maximum amount of up to 15 million AED can be sanctioned with a 20% down payment.
- The repayment term extends up to 25 years.
- A grace period of 2 months is also available.
RAKBANK is also a good bank to consider with attractive offers. Following are what the bank offers:
- It provides a fixed interest rate of 2.09% and a reducing interest rate of 3.99% per annum.
- Finance of up to AED 18 million can be issued, and a down payment of 20% is compulsory.
- 1% arrangement fee as well as 1%, an early settlement fee can be charged.
- The minimum salary requirement is AED 15,000 per month.
Commercial Bank Dubai Mortgage loan
CBD also offers low-interest rates and high finance amounts. The information regarding the bank is given down below.
- Its interest rate starts from 1.65% for fixed and 2.99% for reducing the interest.
- The down payment of CBD can be a bit high at 25%, but it does not charge any processing fee.
- The maximum loan amount can be AED 20 million.
- The repayment term can stretch up to 25 years.
- The eligible salary stands at AED 12,000 per month.
Standard Chartered Home Suite option is also one to consider. Here is what it has to offer.
- A flexible interest rate starting at 2.07% for fixed and 3.75% for reducing the interest.
- The arrangement fee is just 0.525%.
- The maximum amount that can be withdrawn is AED 18 million with a 20% down payment.
- The minimum salary requirement is AED 10,000
- It offers a long repayment term.
United Arab Bank is also a good bank to consider with competitive offers. Check out its features down below.
- It provides a fixed interest rate of 1.93% and a reducing interest rate of 3.69% per annum.
- Finance of up to AED 10 million can be issued and a down payment of 20% is compulsory.
- A 1% arrangement fee and 1% early settlement fee can be charged.
- The minimum salary requirement is AED 15,000 per month.
This option is best for those that are looking to buy ready or under construction houses. Al Hilal Bank will buy the property and will then lease it to you for a fixed term.
- The interest rates start from 1.93% for fixed and 3.5% as reducing.
- The maximum finance can reach up to AED 10 million with a down payment of 25%.
- The eligible salary is AED 15,000 and other fees are also applicable at the time of processing.
Dubai Islamic Bank Home finance
If the above options did not catch your eye, then Dubai Islamic Bank Al Islami Home finance will surely do. It offers the highest loan amount with low-interest rates and a low salary requirement.
- The fixed interest rates start from 1.79% p.a. and reducing interest rates are from 3.24% p.a.
- The maximum amount limit is AED 50 million with a tenure of up to 25 years.
- The minimum salary requirement is AED 7,000.
- A processing as well as early settlement fee of 1% each, is applicable.
- It requires the lowest down payment of just 15% of the price.
Taking a Home loan is one of the smartest choices that you can make in life. It saves you a lot of money that you would have ultimately paid in rent and at the end of your term, the house is fully yours.
Now that you have gone through the above list of options, we hope you are convinced about which direction to opt for. Your selected bank would let you have exclusive knowledge so that you have a secured and easy mortgage.
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