Introducing ADCB Dream Home Solutions – owning your home just got easier

• About ADCB Dream Home Initiative
• Pre-approval and it’s Importance
• How to Apply for Pre-approval?
• Calculating EMI and Down Payment
• Interest Rates and Terms and Conditions
• FAQs

In our bid to make finding dream homes easier for you, Bayut recently partnered with ADCB home loan solutions to provide prospective buyers with convenient access to home finance. The Bayut-ADCB Dream Home Platform is a first-of-its-kind initiative in the UAE that offers an integrated user experience where home seekers can find properties and obtain a home loan pre-approval online to finance the purchase of their dream home. Here’s everything you need to know about the Bayut-ADCB Dream Home Platform.

WHAT IS THE ADCB DREAM HOME INITIATIVE?

One of the latest additions to the comprehensive list of ADCB home financing options, the Bayut-ADCB Dream Home Platform is a first-of-its-kind digital home ecosystem in the UAE. The platform allows customers to search for their ideal home based on listings advertised on Bayut and receive an instant mortgage pre-approval online.

*Best price guaranteed on this home loan, with interest rate fixed for 3 years, exclusively for customers applying for an instant pre-approval on ADCB Dream Home platform.

The ADCB dream home loan solution in partnership with Bayut has digitised a key part of the process to apply for home finance. The first phase involves submitting a pre-approval application for eligibility via the Bayut-ADCB Dream Home Platform website, which is then routed to the ADCB system for an instant credit check through Central Bank.

All the necessary checks are completed in real-time to reach a decision on the applicant’s eligibility for this ADCB housing loan option. Once the loan eligibility is determined, you can move on to the second phase of acquiring housing finance through the ADCB home loan solutions, where an experienced relationship manager will get in touch and walk you through the entire process.

ADCB in partnership with Bayut aims to facilitate their customers with a platform that guarantees a simple, transparent and seamless digital home ownership experience, offering them greater control over the home buying process.

WHY IS PRE-APPROVAL IMPORTANT?

A home loan pre-approval letter is an official document issued by the bank as evidence of your eligibility for obtaining housing finance. The letter is issued after running a credit check via the Central Bank. The pre-approval letter allows:

• Greater certainty and flexibility to prospective home buyers looking for housing loans.
• Provides a tentative budget with the maximum borrowing limit to avoid any last minute disappointments.
• Helps real estate brokers, property sellers and developers gauge the seriousness of potential buyers.

One of the biggest reasons that makes the Bayut-ADCB Dream Home Platform a first-of-its-kind initiative is that it gives home seekers a unique opportunity to get an instant pre-approval that is truly digital.

Normally, a home loan pre-approval letter from a bank takes three to five working days. But with the instant pre-approval loan, the eligibility decision is made in real time, saving a lot of time and effort. 

HOW TO APPLY FOR THE PRE-APPROVAL?

To apply for any of the ADCB home financing options through the Dream Home Platform, you need to first find your preferred property on Bayut. Once you find an ADCB-approved property on Bayut, then:

• Scroll down to the mortgage section and click “Apply for Pre-Approval”.
• Click “Proceed” and fill out the application with accurate details.
• Read the Terms & Conditions and check the acknowledgement.
• Submit the application and wait.

The ADCB home loan pre-approval is instant and you can expect a decision on your application within five to ten minutes (in very rare cases, in can take up to an hour) of applying. If you successfully receive approval, here’s what you can expect:

• A dedicated ADCB Relationship Manager will contact and guide you through the remaining process, including:
  • The loan application.
  • Regulatory requirements for home loans in Dubai and the UAE.
  • The applicable fees and charges.
  • Property valuation.
• You can then choose a financing option that works best for you and finalise the property you wish to buy.
• Submit the required documents along with the home finance application and await the final ADCB home loan solutions offer.
• Sign the offer letter and register the title deed.

Once the process is completed, you can then prepare to move into your new dream home.

WHAT DOCUMENTS DO YOU NEED TO APPLY FOR PRE-APPROVAL?

For the initial eligibility check, you just need the following documents:

• Valid Emirates ID
• Valid Passport

CALCULATING YOUR EMI AND DOWN PAYMENT FOR ADCB HOUSING LOANS

Another great thing users can benefit from with this ADCB home loan solution in partnership with Bayut, is the online Mortgage Calculator. Potential home buyers can find these helpful mortgage calculators on the Bayut website and the ADCB Dream Home Platform.

Using the Mortgage Calculator, you can determine the estimated loan amount, down payment and monthly instalments (EMI) based on your selected property value, loan tenure and interest rates.

Please note that the EMI and down payment amount displayed on the ADCB Mortgage Calculator are for illustrative purposes only, based on indicative interest rates. They do not apply to your actual home loan in Dubai, Abu Dhabi or the other emirates. Therefore, it is quite common that your actual instalment amounts may differ from the ones displayed on the calculator.

HOW MUCH MONEY CAN YOU BORROW FOR A HOME LOAN?

The maximum ADCB housing finance amount is AED 24M and the minimum amount you can borrow is AED 250k. The loan amount can and does vary according to a number of factors, including:

• Housing finance regulations.
• Personal circumstances.
• The nature of transaction.
• Property developer involved.

The maximum amount of mortgage you can acquire or the Loan to Value (LTV) ratio is regulated by the Central Bank of the UAE. The tables below detail out the current regulations on the LTV:

COMPLETED 1ST PROPERTY

COMPLETED 2ND PROPERTY

UNDER CONSTRUCTION PROPERTY

INTEREST RATES AND TERMS & CONDITIONS

ADCB home loan solutions, under partnership with Bayut, allows potential homeowners to choose from different types of interest rate options available on their housing finance. ADCB Dream Home Platform offers a low home loan interest rate in Dubai fixed for a period of 3 years for those applying through this initiative.

VARIABLE RATE OPTION

The variable interest rate, also known as the floating interest rate, is calculated as EIBOR (Emirates Interbank Offered Rate) + Margin. This interest rate fluctuates with the changes in EIBOR.

HYBRID RATE OPTION

The hybrid rate option allows customers to fix the rate of applicable interest on their loan for a certain time span. Once the fixed rate period expires, the applicable interest rate changes to ADCB’s ongoing variable rate (EIBOR+Margin).

Other than the interest rate, there are a few other things that you must consider when opting for the ADCB Dream Home loan solution:

• Processing charges may be applicable on utilising the facility.
• You must insure the property and have life insurance coverage for the entire duration of the loan.
• The loan is finalised after external property valuation and therefore might be subject to additional charges.

You can learn more about the pros and cons of flat vs. reduced interest rates for further clarity on the type of interest plan.

FREQUENTLY ASKED QUESTIONS

You may have certain questions pertaining to the pre-approval and the general features of the ADCB home saver loan under the ADCB-Bayut Dream Home Initiative. Here are the answers to some of the most frequently asked questions:

DO I HAVE TO BE AN ADCB ACCOUNT HOLDER TO BE ABLE TO APPLY FOR THE DREAM HOME LOAN PRE-APPROVAL?

No, the initiative does not require you to be an account holder at the ADCB Bank to apply for pre-approval. However, if you want to avail of the ADCB home loan, you must open a current account in the bank to facilitate the repayment of your mortgage.

WHAT DO I DO IF THERE IS AN ERROR IN SUBMITTING THE ONLINE PRE-APPROVAL APPLICATION?

You can submit the pre-approval application again. The platform allows you to submit three pre-approval applications per hour. If you are still unable to re-submit your application, it is best to visit your nearest ADCB branch or call the 24-hour bank helpline on: 600 50 2030.

WHAT IF A RELATIONSHIP MANAGER DOES NOT CONTACT ME AFTER THE PRE-APPROVAL REQUEST IS APPROVED?

The system auto-assigns a dedicated relationship manager to you. It may take 24 hours after pre-approval submission for them to reach out to you. If you are still not contacted by an ADCB representative, it’s best to call the bank helpline.

DO I GET A PHYSICAL COPY OF THE PRE-APPROVAL LETTER AFTER ONLINE SUBMISSION AND APPROVAL?

No, you don’t. However, the bank does send the results of your application on your registered email address and the same email can be printed to be used as a physical copy.

HOW MANY PROPERTIES CAN I SEEK HOME FINANCE FOR?

Under the ADCB-Bayut Dream Home loan scheme, the number of properties you can seek finance for is limited by your residency status and the completion status of the project you want to invest in. Please refer to the table below for more details:

SHOULD I SUBMIT MULTIPLE PRE-APPROVAL REQUESTS FOR MULTIPLE PROPERTIES?

No, you don’t need to submit multiple applications. The pre-approved loan amount indicated in your letter is the maximum loan finance you are eligible for.

WHAT ARE THE CHARGES FOR GETTING A PRE-APPROVAL THROUGH ADCB DREAM HOME LOAN SOLUTIONS?

The pre-approval letter applied for through the ADCB Dream Home platform is free of charge. Charges only apply if you decide to move forward with the actual loan application.

WHAT SHOULD I DO IF I ENTER INCORRECT CREDENTIALS OR HAVE ERRORS IN MY PRE-APPROVAL APPLICATION?

In this case, it is best to inform the relationship manager about any changes required to the pre-approval credentials or information on the ADCB housing loan, so that only the correct information is processed for your loan application.

HOW LONG IS THE PRE-APPROVAL LETTER VALID FOR?  

The pre-approval letter for the ADCB Dream Home loan solution is valid for 90 days from the date of application. If you are unable to apply for housing finance during this 3-month period, you need to submit a new pre-approval application to re-start the process.

There you have it – everything you need to know about the Bayut-ADCB Dream Home Platform. The arrangement is ideal for anyone who wants to buy a home in Dubai, invest in an apartment in Abu Dhabi or any of the other emirates.

So explore the cheapest areas in Dubai to find affordable properties. Those who’d like to have a home in the capital can look at the top areas to buy townhouses in Abu Dhabi. The residential options for property investment in the UAE are endless.

You can also keep an eye out for some of the top house buyer mistakes in Dubai to ensure that the process of getting a new place is seamless.

However, it is important to note that there are certain rules for buying a property in the UAE for foreigners that must be adhered to by all expats who wish to own a home in the country.