A complete guide to mortgage loans from UAE banks
The UAE is the perfect place to call home. With outstanding education, infrastructure and world-class amenities, it’s a place where life goals can be achieved. And it’s that abundance of opportunity which is leading more and more residents to take the long-term approach. A decision that, when made, leads to a logical progression of potential real estate investment. Taking that all-important step on the property ladder. And in many cases, that investment requires a mortgage loan from a UAE bank.
But what is the best mortgage option for you? MyBayut has put together this comprehensive guide on different UAE banks and their respective mortgage options to help you answer that very question. Let’s take a look.
Top Options for Mortgage Loans from UAE Banks
- Abu Dhabi Commercial Bank
- First Abu Dhabi Bank
- Emirates NBD
- Dubai Islamic Bank
- RAK Bank
- Emirates Islamic Bank
- Mashreq Bank
Aspiring homeowners in the UAE, it’s time! Owning your dream property is within reach with these mortgage loans from UAE banks. The following loans provide financial assistance for purchasing a home, land for development and even renovations.
Whether you’re a UAE national, a GCC citizen or an expat, understanding the mortgage options offered by UAE banks is crucial for making informed decisions. This guide will take you through the process, explaining eligibility requirements, interest rates, repayment plans and the different types of mortgages available.
Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank, in partnership with Bayut, is offering a one-stop shop for your home ownership journey. Search for your dream property on Bayut, then get instant pre-approval for a home loan – all in one place.
Once you have searched for a property on Bayut, the next step includes choosing the best home loan solution offered by one of the best banks in Abu Dhabi, ADCB:
- Standard Mortgage Loan
- Mortgage Home Saver
- Green Home Loan
The benefits include:
- Option of Islamic or conventional home finance.
- Financing up to 85% of property value for UAE nationals, 80% for expatriates and up to 50% for non-residents.
- Competitive interest rates with the following structures:
- Hybrid Structure: Fixed for initial years and variable afterwards
- Variable Rate Structure: Based on relevant EIBOR + Margin
- Repayment tenure of up to 25 years for UAE nationals and expatriates and up to 15 years for non-residents.
- Flexibility of partial settlement during the duration of the loan.
Documents Required to Acquire Home Loan from ADCB
For salaried individuals:
- Completed application form
- Proof of booked property (if any)
- Declaration of the source of down payment
- Valid Passport, Visa & EIDA Card copy
- 6 months’ bank statements copy
- Salary Certificate, issued to ADCB and dated 30 days or less from the date of loan application
- Salary transfer letter (if transferring salary to ADCB)
- Details of existing loans/liabilities
For self-employed individuals:
- Completed application form
- Proof of booked property (if any)
- Declaration of the source of down payment
- Valid passport, visa and EIDA Card copy
- 6 months’ bank statements copy for both personal and company accounts
- Last 2 years audited financial statements copy (for loan value greater than AED 2.5 Million)
- Valid Trade License copy (If applicable: Memorandum of Association/ Articles of Association / Share Certificates)
- Details of existing loans/liabilities
First Abu Dhabi Bank (FAB)
The First Abu Dhabi Bank brings you a variety of competitive fixed and variable interest rates, along with low down payments, high financing amounts and minimal fees.
Their expert mortgage advisors will guide you through the entire process and help you find the perfect mortgage solution for your needs. Plus, you’ll enjoy additional benefits like choosing a FAB credit card that fits your lifestyle.
Investing in real estate via FAB mortgage loans brings you benefits like:
- Transfer your salary and get market-leading fixed rates.
- Choose a FAB credit card to complement your loan (existing cardholders are not eligible).
- Transfer your salary, open an iSave Account, and earn up to AED 12,500 cashback.
- Flexible option with rates starting from 0.55% + 3 months EIBOR.
- Up to 85% financing for first-time buyers.
- No approval-in-principle fee.
- Earn up to AED 10,000 in FAB Rewards points when you transfer your salary.
- Exclusive developer deals on processing and valuation fees.
Whether you are a first-time homeowner or an existing homeowner looking for a remortgage, FAB brings you a variety of mortgage loans. These include:
- FAB green mortgage
- Home loans for non-UAE residents
- Loans for small buildings
- National housing loans
You can visit the official website to learn more about these mortgage types. You can also use the FAB mortgage calculator to estimate monthly repayments.
Application Process
If you plan to move forward with FAB mortgage loans, here’s the application process:
- Submit your interest by filling out an online form.
- Consultation with a mortgage specialist to understand different mortgage loans.
- Sign a MOU (Memorandum of Understanding) with your agent and arrange a home valuation with an FAB Home Representative.
- Submit required documents like Mortgage Application Form, Income Proof, Sale and Purchase Agreement and any other items your mortgage specialist advises on.
- Sign the home offer letter and mortgage approval.
- Visit the Dubai Land Department (DLD) and register your home, while mortgaging your property to the bank.
- Now that the property is yours, the applicant needs to start paying the monthly instalments to the bank.
Emirates NBD
Next on our list of top UAE banks for mortgage loans is Emirates NBD. From owning a home in the UAE as a non-resident to self-construction loans for UAE nationals, Emirates NBD propose a variety of mortgage loans.
Let’s look at house loans available to Emiratis and expats living in the UAE and their benefits.
Mortgage Loans for Emiratis
Emirates NBD, one of the top banks in Dubai, offers mortgage loans to Emiratis with a minimum salary of AED 10,000.
- Home loans for self-construction
- Up to 100% financing of construction cost
- Payment holiday for 2 years or construction completion, whichever is earlier
- Loan amounts up to AED 25 million
- Fixed-rate interest option available
- Home loans for UAE nationals
- Financing up to 85% of the property value
- The loan amount offered up to AED 25 million
- Government housing included
- Loan against property for UAE nationals
- Loan amount of up to AED 25 million
- Loan-to-Value (LTV) up to 70%
- Loan against fully constructed and completed properties across all Emirates
- Mulhaq loans
- Loan amount of up to AED 25 million
- Loan-to-Value (LTV) up to 70%
- Minimum 21 years old to be eligible
- Government Housing Programmes
- 0% interest on loan amounts up to AED 800k
- Zero processing fee and discounted valuation fee
- Optional life insurance
Mortgage Loans for Expatriates
Expatriates with a minimum salary of AED 15,000 can opt for the following mortgage loans from the bank:
- Home loans for expatriates
- Financing up to 80% of the property value
- Borrow up to AED 25 Million or 84 salary multiples (whichever is lower)
- Loan against property for Expatriates
- Borrow up to AED 25 million
- Financing up to 80% of the property value
- Loan tenor up to 25 years
Documents Required to Apply for a House Loan from Emirates NBD
For salaried individuals:
- Passport and Emirates ID
- Salary certificate addressed to Emirates NBD
- Bank statement for the last 6 months
- Pay slips for the past 6 months, if pay varies more than 10%
For self-employed individuals:
- Passport and Emirates ID
- Copy of Trade License
- Memorandum of Association (MOA), including all amendments
- Bank statement for the last 6 months
- Audited company financials for the past two years
Co-borrower documents (if applicable):
- Co-borrowers passport and Emirates ID
- Income documents (if applicable)
- Pay slips for the last 6 months if pay varies more than 10% (if applicable)
- Bank statement for the last 6 months (if applicable)
- If the co-borrower is a company owner, please share the MOA and Trade License
If moving your loan to Emirates NBD:
- Valid passport and Emirates ID
- Property documents and title deed
- Existing bank loan documents
Dubai Islamic Bank
If you are searching for UAE home loans from banks, don’t forget to add Dubai Islamic Bank to your research list! Depending on your housing needs, there are multiple mortgage products you can opt for and enjoy the benefits associated with them.
Also, switch your salary to DIB and get rewarded! New customers enjoy a bonus on their first paycheck, plus a range of exclusive bank benefits.
Let’s start with the popular mortgage products that can help you secure a house loan in Dubai or any other emirate.
MyHome
Dubai Islamic Bank offers a home financing experience designed around your needs. Under this option, you have/can:
- Flexibility to choose your EIBOR review period.
- Fixed margin for life linked to EIBOR with a choice of 3, 6 or 12-month review frequencies.
- Choose the review period you prefer.
- Fixed rate for the life of the finance (Only DIB offers fixed rate via Ijarah contract)
- Choose from 1, 3, and 5-year fixed introductory rates (it is subject to DIB offering the specific fixed-rate period)
- The follow-up variable rate comprises a low margin, plus a choice of either a 3, 6 or 12-month EIBOR review.
DIB Nest
DIB Nest – Sustainable Home Finance enables you to make a positive impact while achieving your dream home. This program offers a suite of benefits to make eco-friendly living more accessible, including:
- Financing options for solar panels and sustainable construction materials.
- Discounted mortgage rates to reward your commitment to sustainability.
- Reduced fees on due diligence, documentation and property valuation.
- Free property Takaful for the first year (on ready properties) for added peace of mind.
- Streamlined digital process with paperless pre-approvals and digital contracts.
First-time Buyers and Existing Homeowners
Have you decided to buy your first home? The bank will conduct due diligence and appoint a mortgage advisor for you. Similarly, DIB can also help you to purchase a property from an existing homeowner. You’ll also be able to enjoy benefits like:
- The profit rate applicable is EIBOR (3|6|12 Months) + margin
- Flexible tenure of up to 25 years
- Salary transfer is not required
- Up to 85% financing for UAE Nationals, 80% for ex-pats
Non-Resident Program
With the largest approved developer base, the DIB Non-Resident Program enables you to own a home in the UAE. If you already have a house on mortgage, you can sign up for their Home Equity program. Here, you use your home as collateral against a finance plan that can be directed towards the renovation of the home, purchasing a property or construction of a home.
- Quick Processing
- High finance amounts
- Attractive repayment tenure
- Competitive profit rates
Other mortgage products at Dubai Islamic Bank include the Government Housing Scheme and Commercial Property Finance.
To learn whether you are eligible for any house loans, the DIB bank has a ‘First Step Qualified’ form where you have to enter your details like residency status, DOB and type of employment.
RAK Bank
Are you planning to have your own home in the UAE? RAK Bank brings you outstanding options to turn your dream into a reality. The bank offers three mortgage products which are discussed below.
Home Loan
Are you looking for the easiest and most affordable way to buy your dream home in Abu Dhabi, Dubai or Ras Al Khaimah? Look no further! RAK Bank Home Loan offers the most flexible terms and competitive rates, making homeownership a reality. Their dedicated Home Loan advisors will guide you through every step, ensuring a smooth and stress-free experience.
The benefits of financing a house via RAK Home Loan include:
- Interest rates starting from 4.99%, reducing rates p.a. fixed for 5 years
- Affordable interest rates
- Low-cost mortgage
- Minimum formalities, quick approval
- Flexible repayment options
The eligibility criteria for obtaining the Home in One Loan are:
- You are a UAE nationals, GCC nationals, resident expatriates and non-resident individual
- The minimum income for salaried individuals should be AED 15,000 per month
- The minimum income for single and joint expats should be AED 10,000 per month
- The maximum loan amount for salaried individuals is AED 13 million
- The maximum loan amount for self-employed customers is up to AED 20 million
Home in One Loan
Save on interest with RAK Bank’s Home in One Loan! The more money you keep in your linked current account, the less you’ll owe in interest. Essentially, the outstanding loan amount is reduced by the balance in your account, so you only pay interest on the remaining amount. This lets you potentially pay less interest or even no interest at all!
Some of the benefits of applying for this loan include:
- Interest rates starting from 4.99%, reducing rates p.a. fixed for 5 years
- Access your funds anytime
- Low-cost mortgage
- Competitive interest rates
The eligibility criteria for obtaining the Home in One Loan are:
- You are a UAE national and UAE resident
- The minimum income for salaried individuals should be AED 15,000 per month
- The minimum income for single and joint expats should be AED 10,000 per month
- The maximum loan amount for salaried individuals is AED 13 million
- The maximum loan amount for self-employed customers is up to AED 20 million
Green Home Loan
Exclusively for salaried and self-employed residents in Ras Al Khaimah, the Green Home Loan offers competitive rates if you purchase a ‘BARJEEL’ certified home. ‘BARJEEL’ homes are designed to be energy and water-efficient, reducing your utility bills and environmental impact.
Salient features of this mortgage product include:
- Interest rates starting from 4.89%, reducing rates p.a. fixed for 5 years
- Affordable interest rates
- Single or joint ownership
- Repayment options for up to 25 years
- No process and approval fees
Following are the eligibility criteria for Green Home Loan:
- Proof of employment for UAE nationals
- Salaried individuals with a minimum monthly salary of AED 15,000
- UAE expat residents must show a minimum of 6 months of employment with the same employer
- Business customers must show ownership of the business for at least 2 years
Emirates Islamic Bank
Our next entry on the list of top UAE banks for mortgage loans is Emirates Islamic Bank. The bank offers three types of mortgage loans: for UAE nationals, non-residents and commercial property financing.
Home Finance – Bina’a
Bina’a is a home financing loan for UAE nationals. Using the Islamic principle of Forward Ijarah, the bank finances the construction of the property. Once completed, they lease the property to you under the agreed repayment plan.
This option includes benefits like financing up to 85% of the current market value, quick approval, repayment tenures of up to 25 years and much more.
Salaried UAE nationals must submit the following documents to process the loan:
- Copy of valid passport (original required for verification)
- Copy of “Khulasat Al Qaid” or National ID (original required for verification)
- Original Salary Certificate less than 45 days old providing details on length of employment, current designation and salary package, or
- Salary Transfer Letter in case salary is transferred to Emirates Islamic containing details on length of service, current designation and salary package
- The last 6 months’ bank statements reflecting salary credits
- Liability letter less than 30 days old reflecting borrowings with the bank to which your salary is transferred
- Originals of property details, including the
- Quote/Offer Letter from the seller
- Sale and Purchase agreement
- Title Deed/Mulkia and Site Plan
- In the case of the Sheikh Zayed Housing Program (SZHP), Mohammad Bin Rashid Housing Establishment (MBRHE) and Sharjah Housing Program (SHP), a copy of valid facility approval
Home Finance – Manzili
This home loan is available to both UAE residents and non-residents. This product solution is for all individuals seeking finance to buy, transfer or cash release for any freehold property in UAE.
Documents required to obtain this loan for salaried non-residents are:
- Copy of valid passport (original required for verification)
- Original Salary Certificate less than 45 days old providing details on length of employment, current designation and salary package
- Last three months’ pay slips (if applicable)
- Documentation from your bank, including
- Bank statements of the last 6 months, reflecting salary credits
- Liability/Reference letter no more than 45 days old
- Latest tax returns for the previous 2 years (if applicable)
- Credit Bureau Report (if applicable)
- Originals of property details, including the
- Quote/Offer Letter from the seller
- Sale and Purchase agreement
- Title Deed and Site Plan
- Receipts of down payment made to the seller
Salaried residents, self-employed residents and self-employed non-residents can see what documents they must submit to the bank on the official website.
Commercial Property Finance
Emirates Islamic’s Commercial Property Finance solution caters to corporate, industrial, retail or residential property finance needs. You can buy commercial properties (office space, retail space, residential complex, etc.) with finance provided by Emirates Islamic under the principles of Ijara.
The facilities optimally utilise your capital and better manage your cash flows. Emirates Islamic can finance a completed property or let the investment in your property offer you greater financial flexibility. This can be done via cash release from your completed commercial properties.
Mashreq Bank
Mashreq Bank is another worthwhile option if you are considering UAE home loans from banks. Their mortgage products include:
- Home Loan for Residents
- Home Loan for Non-Residents
- Commercial Mortgage for UAE Residents
If you opt for a home loan with Mashreq Bank, you can enjoy benefits like:
- High loan amounts of up to AED 10 million
- Loan repayment tenure of up to 25 years
- Low interest rates
- Financing up to 50% of property value
Documents Required for Home Loan (UAE Residents and Non-residents)
For salaried individuals:
- Application form
- Passport copy with a valid visa
- Salary Certificate addressed to Mashreqbank
- Six months’ original bank statements
- A liability letter from the bank addressed to Mashreq Bank
- Photocopy of Purchase Contract
- Photocopy of down payment receipts
For self-employed individuals:
- Application form
- Passport copy with a valid visa
- Six months’ bank statements personal and company
- A liability letter from the bank addressed to Mashreqbank
- Memorandum and articles of association
- Audited financial statements for the past 2 years
- Board resolution copy
- Trade license copy
- Copy of Chamber of Commerce Registration
- Business profile on company letterhead
- Photocopy of Purchase Contract
- Photocopy of Down Payments
Mashreq’s Commercial Mortgage Loans offer completed properties such as shops, office spaces, warehouses and other business units. If you want to apply for this loan, consider submitting:
- Application form
- Valid Passport, visa and Emirates ID copy
- Income statement
Other House Loans from UAE Banks
Those looking for more options regarding mortgage loans in UAE from the banks can look at the table below.
Bank Name | Loan Name | Contact Number |
|---|---|---|
Bank Name Commercial bank of Dubai | Loan Name Home Loan | Contact Number +971-60-057-5556 |
Bank Name Al Hilal Bank | Loan Name Home Financing | Contact Number +97160-052-2229 |
Bank Name National Bank of Umm Al Quwain | Loan Name Mortgage Loan | Contact Number +971-60-056-5656 |
Bank Name Ras Al Khaimah Bank | Loan Name Home Loan | Contact Number +971-60-054-4049 | +971-60-054-0044 |
Bank Name Abu Dhabi Islamic Bank | Loan Name Residential Real Estate Financing | Contact Number +971-2-610-0600 | +971-60-054-3216 |
Bank Name Sharjah Islamic Bank | Loan Name Mortgage | Contact Number +971-6-599-9999 |
Bank Name Arab Bank | Loan Name Housing Loan | Contact Number +971-4-445-0000 |
Bank Name National Bank of Fujairah | Loan Name Home Loan | Contact Number 8008-NBF(623) |
Bank Name Ajman Bank | Loan Name Mortgage | Contact Number 800-22 |
Bank Name HSBC UAE | Loan Name Mortgage | Contact Number 800-46873 |
Bank Name Commercial International Bank | Loan Name Home Loan | Contact Number +971-60-054-4440 |
Bank Name Broda Bank | Loan Name Housing Loans | Contact Number +971-4-313-6666 | +971-4-313-6600 |
Bank Name El Nilein Bank | Loan Name Mortgage | Contact Number +971-2-626-9995 |
Bank Name Arab African International Bank | Loan Name Mortgage | Contact Number 800 2242 |
Bank Name Standard Chartered Bank | Loan Name Housing Loan | Contact Number 800-4949 |
Bank Name National Bank of Kuwait | Loan Name Housing Loan | Contact Number +971-4-316-1700 |
FAQs About House Loans from UAE Banks
What is a remortgage or buy-out mortgage?
Remortgaging, refinancing or taking out a buy-out mortgage all mean the same thing: replacing your current mortgage with a new one from a different lender/bank/financial institution. This can be done to secure a lower interest rate, access additional funds or switch to a different type of mortgage product.
What is EIBOR, its trend and max high/low?
The UAE Central Bank publishes a daily reference rate called the EIBOR (Emirates Interbank Offered Rate). This rate reflects the average interest major UAE banks charge each other for short-term loans. If you’re interested in historical data or want to see today’s EIBOR, you can find it on the UAE Central Bank’s website.
What kind of mortgages are available in Dubai?
If you are living in the city and searching for ways to own a house, look at our guide on different types of mortgages in Dubai. You can opt for fixed-rate, variable, offset, investment, non-resident mortgage, etc.
If you have decided upon the mortgage type, the next step would involve studying how to get a mortgage in Dubai. Our post on this topic outlines eligibility criteria, documents required and the general process.
How long does it take to process a mortgage in the UAE?
The mortgage application typically takes around two weeks (10 working days) to receive a final offer letter. This includes securing pre-approval.
The minimum down payment required depends on your situation. For first-time mortgages, the stated deposits apply. However, if you already own a property with a mortgage, UAE nationals will need a minimum down payment of 35%, while expats will need 40%.
Can non-resident investors get a mortgage loan in Dubai?
Yes, overseas investors who want to purchase a property in Dubai to add to their real estate portfolio or as a holiday home, can get a mortgage. You’ll enjoy various benefits as a non-resident investor with a mortgage in Dubai, including high loan amounts and increased flexibility.
Is it a good idea to buy a house through a mortgage loan?
The debate about buying a property via cash or mortgage is complicated and depends on your situation and preferences. Factors like your reason for purchasing a house, type of employment, age, finances, etc will determine whether buying a home via mortgage is feasible or cash is the better option.
This brings us to the end of our guide on mortgage loans from UAE Banks. Selling mortgaged property? Our guide answers all your questions regarding the process.
Moreover, foreigners who wish to buy a property in Dubai should read up on the rules of foreign property ownership in the UAE to avoid any misteps.
