Home Loan in UAE

What is a Home Loan in UAE?

It is a type of loan that helps you buy your dream home without paying the full amount upfront. It’s worth noting that the property you plan to buy acts as collateral itself here.

Purchasing a property with a mortgage loan can be quite easy. You can easily make the purchase and repay the loan in monthly instalments over a period that can be as long as 25 years.

Additionally, home loan rates in Dubai and other Emirates are quite attractive. This way, you don’t have to pay much amount in the form of loan interest.

Top Home Loan Plans in UAE

Home Loan Interest Rate in Dubai, UAE

Mortgage loan interest or profit rates in the UAE start from around 1.66% p.a. (fixed rate) or 2.99% p.a. (reducing rate). However, note that these rates are for reference only — actual rates can vary as per many factors:

• Your chosen bank and loan
• Loan amount
• Repayment tenure
• Your salary
• Age
• credit Score
• Down payment and more

We will now understand the two key types of home loan interest rates in Dubai and all over the UAE -

Flat Interest Rate -

Under this type of interest rate for home loan UAE, the interest is calculated on the total loan amount. The rate, usually, remains constant throughout the loan. In plain terms, the interest amount remains the same throughout the loan tenure. This stability can be great as it ensures fixed instalments, which is beneficial for budgeting and financial planning.

However, if you want the interest amount to decrease as you settle your mortgage loan Dubai, you can go for the type discussed next.

Reducing Interest Rate -

As the name suggests, the interest amount keeps decreasing with each instalment with reducing rates. This is because the interest is calculated on the outstanding loan amount, which decreases as you keep making payments for your home loan in UAE.

This approach results in lower interest costs over the loan term compared to a flat rate. It can especially be useful if you plan to settle your loan before the set tenure, as you can make a large payment once and bring down the interest amount.

Note: With respect to home loan interest rates in Dubai and other Emirates, reducing rates are usually higher than fixed rates.

Types of Home Loan in UAE

Here are the major types of mortgage loans across the Emirates -

• Fixed Rate Home Loan

As the name suggests, this type of loan offers stability as the interest rate is locked in for a set period. In other words, your monthly payments remain the same, making it easier to budget properly and avoid market fluctuations. 

This type of mortgage loan UAE is ideal if you prefer predictability over the long term.

• Variable Rate Mortgage Loan

Under this category, the home loan interest rates in Dubai fluctuate with the market interest rates. These variations are primarily linked to the Emirates Interbank Offered Rate (EIBOR).

However, as the interest can easily increase or decrease over time, such an option is preferable only if you expect a drop in interest rates or can handle some uncertainty in your monthly payments.

• Islamic Home Loan

Islamic home finance adheres to Sharia principles related to finances. Unlike conventional house loans, these mortgages avoid interest and use structures like Murabaha or Ijarah. Here, the bank buys the property and sells or leases it to you at a profit margin as per the pre-agreement.

Why Should You Apply for a Home Loan Through Policybazaar.ae?

When you apply for a mortgage loan in UAE through Policybazaar.ae, you can enjoy plenty of benefits -

• Partnership with the top banks
• Straightforward application process
• Facility to compare several loans in one place
• Options with attractive home loan rates in Dubai and other Emirates
• 24/7 customer service team for assistance

Get the Best Home Loan from the Top UAE's Banks

Best Home Loan Plans in Dubai, UAE - Interest Rates & Minimum Salary

Mentioned below are some of the top mortgage loans Dubai along with their tenures. We have also mentioned the top home loan interest rates in Dubai for your convenience -

Bank Name	Home Loan Rates in UAE (per annum)	Minimum Monthly Salary	Apply
HSBC New Home Loan	Fixed Rate - 1.96% Reducing Rate- 3.59%	AED 15,000	Apply Now
CBD Mortgage Loan for Salaried	Fixed Rate - 2.18% Reducing Rate - 3.54%	AED 12,000	Apply Now
FAB Home Loan for Residences and Investment in UAE	Fixed Rate - 3.94% Per Annum Variable Rate - Starting from 0.55% + 3 years EIBOR for the first year and 1.5% + 3 months EIBOR from the second year onwards	AED 15,000 (for salaried) AED 25,000 (for self-employed)	Apply Now
Standard Chartered Saadiq Home Finance	Fixed Rate - 1.66% Reducing Rate - 2.99%	AED 15,000	Apply Now
Sharjah Islamic Bank Real Estate Finance	Fixed Rate - 2.75 Reducing Rate - 4.99	AED 12,000	Apply Now

Note: The maximum repayment tenure for all these loans is 25 years.

How to Calculate Home Loan EMI in UAE?

Use a home loan calculator to easily find out your loan’s monthly instalments before applying.

On Policybazaar.ae, you can use our mortgage loan calculator to get accurate results in an instant. Simply enter the value of your property, the interest rate, loan period, and the down payment. 

The calculator will show the monthly instalments, the overall interest amount, and the total amount that you have to pay (principal and interest). You can use this tool to compare and find out which bank’s loan suits you the best without affecting your budget.

Top 5 Banks for Mortgage Loan in UAE with Low-Interest Rate and Different Loan Offers

Here are the best home loans in UAE along with their key details -

Home Loan in UAE	Maximum Loan Amount	Features
HSBC New Home Loan	AED 20 million	60 mins Approval in Principle  Home loan arrangement fee — Nil Overpayment available
CBD Mortgage Loan for Salaried	AED 20 million	Settle up to 15% of the outstanding balance (annually) without additional fees No processing fees for loan buyouts Refinancing available
FAB Home Loan for Residences and Investment in UAE	AED 20 million	Sharia-compliant finance available Loan of up to 85% of the property value (for first-time buyers) Up to AED 10,000 in FAB rewards on transferring salary to a FAB account
Standard Chartered Saadiq Home Finance	AED 18 million	Property Takaful free Approval in Principle in just 5 minutes Sharia-compliant
Sharjah Islamic Bank Real Estate Finance	AED 8 million	Sharia-compliant financing Available for residential, non-residential, and under-construction properties

Eligibility Criteria to Apply for Home Loan in Dubai, UAE

Here are the general eligibility criteria for mortgage loans in the UAE -

Eligibility Criteria	Requirements
Minimum Monthly Salary	AED 5,000*
Nationality	UAE nationals or expats
Employment Status	Must be salaried or self-employed

*This is the minimum salary for any loan in the UAE. In effect, banks usually require monthly salaries of AED 10,000 or higher for mortgage loans.

Note: Other eligibility criteria may apply as well. Make sure you confirm the requirements before initiating the application.

How to Apply for a Mortgage Loan in UAE Through Policybazaar.ae?

With Policybazaar.ae, you can easily apply for home loan online -

• Select ‘Home Loans’ on our website’s homepage.
• Enter the specified details in the lead form.
• Explore the mortgage loan quotes and choose one.
• Hit the ‘Apply’ button.

Note: We will review your application submission and get in touch with you shortly.

If you face any issues during the process, get in touch at 042472904 or mail us at communication@policybazaar.ae.

Click on the button below to start your journey -

Document to Apply for Home Loan in Dubai, UAE

Here are the documents required to apply for mortgage loans in dubai — for both salaried and self-employed individuals:

For Salaried Individuals	For Self-Employed Individuals
Emirates ID Passport Residence visa (applicable to expatriates) Latest 3-6 months’ personal bank statement Property ownership documents Salary certificate or salary slips Employment proof (if required)	Emirates ID Residence visa (for expats) Passport Latest 3-6 months’ bank statement Property ownership documents Trade Licence Memorandum of Association Audited Financial statements

Note -

• All the documents must be valid.
• This is a general list of documents. Your bank may ask you to submit additional documents, if required.

Fees and Charges for Home Loan in UAE

Some of the fees and charges associated with home loan UAE are -

Type of Fee	Charges
Settlement Fee	1% to 1.05% of the outstanding loan amount
Processing Fee	1% of the loan amount

Note -

• Fees and charges of all mortgage loans vary. Make sure to check with the bank before initiating your application.
• Connect with our officials to understand the detailed fees and charges of your chosen home loan. 

FAQ's about Mortgage Loan in Dubai

You May Also Know
Mortgage Loan Eligibility in UAE	Mortgage Loan Pre-Approval in UAE
Mortgage Loans for Expats	Home Loan Balance Transfer in UAE
Home Loans for Non Resident	Mortgage Loan for Salaried Employees
Under Construction House Loans with Variable Interest Rate	Mortgage Loan Procedure in UAE