Home Loan

Homes are where dreams are made. While there is substantial weight in this statement, buying a house of your own is no small feat. Besides years of planning, it also requires a huge sum of funds to accomplish something like buying a house. This is where home loans in UAE step in to lend a hand. 
Saving you from spending your life’s earnings on one asset, home loans in Dubai allow you to buy your dream house without compromising other expenses of your life. Let’s cover everything one must know about home loans, mortgages loans, interest rates, and loan disbursal in the UAE.

Home Loan in UAE

Before applying for a home loan in UAE, you should know about the home loan. Home loans are unsecured loans that you can obtain to purchase houses and similar properties. The ‘unsecured’ aspect means that you do not have to arrange collateral for the loan. Instead, the property that you buy using the home loan amount acts as collateral here. 

This aspect is of great importance, as it means that if a borrower is unable to repay the loan amount within the agreed-upon tenure, the Bank reserves the right to seize the house bought using the loan. In this aspect, home loans are identical to car loans. However, the processing time and steps for car and home loans may differ a bit. 

What is Mortgage Loan?

A mortgage is technically a secured loan. Thus, to take out a mortgage on one property, you have to use another property you already own as collateral. Mortgage loans are also referred to as loans against property. Consequently, if you, as a borrower, are not able to pay the complete mortgage amount within the tenure in the agreement, the property you kept as collateral gets seized.

Another thing that differentiates a mortgage from a home loan is the purpose of the loan amount. A home loan amount can only be used to purchase or construct a new house. On the other hand, mortgage loans can be used for any legal purpose as per the borrower’s requirements. The loan amount you receive in a mortgage loan is usually lesser compared to home loans. On average, you can get up to 60% or 70% of the property value when taking out a mortgage loan.

Best Mortgage Loans in UAE

Several banks in the UAE offer multiple types of of mortgage and home loan products. Below listed are some of the top banks offering some highly preferred home loan products in the UAE. Listed along are the various products and services available as well as some key benefits:

First Abu Dhabi Bank

FAB or First Abu Dhabi Bank of the UAE provides four different types of home financing products which are listed as follows:

1. Home Loan for Investment and Residents 
   • Reducing interest rate from 0.49% - variable EIBOR in the first year
   • 1% early settlement fee for a maximum of AED 10,000
   • 1% procession fee
   • Minimum Salary: AED 15,000 for salaried and AED 25,000 for self-employed
   • Maximum Loan Amount: AED 20,000,000 (15% down payment)
   • Tenure: Up to 25 years
2. Home Loan for Non-Residents
   • Reducing interest rate from 3.24% - fixed for the first two years
   • 1% early settlement fee for a maximum of AED 10,000
   • 1% processing fee
   • Minimum income: AED 50,000 for all applicants
   • Maximum loan amount: AED 10,000,000 with 50% down payment
   • Tenure: Up to 25 years
3. Islamic Mortgage Loan
   • Flat Profit Rate: 1.99%
   • 1.05% early Settlement Fee
   • 1% processing fee
   • Minimum Income: AED 15,000 for salaried and AED 25,000 for self-employed 
   • Maximum Loan Amount: AED 20,000,000
   • Maximum Tenure: Up to 25 years
4. Mortgage Loan for Rental Backed Finance
   • 5% reducing rate of interest
   • 1% settlement fee
   • 1% processing fee
   • Minimum Salary: Based on Rental Income
   • Maximum Loan Amount: 35,000,000 (35% down payment)

RAKBANK Mortgage Loan

Home and mortgage loan products offered by RAKBANK include Mortage Home Loan and Home in One. Below given are a few details about Mortage Home Loans offered by the bank:

• Flat Rate: 2.09%, Reducing Rate: 3.99%
• 1% early settlement fee 
• 1% processing fee
• Minimum Salary: AED 15,000
• Maximum Loan Amount: AED 18,000,000 with 20% down payment
• Tenure: Up to 25 years

Standard Chartered Bank Mortgage Loan

Saadiq Home Finance and MortgageOne are the two types of home loan products you will find with Standard Chartered Bank. Below given a some key details of the same:

1. Saadiq Home Finance
   • Flat Rate: 1.66%, Reducing Rate: 2.99%
   • 1.05% early settlement fee on the loan amount (maximum AED 10,050)
   • 0.2625% processing fee with blanket property evaluation and NIL balance transfer
   • Minimum Salary: AED 15,000
   • Maximum Loan Amount: AED 18,000,000 (20% down payment)
   • Maximum Tenure: 25 years
2. MortagageOne
   • Flat Rate: 1.89%, Reducing Rate: 3.40%
   • 1.05% early settlement fee (calculated on loan amount) - maximum AED 10,050
   • 0.525% processing fee with blanket property evaluation and NIL balance transfer
   • Minimum Salary: AED 15,000
   • Maximum Loan Amount: AED 18,000,000 with 20% down payment
   • Tenure: Up to 25 years

Emirates NBD Bank Mortgage Loan

Emirates NBD Bank offer two separates home loan products - one for UAE nationals and another for UAE ex-pats. Following are some key details of both these products:

1. Home Loans for UAE Nationals
   • Flat Rate: 3.04%, Reducing Rate: 5.75%
   • 1% early settlement fee 
   • 1% processing fee
   • Minimum Salary: AED 10,000
   • Maximum Loan Amount: AED 5,000,000 (20% down payment)
   • Maximum Tenure: 25 years
2. Home Loans for UAE Ex-Pats 
   • Flat Rate: 3.04%, Reducing Rate: 5.75%
   • 1% early settlement fee 
   • 1% processing fee
   • Minimum Salary: AED 20,000
   • Maximum Loan Amount: AED 3,000,000 with 25% down payment
   • Maximum Tenure: 25 years

Emirates Islamic Bank Mortgage Loan

Emirates Islamic is one of the many banks offering great islamic home loan options. Home Finance Bina’a for UAE Nationals and Home Finance Manzili are the two islamic mortgage option available here. Below listed are key details of both these options:

1. Home Finance Bina’a for UAE Nationals 
   • Flat Rate: 1.75%, Reducing Rate: 3.49%
   • 1% early settlement fee 
   • 1% processing fee
   • Minimum Salary: AED 15,000
   • Maximum Loan Amount: AED 15,000,000 (20% down payment)
   • Tenure: Up to 25 years
2. Home Finance Manzili
   • Flat Rate: 1.92%, Reducing Rate: 3.49%
   • 1% early settlement fee 
   • 1% processing fee
   • Minimum Salary: AED 15,000
   • Maximum Loan Amount: AED 15,000,000 with 25% down payment
   • Tenure: Up to 25 years

The table below shows the rates of interest of mortgage loans in the UAE.

Bank Name	Mortgage	Flat Rate	Reducing Rate
FAB	Islamic Mortgage Loan	Profit Rate-2.75%	Profit Rate-3.50%
FAB	Mortgage Loan	2.75%	3.50%
FAB	Mortgage Loan for Small Buildings	6.75%	-
Emirates NBD	Home Loans for UAE Nationals	3.04%	5.75%
Emirates NBD	Home Loans for Expats	3.04%	5.75%
Emirates Islamic Bank	Home Finance – Bina’a for UAE Nationals	1.75%	3.49%
Emirates Islamic Bank	Home Finance – Manzili	1.92%	3.49%
ADIB	Home Loans for UAE Nationals	Profit Rate-2.06%	Profit Rate-3.75%
ADIB	Home Loans for Expats	Profit Rate-2.06%	Profit Rate-3.75%
CBD	Mortgage Loan for Salaried	Profit Rate-2.18%	Profit Rate-3.54%
CBD	Mortgage Loan for Self-Employed	Profit Rate-2.18%	Profit Rate-3.54%
RAKBANK	Home In One	1.83%	3.49%
RAKBANK	Mortgage Home Loan	2.09%	3.99%
Mashreq Bank	Home Loan	2.99%	-
Standard Chartered Bank	MortgageOne	1.95%	3.53%
HSBC	New Home Loan	1.96%	3.59%
HSBC	Fixed Interest Rate Home Loan	3.59%	-

Types of Home Loans or Mortgages Loan in UAE

Both home loans and mortgages can be divided into several categories depending on the loan purpose and the mortgage loan interest rates available to them. Given below is a brief description of all types of home loans and mortgage loans available in the UAE:

• Residential Mortgages: As the name suggests, residential home loans in the UAE are used for buying or constructing a home to live in. This means that you are not allowed to rent out this property or use it for any commercial purposes. Moreover, you get the full ownership of the property only when you have paid off the loan completely. Residential home loans or mortgages are typically long-term and may go up to 25 years. You can also take a re-mortgage on a residential mortgage. 
• Non-Resident Mortgage: This particular type of mortgage is available for non-residents of the UAE. While all other kinds of mortgages can only be taken by citizens or residents, this one can be selected by other people living in the UAE on visas other than a resident’s visa. This category of home loan allows citizens from countries included in the pre-list approved by a financial institute to apply for the same. Both salaried and self-employed people can apply for these home loans in the UAE, where the financed amount goes up to 60% of the value of the property. 
• Fixed-Rate Mortgage: A fixed-rate mortgage comes with a fixed rate of interest, meaning that the interest charged on this type of home loan or mortgage in the UAE does not change over time. The interest is calculated on the initial principal amount of the loan. One of the best advantages of fixed-rate mortgages is that the rate remains the same despite market fluctuations. So even if the market goes down and mortgage loan interest rates rise, your interest amount won’t rise at all. 
• Variable Rate Mortgage: A variable rate mortgage or home loan in the UAE is charged with interest rates changing as per the market. If the base interest rate increases, the interest for your home loan will also increase. Similarly, if the base mortgage loan interest rates go down, you may get some of the lowest home loan interest rates possible in the UAE. It should be noted that a variable rate mortgage is only beneficial when you have expertise in markets and can predict the changes for the foreseeable future. 
• Reducing Rate Mortgage: Reducing rate mortgage comes with an interest rate that is charged on the remaining amount of the loan instead of the principal amount. This means that your interest amount reduces every time you pay an instalment of the loan. Such types of home loans in the UAE are beneficial if you think that you will be able to pay off the loan amount in early settlement. 
• Discounted Rate Mortgage: In some rare cases, discounted mortgage loan interest rates can be scored for your home loan in the UAE. These lowest home loan interest rates are reserved for first-time buyers in most cases and are slightly lower than the base Emirates InterBank Offered Rate. The discount is always applied on the base mortgage loan interest rate that a lender is offering. Discounted rate mortgage loans in the UAE are the best kind of mortgage a new homeowner can get in the UAE. However, make sure that you examine the terms of the loan carefully, 
• Capped Mortgage: Capped mortgages are a type of variable rate mortgage, where a cap is applied on the increment of the interest rate as per market fluctuation. This means that even if the interest rate of your home loan increases over time, it will not increase beyond the prescribed limit. 
• Re-Mortgage: You can easily secure a new home loan using the re-mortgage option. Most borrowers opt for re-mortgage when they want to get a longer repayment period or perceive a chance to get a lower mortgage loan interest rate. The concept of re-mortgage allows you to either take another loan to finance the existing one or transfer your current mortgage. 
• Offset Mortgage: Offset mortgage allows you to link more than one deposit account or credit card with your mortgage. The more money you have in your linked deposit accounts, the lesser interest you will be charged for the home loan in Dubai. However, the interest charged on offset home loans in the UAE is a bit higher than conventional mortgages. On top of it, if you opt for a convenient payment option, the money in your linked account will be transferred to the lender. An annual fee may also be applicable for offset mortgages in the UAE.  
• Investment Mortgage: This type of home loan in the UAE is obtained to buy properties meant to be an investment. The buyer can rent out these properties, use them for commercial purposes, or even resell them to generate revenue. Different rules and rates of interest may apply depending on the type of property and the way it is going to be used. You may have to check with the banks to get an exact idea of the rules applicable. 

How to Calculate Home Loan Interest and Easy Monthly Payments?

Calculating your home loan interest rate is a rather simple procedure, as all you need is the principal amount (loan amount), the home loan interest rate, and the tenure of the loan. Once you have all the required particulars, use the below-given formula to calculate the home loan interest rate in UAE:

(P*R*T)/100

Where,

P= Principal amount or loan amount 

R= Home loan interest rate, yearly

T= Time, in years

If you want to calculate monthly interest, divide the annual interest by 12 to get the monthly interest amount you will be paying. You can use the below-given formula to calculate the easy monthly payments of your home loan in Dubai:

P*R*((1+r) ^ n)/(1-(1+r) ^n)

Where,

P= Principal amount or home loan amount 

r= Monthly Home Loan Interest Rate in UAE

n= Home loan easy monthly payments to be created i.e., tenure of the loan

Home Loan & Mortgage Loan Calculator UAE

As previously described, calculating your home loan interest amount and easy monthly payments is a straightforward process, although it may prove lengthy. If calculating everything from the scratch using calculators is not something you want to do, consider using a home loan calculator. Home loan calculators in the UAE are popularly used to get an estimate of the easy monthly payments you will have to make when you take out your loan. 

These online calculators use basic information about your mortgage loan in Dubai and calculate an approximate amount for equal monthly payments of the loan. Most home loan calculators use mortgage loan interest rate, tenure of the loan, and the loan amount for calculations. The type of interest rate must also be specified – fixed or reducing. 

Top 10 Banks for Home Loans in UAE with Low-interest rate

Given below is a list of the top 10 banks you can consider while taking a home loan in the UAE:

Home Loan Eligibility Criteria 

Banks consider 4 major aspects when disbursing home loans in the UAE. Given below are the four criteria and their qualifying markers:

• Time Spent Living in the UAE: A minimum of 6 months must have been spent in the UAE.
• Duration of Employment in the UAE: The applicant must have been working in the UAE for at least 6 months. 
• Duration of Business in the UAE: If the applicant is self-employed, the business must be at least 2-3 years old. 
• Credit History of the Applicant: Notably, there are no hard-set criteria for credit history. However, the goal here is to maintain a healthy credit history with no missed payments and diverse credit products in your portfolio. You should strive for punctuality in all payments, as credit history and credit reports in the UAE also include your everyday payments like utility and phone bills. 

Note that banks may modify these basic home loan eligibility criteria per their requirements. For instance, some banks may require the applicants to have stayed in the UAE for at least 1 year to be eligible for applying. 

Documents Required to Apply for a Home Loan in UAE

The documents required to get a home loan in the UAE may differ as per your nationality, borrower status, and employment type. Given below is a segregated list of the documents required to get a home loan in the UAE:

 

How to Apply for a Home Loan in the UAE

Just like any other financial product available out there, you can apply for your home loan via both offline and online channels in the UAE. Here is a detailed description of the steps involved in purchasing your home loan from both these platforms:

Via Online Platforms

• Go to policybazaar.ae or the bank’s website and open the home loan section.
• Locate the lead form on the page and start your home loan application by filling it out. 
• Once you have filled out the online lead form of policybazaar.ae, you will be redirected to the quotes page of home loans in Dubai. All suitable options, as per the information you entered in the lead form, will be displayed here. 
• Scout through these options to discover the home loan option that suits your needs the best. Make sure that you check every important detail like mortgage loan interest rate and processing fee.
• Choose your mortgage or home loan amount and loan tenure. Once you have the interest rate, tenure, and loan amount, use an online mortgage loan calculator UAE to find out your easy monthly payments. 
• Run a final check about the terms and home loan eligibility requirements of the home loan you have chosen.
• Once everything is settled, select the home loan you want to proceed with, fill out the application form online, and upload all the required documents. 
• Your application will be forwarded to the home loan disbursal cell of the bank. Approval will arrive once everything has been verified. 
• The loan will be disbursed once the bank approves your application. 

Via Offline Platforms 

• Decide on the home loan or mortgage product that you want to apply for. 
• Visit a nearby branch of the bank or lender that you plan to work with.
• Obtain a home loan or mortgage application form from the branch, fill it out properly, and submit it at the assigned counter. 
• Keep all the documents with you when you visit the branch. Have a word with the authorised person to know about offline home loan application formalities in detail. 
• Once you have submitted the form, the bank will process your request and verify the documents you have submitted. 
• You will receive the approval after the verification and negotiations are complete. 

Processing of Home Loan in UAE

1. Filling Out the Application - The first step after deciding between a home loan and mortgage is choosing a product accordingly, and filling out an application form. The application must be accompanied by all the required documents specified by the home loan department of your bank. Submit your application via either online or offline platforms. 
2. Negotiations with the Bank - Submission of the application is followed by a crucial step in the form of a processing and discussion period. The bank goes through your documents and application and verifies their authenticity. Depending on the bank, it may take a few days for the completion of this process. Your bank may also require you to pay a visit for a one-on-one interview. This opportunity can be used to discuss and negotiate the interest rates with the bank. Negotiations are not a major part of the home loan department. However, you may have an attempt at it if you have an exemplary relationship with your bank. 
3. Verifications  - Once the bank has determined that you are a valid candidate with a substantial repayment capacity, it takes a few more days to verify every document and run a background check. While the bank may contact your employer to check your job status, it may also verify other things including your residence, workplace details, details of the employer, details of the business, immigrant status, etc.
4. Approvals for the Loan Application - Once all these formalities are completed, the bank provides you with an agreement letter or a letter of approval for the home loan. This letter will contain the approved maximum loan amount, the agreed-upon interest rate, tenure of the loan, type of interest rate, repayment mode, and other loan terms. You will get one copy of this letter, with the other one being kept by the bank.  You can use this letter of acceptance to search and finalise the property you want to buy. This temporary acceptance letter is of great use as it can be used as proof of funds to show at the time of finalising the sale. 
5. Finalising the Property  - Once you have your loan agreement, you can finalise the deal for your new home. As speculated above, sellers generally require you to present proof of funds before they sign the deal for the property. If you are yet to finalise the property you want to buy, you can use your loan agreement to negotiate the price of the house. 
6. Price Agreement with the Seller - Complete the signing of your deal with the seller and get the final quote for the property. You can also obtain the quote from the seller in written form to present it to the bank. Confirm the time and date of the purchase, and bring all the necessary property documents to the bank. 
7. Evaluation of the Property - The property that you plan to buy and the papers will now get evaluated by the bank, which will determine whether the property is worth the investment. If it is a property that is speculated to lose value in the future, the bank may ask you to find another one. You will be allotted time to find a new property. However, it should be noted that the approval will be given only after the evaluation is done and the property fits the bank’s valuation standards. 
8. Final Agreement - When all the documentation and formalities are done, the bank will prepare final agreement documents for you. You will have to sign these documents and get the bank’s official stamp. 
9. Loan Amount Disbursal - The final step here is the disbursal of the loan amount. Once the final agreement has been signed, the bank will send the approved amount to the property seller’s bank account and finalise the purchase of your home. Your easy monthly payments will begin once the loan has been disbursed. 

Features & Benefits for Home Loan in UAE

• Dual Types of Home Loan Interest Rates: Most home loans and mortgage loans in the UAE are available with two kinds of mortgage loan interest rates – fixed and floating aka reducing. The fixed home loan interest rate is typically lower than reducing rates and is charged on the principal amount of your home loan in Dubai. Reducing home loan interest rates in UAE, on the other hand, are charged on the remaining payable home loan amount. Borrowers can choose either of the two types of interest rates as per their requirements. 
• Discounted Mortgages: A unique feature of home loans and mortgages in the UAE is the discounted interest rates. This feature allows first-time homebuyers and loan takers to enjoy a special discount on base mortgage loan interest rates of the banks. The availability of this type of loan depends on the discretion of the bank. 
• Available for Multiple Purposes: Mortgages and home loans in the UAE can be taken for several other purposes than just buying and constructing a house for residential needs. You can take out a home loan to buy commercial properties, rental properties, and properties for investment reasons as well.  
• Transfer Facility: Your home loan balance in the UAE can be transferred to other banks using the balance transfer facility. If you believe that you are getting a lower interest rate, you can also consider taking a re-mortgage. 
• High Loan Amount: Home loans in the UAE disburse the highest amount out of all the available types of loans. You can get a loan amount as high as AED 35,000,000 in the UAE, or higher in some cases. 
• Long Loan Tenure: Given the high loan amount disbursed by home loans in the UAE, the tenure allotted for these loans is exceptionally long to ease the repayment. Borrowers can easily get 20-25 years of home loan and mortgage long tenure in the UAE. 
• Insurance Protected: Home loans and mortgages in the UAE are supposed to be protected by mortgage insurance. Borrowers are either required to get life or mortgage insurance on their own or the bank can provide them with one with the loan itself. In case you opt for the latter one, an insurance premium is charged with the loan repayment amount. 
• Capital Appreciation: Home loans in the UAE allow everyone a chance to take advantage of the exceptional capital appreciation that is prevalent in Dubai. This aspect is made possible by the fact that the retail market of Dubai is one of the world’s fastest-growing markets and a hub for retail investors. Buying a house using your home loan can give you a chance to experience the benefits of capital appreciation in Dubai. 
• Ease of Buying Your Dream Home: Purchasing your dream house is easier with a home loan in Dubai backing you up. While buying a house is a big financial responsibility and may take a major part of your savings, you can always save your hard-earned money for emergencies by buying your home using a mortgage amount instead. 

Quick Tips to Avail the Right Home Loan/Mortgage Loan in UAE

The only challenge with having ample options is that it is much more difficult to find the perfect pick for you. In such cases, it becomes essential to take proper steps and explore each viable option before making a decision. Given below are some quick tips to help you choose the perfect home loan product that checks all your boxes:

• Window Shop a Little: There is no harm in looking around for a while before you make a final decision about your home loan. Window shopping is actually an excellent practice to help you choose the best possible home loan. Check out the different available options, and record the interest rates offered for them. Draw a detailed comparison for all the top options you pick. Finally, try to talk to other customers and borrowers with the same product. 
• Review Terms and Conditions: When you are indulged in comparing different home loan products, take some time out to read and understand the terms of the product as well. Read the fine print of the terms of your chosen home loan product. If required, get a finance and loan expert to help you ensure that everything is transparent enough to proceed. 
• Compare Lenders: Once you finish the comparison of the home loan products, it is time to compare lenders. Check out the type of services offered by the lender, and verify if the terms are transparent enough. Similarly, you should verify the level of flexibility you can enjoy with a certain lender. If possible, talk to a few existing customers or borrowers about their experiences with the lender. 
• Get Pre-Approval: Scoring pre-approval for your home will be highly beneficial as it facilitates the disbursal process later when you have the property you want to buy. You won’t need any concrete data to get pre-approval. However, basic information like salary, age, identification, etc., might be requested 
• Compare the Types of Interest Rates: Compare and find out which of the two types of interest rates suits you the best. If you think you will be able to make extra repayments with the early settlement feature, using a reducing rate of interest makes more sense. If not, the fixed rate of interest and the reducing rate of interest will be more or less the same for you. 
• Check Out Mortgage Insurance: Getting proper mortgage insurance is mandatory to get home loans in the UAE. While you are searching for the perfect home loan product in the UAE, also make sure to check out the life and mortgage insurance options. The best option here is to find out the individual requirements related to mortgage insurance of the bank by discussing them with it. 
• Do Not Take Added Products: Lenders and banks often offer additional products along with home loans, with mortgage insurance being an example. However, while it may appear convenient, try to steer clear of these products as they won’t be cost-effective for you. Getting the mortgage insurance on your own after a thorough comparison is usually an efficient option. 
• Affordability: Even though you are taking a home loan to buy your new house, do not go overboard with the spending. Keep affordability in mind when you are signing on your home loan documents. As there is always a possibility of you spending most of your young life repaying this loan, take only the amount you know you will be able to repay comfortably. 
• Repayment Tenure: Choosing a short repayment tenure may lead you to missed repayments. On the other hand, choosing an excessively long repayment tenure may get you stuck with repayments for a long time. Select your home loan tenure only after careful consideration. Take your repayment capabilities and anticipated growth in income over the future into account when you choose your repayment period. 

Steps to Compare Home Loan in UAE

Properly comparing home loans is essential for ensuring that you get nothing but the best-suited products. We have prepared a small and quick guide to easily and effectively compare your home loan products in the UAE and choose the right one as per your requirements. Follow the below-given steps to properly compare different home loans in Dubai available:

• Visit policybazaar.ae or the website of the provider, if you have already finalised one.
• Fill out the lead form available in the home loan section and get the list of available home loan options. 
• Check the minimum salary requirements for each product and see which one you are eligible to get. 
• View out the interest or profit rate for each product you find suitable. Pick the home loan option that fits your budget the best. 
• Use an online easy monthly payment mortgage loan calculator UAE to find out the estimated instalments to be paid every month. 
• Examine both the repayment period and the grace period offered by the bank for missed payments. 
• Analyse the other requirements that come with the terms of the product such as mortgage insurance. 
• Once you have carefully examined each element, approach us or the bank to get pre-approval on your loan. Finalise the property you want to purchase and complete the final formalities.

Why is Age an important factor while applying for a Home Loan in UAE?

This may be a surprise but age plays a crucial role when home loans are concerned. While generic things like salary, debt to income ratio, credit score, etc., are noted, lenders also consider the age of the borrower when approving home loan applications. The reason for this lies in the fact that home loans in Dubai are the only credit products with tenure as long as 25 years. Consequently, it is vital for the lender to analyse your remaining earning years. 

With the retirement age being 65 years in the UAE, older applicants will have lesser earning years ahead of them. Consequently, older applicants tend to get shorter tenure compared to younger candidates. For this reason, people in their 30s are the most desirable candidates for home loans in the UAE. Candidates in their 30s usually have working experience of a few years, are financially responsible, and still have quite a few earning years ahead of them. 

Some DOs and DON’Ts for When Applying for Home Loans in Dubai