Home Loan Top Up Loan in UAE

Home loan top up, as the name suggests, is a facility available for existing home loan borrowers who need extra funds on top of their existing home loan. These funds can be used for a number of purposes like renovating the property, buying new furniture, extending home, and more. Borrowers can get the top up loan without any additional collateral or security. Generally, the interest rates for top up loans are minimal and have the same tenure as the borrowers’ regular mortgage loan. The lowest home loan interest rate in the UAE starts from as low as 2.5%. The rate of interest for home loan top up is highly dependent on the outstanding loan amount of the borrower. We will cover all important details related to home loan tops in this article starting with the best home loan top interest rated in UAE. Let’s begin.

Best Home Loan Top Up Interest Rates in UAE

Given below are the home loan top up interest rates in UAE for some of the most popular providers:

Banks	Top-up loan interest rate
HSBC Home Loan	7.24%
Emirates NBD Home Loan	2.55%
Mashreq Home Loan	3.99% for AED 100,000

What is a Top Up Loan?

Top up home loans are the additional loans offered by banks to their existing home loan borrowers. Most banks have their terms and conditions for top up loans stating that the amount should only be used for the purposes related to the home against which the loan is taken. Some banks many not impose any such restrictions on borrowers. Let's learn about top up mortgage loan in UAE with an example.

Suppose you've borrowed a home loan in UAE worth AED 5 million for a tenure of 15 years. After a couple of years of repayment as per the schedule drawn by the bank, the outstanding principal balance on your loan remains AED 3 million. Now, you want to get your home renovated or extended. At this point, you can apply for a home loan top up to wrap up the renovations quickly instead of applying for a fresh personal loan with higher interest rates.

In other words, a top up loan is provided by a bank or a lending institution on top of your existing loan amount. You can think of this facility as the top up or add-on facility available for mobile recharge services in the UAE when you are running low on talk time or data.

What are the Advantages of Home Loan Top Up?

Home loan top up offers several benefits which are mentioned as follows:

• Home loan Top up interest rates are highly affordable as compared to other small loans like personal loans
• Easy and quick loan sanction process 
• No requirement of additional security or collateral 
• Some banks may allow home loan top up amount to be used for business or personal use 
• Useful for several home-related purposes

What is the Eligibility Criteria for a Home Loan Top Up in UAE?

The eligibility criteria for getting a home loan top up in UAE is the same as the eligibility criteria for a regular home loan. You can easily avail of it from the bank you've borrowed your existing loan from.

Note that the eligibility criteria can sometimes vary from one bank to another. Here are some of the general requirements:

• You should already have an active home loan with the same bank or financial institution. 
• Your credit Score should fall into the high or very high category and the credit history must showcase an on-time repayment record. 
• You should have a satisfactory credit report. 
• Other eligibility criteria may include minimum salary, age and employment that can vary at your lender’s discretion.

Top up Loan: Meaning, Features, Benefits & Eligibility

How to Apply for a Home Loan Top-Up in UAE?

There are multiple ways in which you can apply for a top up mortgage loan in UAE. Generally, the application methods vary from bank to bank.

Below are the common ways to get a top up home loan:

• Apply with us on our official website Policybazaar.ae to get the best top loan interest rates and swift disbursal of funds. Our use-friendly platform offers you maximum agility. The application process is swift and requires minimal efforts. 
• Visit the nearest branch of the bank you've borrowed your existing loan from and apply offline. Although the process is straightforward, it often requires a lot of time and effort. 
• Apply online by visiting the website of your bank and follow the simple application process.

Important Things to Consider When Getting a Home Loan Top Up in the UAE

• In case you're applying for a top up home loan with the same bank, make sure to properly research the interest rate it offers. Also see if interest rates offered on personal loan are lesser. If yes, consider getting a personal loan instead of topping up your home loan. 
• Compare the home loan top up rates from multiple banks and consider refinancing with other banks offering lower interest rates. This will save a great deal on the interest amount. Note that you will need to first transfer your existing home loan to the bank/lender you have chosen for the top up loan. 
• Look for the highest limit of top up that can be availed along with the varying interest rates on the same. Most banks approve the same home loan top up interest rates as the ones you have for your original home loan. Other may charge higher interest rates. 
• You can prepay the top up home loans without having to pay any charges.

In a Nutshell

A home loan top up is a great way to deal with the additional expenses related to your home. You can avail of it without having to offer any collateral or security. We have discussed everything you need to know before applying for a home loan top up. We hope it helps. Also, if you're looking for an affordable home loan in UAE, simply head to our home loan section to explore the options or connect with our in-house experts to get some guidance on the subject. Policybazaar UAE is always there to help you get the best home loans, top ups or full-fledged products, at the best possible interest rates.