RAKBANK Home & Mortgage Loan Eligibility in UAE

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  • Dubai
  • Abu Dhabi
  • Sharjah
  • Ras Al Khaimah
  • Ajman
  • Other

The RAKBANK, or Ras Al Khaimah Bank, started its journey as a corporate bank in 1976. The bank expanded its service range to retail and personal banking services after a few decades. RAKBANK offer several highly-preferred credit services and products including credit cards, personal loans, etc. in their personal banking section.

 One such product is RAKBANK home loans. The bank offers high loan amounts and flexible loan tenure. The application process is pretty straightforward and requires minimum documentation. Getting a home loan from RAKBANK will require you to clear some eligibility criteria. This article will list every eligibility check post you must clear to get yourself a RAKBANK home loan. Let’s begin.

Types of RAKBANK Home Loans 

Home loans are the perfect financial tool to pave your way toward having a house of your own in the UAE. There are two types of home loans you can get from RAKBANK:

1. Home in One- " RAKBANK Home in One" lets you link your current account to your mortgage. The higher balance you have in your current account the lower interest you will be paying for your RAKBANK mortgage loan. This helps reduce the loan instalment amount you pay every month. In addition to that, your current account balance earns interest at a higher rate. You can withdraw from the account any time you like and enjoy all the basic benefits of a current account including a free debit card, cheque book etc.  

2. Home loan- This RAKBANK home loan is devised to help you get a property in Abu Dhabi, Dubai and Ras al Khaimah. The product comes with competitive variable and fixed rates of interest and high loan amounts. On top of this, the loan also offers benefits such as discounted rates on life insurance, Emirates Skyward World Elite credit card, discounted evaluation fee and much more

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RAKBANK Home Loan Application Eligibility Criteria

Age is a crucial factor when it comes to eligibility criteria for a RAKBANK home loan along with monthly salary. The bank has predefined eligibility criteria for home loan applications. Refer to the below table to get a quick gist of it:

Parameters 

Eligibility Criteria

Minimum age

21 years of age

Maximum age

60 years for Expats

65 years for UAE nationals

Minimum Salary Criteria

AED 15,000 per month

Employment Type 

Salaried and self-employed individuals

Nationality 

UAE residents and nationals both

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Factors that Impact RAKBANK Home Loan Approvals

Apart from the basic eligibility criteria applicable for RAKBANK applications, a few other factors may influence approval for your application. Let's see the elements that are not noticed but impact your eligibility to get a RAKBANK personal loan:

  • Age- Age plays an important role in determining your eligibility to apply for a RAKBANK home loan, as explained in the previous section. However, it also impacts your chance of getting approved for this loan you have applied for. Several banks, including the RAKBANK, prefer younger individuals who are in their early earning years or somewhere in the mid. These candidates will have longer to repay the loan since they have more earning years left as compared to older applicants. While you will be able to submit your application even if you are near your retirement, you may have to compromise on the loan terms.  
  • credit ScoreYour credit score not only impacts your eligibility to apply for a home loan but also the chances of getting your application approved. A good credit score represents you as a creditworthy candidate who handles their finances responsibly. Banks always check your credit score before proceeding with your home loan application. It helps them analyse your repayment patterns and capacities. Most banks require the candidate to have at least a 710 credit score for home loans. Some banks may accept a lower score as per their risk appetite but that may lead to compromised loan terms for you. 
  • Income- You will get approved for a RAKBANK home loan if you satisfy the minimum income eligibility criteria. However, your actual income will determine the amount of loan you can get from the bank. RAKBANK and most other banks offer home loan amounts as multiple of your monthly or yearly salary. The higher your salary the higher the loan amount you can get approved from the bank. 
  • Existing debts- Having multiple active loans on your account can decrease your chances of getting a long-term loan product like a home loan. If you already have ongoing liabilities, you will have lesser disposable income to put into home loan repayment which increases the risk of payment defaults. 
  • Profession- An unusual addition to the list, your occupation or profession can also impact your chance of getting approval for your home loan application. That’s because your occupation often reflects your repayment capabilities and the level of job security that you enjoy. Both these things are crucial to ensure regular repayment of the loan. 
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FAQ's

Q1. Which factors influence mortgage loan payment amounts?

 Several factors can impact your mortgage payment amount including the down payment ratio, total loan amount, interest rate, repayment period and the payment schedule.

Q2. How long does it take RAKBANK to approve loan applications?

RAKBANK takes up to 14 days to evaluate loan applications after all relevant documents are submitted.

Q3. Do you have to be an existing customer of RAKBANK to apply for a RAKBANK mortgage loan?

No. it is not mandatory. Anyone whether an existing or new customer of RAKBANK can apply for home loans.

Q4. Do I have to transfer my salary to the RAKBANK account to get a home loan?

Not it is not a mandatory requirement to transfer your salary. Loans are available in both salary transfer and non-salary transfer variants.

Q5. Is property insurance required for a RAKBANK mortgage loan?

Yes, life and property insurance are mandatory to get a RAKBANK mortgage loan.
 

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