FAB Islamic Home Finance

In today's ever-evolving financial landscape, the concept of Islamic finance has gained significant traction worldwide. Combining the principles of Sharia law and modern banking, it offers a unique approach to financial services, one that aligns with the ethical and moral values of Muslim individuals. 

First Abu Dhabi Bank (FAB), a leading financial institution in the United Arab Emirates, has emerged as a prominent player in this realm, providing innovative and Sharia-compliant solutions for various financial needs.

In particular, FAB's Islamic home finance has empowered countless individuals and families to fulfil their dream of homeownership while adhering to Islamic principles. In this article, we will explore the features and benefits of First Abu Dhabi Bank's Islamic home finance and highlight the bank’s commitment to ensuring a seamless experience for customers seeking housing finance solutions.

Features of FAB Islamic Home Finance

Here are the key features of First Abu Dhabi Bank Islamic home finance -

• Maximum Finance Amount - up to AED 20,000,000 or up to 85% of the property value for the first-time home buyers
• Maximum Finance Repayment Tenure - up to 25 years
• No approval-in-principal fee
• Fixed profit rate for up to 5 years
• Shariah-compliant home finance
• Profit rate - Fixed Rate: beginning from 3.99%; Variable Rate: Profit Rates starting from 3-month EIBOR + 0.55% for the 1st year and 3-month EIBOR + 1.50% per year from the 2nd year
• Minimum Monthly Income Required - AED 15,000 (for salaried employees); AED 25,000 (for self-employed individuals)
• Processing Charges - 0.5% (excluding VAT) of the overall finance amount

Eligibility Criteria for FAB Islamic Mortgage Loan

Listed below are the eligibility criteria for this Islamic home loan in the UAE -

• Minimum Monthly Income - AED 15,000 (for salaried employees); AED 25,000 (for self-employed individuals)
• Minimum Age - 21 years
• Nationality - UAE Residents

Documents Required to Apply for FAB Islamic Home Loan

Keep the following documents ready when applying for a FAB Islamic home loan in the UAE - 

• Duly filled-in home finance application form
• Property-related documents
• Income-related documents
• Identity Proof - Valid Emirates ID, Passport, and UAE residence Visa
• Other documents that the bank finds necessary

Profit Rates Applicable to FAB Islamic Mortgage Loan

Tabled below are the profit rates applied to the First Abu Dhabi Bank Islamic mortgage loan -

Profit Rate Type	Amount
Fixed Rate	Starting from 3.99%
Variable Rate	Starting from 0.55% + 3 months EIBOR for the 1st year and 1.5% + 3 months EIBOR 2nd year onwards

Fees and Charges Applied to FAB Islamic Home Finance

The followings are the fees and charges levied on FAB Islamic home loans in the UAE -

Description	Amount
Early Finance Settlement Fee	1.05% of the remaining finance amount (up to AED 10,500)
Charges for Issuing Liability Letter	AED 89.25
Non-standard Statement or a Copy of the Original Document	AED 105
Charges for Issuing a No Objection Certificate	AED 157.50
Clearance Letter Charges	AED 99.75
Processing Charges	1.05% of the finance amount
Charges for Deferring Instalment	Free
Charges towards Property Takaful Contribution	0.0525% of the Property’s Value per year
Other Certificates Issuance Fee	AED 78.75
Administration Fees for Property Swap (inclusive of valuation)	AED 1,386
Partial Finance Settlement Charges	1.05% of the amount already paid (up to AED 10,500)
Request for Other Bank Letters	AED 94.50
Life Takaful Contribution Amount	Charged monthly on the outstanding finance amount (0.0112% for AMAN, 0.0132% for Noor Takaful, and 0.0140% for Salama)

FAB Home Loan Calculator

To know how much you can borrow as well as the breakdown of the monthly instalments, you can use the FAB home loan calculator. This is an online home loan calculator that helps you understand what difference overpaying on your home loan can make. 

Simply provide the following details to compute the monthly instalments and overall FAB Islamic home finance amount with this calculator -

• Value of the property
• Downpayment
• Finance repayment tenure
• Annual profit rate

Terms and Conditions to Note When Applying for FAB Islamic Home Finance

Here are some terms and conditions applied to the First Abu Dhabi Bank Islamic  mortgage loan -

• The property against which you apply for the finance should be free from other securities.
• As the property owner, you have the sole and legal right over the property. No third party should have made a claim over the property.
• There should be no breach of law and regulations that can negatively affect the value, saleability, or use of the property.
• There should be no other agreement, interest, or right over the property that can adversely affect the property’s value. 
• You are not allowed to do the following with your property at any time -
  • Sell, transfer, or assign the possession of the property or grant any security or other profits in the property to a third party.
  • Lease or partly sell the property or allow anyone else apart from you and your immediate family to occupy the property.
  • Remove fixtures and fittings from the secured property (given that these removals will detract from the property’s value). 
• If you default on your instalment repayments, a late payment donation will be charged and the bank will take legal steps if you are unable to comply with the reminder notices issued by First Abu Dhabi Bank.
• Any legal step taken against you can hamper your credit Score. This, in turn, can limit your ability to apply for finance or a loan in the future. 
• The property that you put in as a mortgage can be foreclosed and you would have to incur the associated costs. You will become responsible to settle any lagging once the property is sold.
• You are liable to pay early settlement charges if you settle the home finance completely early. 

How to Apply for FAB Islamic Home Loan in UAE?

Policybazaar.ae is a third-party aggregator platform that offers a quick and seamless home loan application process in the UAE. This online portal hosts the best home loans in the UAE from the leading banks and lending institutions in the country. 

To apply for the First Abu Dhabi Bank Islamic home finance, click on the “Home Loan” tab on the home page or click on the same option from the Banking Products tab present on the menu bar. You will be directed to the lead form. Promptly and accurately fill out the form and click on the ‘View Quotes’ button. 

You will be directed to our home loan quotes page. You can go through the features of the First Abu Dhabi Bank Islamic home finance and compare the plans to other options. Once done, click on the ‘Apply’ tab across the product and follow the instructions thereon.

Click here to Apply for FAB Home Loan in UAE

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