Home loans in UAE
Planning to buy your dream home is exciting — but choosing the right mortgage can feel overwhelming. With so many banks, different rates, and complex terms, it’s easy to get confused or unsure about which option truly suits your needs.
What is a Home loan
A home loan is a type of financing offered by banks and financial institutions to help individuals purchase a home or residential property. In the UAE, home loans usually come with either a fixed interest rate or a variable interest rate, and borrowers repay the loan through monthly installments until the full amount is settled.
A home loan is especially beneficial for individuals and families who want to own a property but may not have the full amount available upfront. It makes homeownership more accessible by allowing you to spread payments over several years while securing the property you desire.
Compare 60+ Home Loans at the Best Rates
Types of Home Loans & Mortgage Loans in UAE
Here is a general categorization of the types of home loans in the UAE –
- Fixed-Rate Home Loan: A fixed-rate home loan is a type of loan where the interest rate remains the same throughout the loan tenure. This type of loan provides stability and predictability in terms of monthly payments and is suitable for those who want to plan their finances in advance.
- Variable-Rate Home Loan: A variable-rate home loan is a type of loan where the interest rate is subject to change during the loan tenure based on market conditions. This type of loan provides flexibility in terms of interest rates, which can either go up or down, depending on the market conditions.
- Islamic Home Financing: Islamic home financing, also known as Sharia-compliant home financing, is a type of financing that is based on the principles of Islamic finance. It is a type of home financing that is free from interest (riba) and is structured as a partnership between the bank and the borrower.
Not all types of loans are available with every bank in the UAE. It is recommended to check with the bank or financial institution for their specific types of home loans and mortgage loans. You can compare different products from the top banks in the UAE on Gulf Policy Souq to make an informed decision.
Best Mortgage Loans in UAE
Several banks in the UAE offer multiple types of home loan options with attractive interest rates and flexible repayment terms. Listed below are some of the top banks offering highly preferred home loan products in the UAE.
RAKBANK Home Loan
FAB or First Abu Dhabi Bank provides different types of home financing solutions, classified into two categories: FAB Mortgages for First Time Home Owners and Mortgages for Existing Homeowners. Below, we have listed the main types of loan options highly preferred by UAE residents:
Home Loans for non-UAE residents
- Maximum loan amount: AED 10 million
- Flexible repayment tenure
- Simple eligibility criteria
- Competitive variable rates
Home Loan for Residences and Investments in UAE
- Fixed interest rate starting from 3.99%
- First-time buyers can save up to AED 25,000 on processing fees
- Enjoy a 180-day grace period by transferring your mortgage to FAB
- High financing option of up to 85% for first-time buyers
First Abu Dhabi Bank Mortgage Loan
RAKBANK allows you to buy your dream property with excellent loan options, including Home Loan and Home in One. Given below are the key features of the loan options:
Home in One
- Interest rate starting from 4.39%
- Processing fees- 0% for buyout loans and 0.5% for salaried and self-employed applicants
- Minimum Salary: AED 15,000 for salaried applicants and AED 10,000 for single and joint expats
- Maximum Loan Amount: AED 20 million for self-employed and AED 13 million for salaried applicants
Home Loan
- Low interest rate, starting from 3.89%
- Processing fees- 0% for buyout loans and 0.5% for salaried and self-employed applicants
- Loan tenure- Up to 25 years
- Minimum Salary: AED 15,000 for salaried applicants and AED 10,000 for single and joint expats
- Maximum Loan Amount: AED 20 million for self-employed and AED 13 million for salaried applicants
Standard Chartered Bank Mortgage Loan
With Standard Chartered Bank, you can avail of a mortgage loan on flexible terms and enjoy significant benefits. The bank offers two types of finance solutions:
Home Suite
- Maximum loan amount- AED 18 million
- Competitive interest rate
- Simple documentation
- Maximum loan tenure- 25 years
- Pre-approval facility
Saadiq Home Finance
- No processing fees
- Competitive profit rate
- Quick loan processing within 2-7 days
- Flexible repayment tenure of 25 years
Emirates NBD Home Loans
Emirates NBD offers home loan solutions for both Emiratis and expats with flexible repayment terms. Here, we have listed the top options with their key details:
Home Loan for UAE Nationals
- Minimum salary- AED 10,000
- Finance up to 85% of the property value or get a loan amount of up to AED 25 million
- Finance option for government housing programmes
- Life and property insurance facility
- Free partial settlement of up to 20% of the loan amount
Home Loan for Expatriates
- Finance up to 80% of the property value
- Get a loan up to AED 25 Million or 84% salary multiples (whichever is lower)
- Free partial settlement of up to 20% of the loan amount
- Minimum salary- AED 15,000
- Co-borrow facility
- Life and property insurance facility
Emirates Islamic Bank Home Finance
Emirates Islamic Bank offers an array of home finance solutions that fulfil the diverse needs of residents. Mentioned below are the top choices among residents in the UAE:
Home Finance Bina’a for UAE Nationals
- Finance up to 85% of the property value
- Maximum repayment tenure- 25 years
- Enjoy a high finance amount
- Attractive profit rate
- Minimal documentation
- Takaful coverage
Home Finance Manzili
- High finance amount- Up to 80% of the property value for expats and 85% of nationals
- Tenure: Up to 25 years
- Competitive profit rates
- 1% processing fee
- Life takaful availability at a low rate
Features & Benefits of Home Loans in UAE
Features
- Loan Amount: With any of the best home loans in the UAE, you can get a loan amount of up to 85% of the property value or purchase price.
- Long and Flexible Repayment Tenure: Home loans in the UAE usually have a repayment tenure of up to 25 years which can be adjusted according to the borrower’s financial situation and corresponding interest rates.
- Interest Rates: Home loan interest rates in the UAE are competitive and can be either fixed or variable. As a customer, you can opt for the one that suits you best.
- Processing Fees: Banks in the UAE charge a nominal processing fee (generally of up to 1% of the loan amount) for home loans.
- Eligibility Criteria: Banks in the UAE have specific eligibility criteria for home loans which may include age, income, employment, credit score, nationality, and so on.
- Co-applicants: Several banks in the UAE allow co-applicants for home loans which can enhance your chances of clearing the loan eligibility criteria and may also result in a lower interest or profit rate.
Benefits
- Home Ownership: A home loan in the UAE can help you own a home easily. A house can be a great long-term asset and a secure investment solution.
- Affordable Repayment Options: Home loans in the UAE offer affordable repayment options, which means that you won’t have to worry about restricting your monthly budget to manage instalments each month.
- Flexible Repayment Tenure: Home loans in the UAE offer a flexible repayment tenure, which allows borrowers to choose a repayment tenure that suits their financial conditions and planning. With loan repayment tenures going up to 25 years, you can comfortably repay the loan.
- Competitive Interest Rates: Home loan interest rates in the UAE are competitive, which makes it quite affordable for individuals to get home loans in UAE.
What is a Home Loan Calculator?
Buying a home in the UAE can be complex but a mortgage loan calculator simplifies it by providing quick and accurate estimates of your monthly mortgage payments. This essential tool helps you plan your finances, compare different loan options, and understand the impact of different interest rates and loan terms.
Whether you’re budgeting for your dream home or preparing for negotiations with lenders, a home loan calculator offers you the clarity to make a well-informed decision.
How Does the Home Loan EMI Calculator Work?
To determine your monthly home loan EMIs in UAE, you can use the following formula:
P x R x (1+R)^N / [(1+R)^N-1] where-
- P = Principal loan amount
- N = Loan tenure in months
- R = Monthly interest rate
The rate of interest (R) on your loan is calculated per month.
How to Use UAE Home Loan Calculator?
Using an online house loan calculator is hassle-free and effortless. Here’s how to get your loan details in just a few steps:
- Step:1 Open your bank’s website.
- Step:2 Move to the mortgage loan calculator section.
- Step:3 Input the correct details of your loan.
- Step:4 The final amount will be displayed immediately.
What are the Benefits of Using Home Loan Calculator UAE?
Using a home loan calculator in the UAE offers numerous benefits, making it an essential tool for making quick and efficient decisions:
Quick and Easy Estimates
A home loan calculator gives you instant estimates of your monthly payments. By entering basic details like loan amount, interest rate, and tenure, you can quickly determine your monthly EMI. This instant feedback helps you plan and manage your budget more effectively.
Financial Planning
With a mortgage calculator UAE, you can plan your finances by knowing the different loan amounts and interest rates on your monthly budget. You can reset the values to see how changes in loan terms impact your instalments, ensuring you’re prepared to finance your house.
Comparison Shopping
Using a home loan calculator UAE lets you compare different loan options. By inputting the terms of different loans, you can easily identify which one fits your financial situation best. With this, you can choose the most cost-effective option.
Time-Saving
Instead of manually finding your monthly payments or visiting multiple banks, you can quickly get estimates with a mortgage calculator UAE without much hassle. This efficient tool saves time and simplifies the home-buying process.
Which Factors Affect the Home Loan Monthly Instalments?
The top aspects that highly influence the monthly instalments of a mortgage loan in the UAE are as follows:
- Loan Amount – The total amount borrowed significantly impacts your monthly payments. Larger loans result in higher monthly instalments.
- Interest Rate – Higher interest rates lead to higher monthly instalments and vice-versa. Rates can be fixed or variable, affecting the consistency of your payments.
- Loan Tenure – Longer tenures reduce monthly instalments but increase total interest paid over time, while shorter tenures do the opposite.
- Down Payment – The initial amount paid upfront. A higher down payment reduces the loan amount, thereby lowering monthly instalments.
- Property Value – The value of the property can influence the loan amount and interest rate offered, as banks assess risk based on the property’s market value.
- credit Score – Your credit score affects the interest rates you qualify for. A higher credit score can qualify you for lower interest rates, reducing monthly payments, while a lower score might result in higher rates and instalments.
- Additional Costs – Fees such as insurance, maintenance, and property taxes can affect your total monthly expenditure, influencing the total cost of homeownership.
How to Calculate Your Home Loan In UAE?
Calculate Your Loan / Mortgage Payments
Your Results:
Monthly payment
0
Total payment
0
Total Interest
0
Save results:
Eligibility Criteria for Home & Mortgage Loan in UAE
Home loans in the UAE are available to both UAE nationals and expats who meet certain eligibility criteria set by banks and financial institutions. Although these criteria vary among banks and lending institutions, the general eligibility requirements include the following –
| Eligibility Criteria | Details |
|---|---|
| Nationality | UAE Nationals and Expats |
| Age | 21 – 65 years |
| Minimum Salary | AED 10,000 to AED 15,000 per month |
| Employment Type | Salaried and self-employed individuals |
| Work Experience | 6 months to 1 year |
| Credit Score | Typically more than 650 |
| Loan Amount | Up to 85% of the property value |
| Repayment Tenure | Up to 25 years |
Note: As mentioned earlier, the eligibility criteria are different for each bank and financial institution in the UAE. The above table provides a general overview of the eligibility criteria for home and mortgage loans in the region. It is recommended to check with the bank or financial institution for their specific eligibility criteria before applying for a loan.
Documents Required for Home Loans and Mortgage Loans in UAE
Listed below are the documents generally required for home loans in UAE –
- Completed application form
- Passport copy
- Emirates ID
- Visa Copy (for expats)
- Salary Certificate
- 3 or 6 months’ bank statements
- Credit report
- Property documents
- Sale/purchase agreement
- Title deed
- Valuation report
Important : The documents required for home loans and mortgage loans may vary between banks and financial institutions in the UAE. The documents mentioned above provide a general overview of the requirements for the home loan. It is recommended to check with the bank or financial institution for their specific documentation requirements before applying for a loan.
Fees and Charges for Home Loans & Mortgage Loans
Check out the table below for the general schedule of fees and charges applicable to home loans in the UAE –
| Type of Fees & Charges | Amount or Specification |
|---|---|
| Processing Fees | 1% of the loan amount |
| Valuation Fees | Around AED 3,500 |
| Early Settlement Fees | 1% of the outstanding loan amount or AED 10,000 (whichever is less) |
| Late Payment Fees | Typically around 2% of the overdue amount or a fixed amount charged by the bank |
| Insurance Fees | Vary among banks or financial institutions |
Keep in mind that the actual schedule of fees may change over time and vary among banks.
Get the Best Home Loan from the Top UAE Banks
Citi Bank Credit Card
First Abu Dhabi Bank
Standard Chartered Bank
HSBC
ADCB
Liv
Emirates NBD
Invest Bank
RAK Bank
ADIB
Commercial Bank of Dubai
Dubai Islamic Bank
Sharjah Islamic Bank
Finance House
Ajman Bank
deem
Dubai First
NBQ
Emirates Islamic
Emirates Islamic
CBI
NBF
Al Hilal Bank
United Arab Bank
Arab Bank
Al Mawarid
AAFAQ
Mashreq
Bank of Sharjah
Wio Bank
Understanding Home Loan Rejection
Home loan rejection can certainly be a frustrating experience. However, there is no need to lose hope. You can always improve your chances of securing a home loan by taking a few simple steps in the right direction.
Here are some common reasons why such rejections may take place –
- Poor credit score: A low credit score is one of the most common reasons for home loan rejection in the UAE. This is because home loans involve high loan amounts, which translates into a higher risk for the provider. As a result, banks and financial institutions generally require a credit score of 650 or more to approve home loans to ensure the creditworthiness of the applicant.
- Low income: Banks and financial institutions in the UAE have minimum income requirements for home loans. If your income is below the required limit, your application can be rejected straightaway.
- High debt-to-income ratio: Your debt-to-income ratio is the percentage of your monthly debt obligations against your income. If your debt-to-income ratio is on the higher side, your home loan application can be rejected.
- Employment status: Banks and financial institutions in the UAE prefer applicants who have a stable employment history. So if you have frequent job changes or gaps in employment, your home loan application may be rejected.
- Incomplete documentation: If you have not submitted all the required documents with your application or if the documents are not in order, you can face rejection.
If your home loan application is rejected, you can contact the bank or financial institution to understand the reasons for rejection and take steps to improve your eligibility. Alternatively, you can consider applying for such a Loan with another bank or financial institution after addressing the issues that led to rejection.
What to Do If Your Home & Mortgage Loan Application is Rejected in UAE?
If your home loan or mortgage loan application is rejected in the UAE, you can follow a few steps like the following –
- Find out the reason for rejection: Several banks may tell more about the reasons for which they rejected your application. Thus, before proceeding with other steps in this list, make sure to connect with the concerned bank or loan provider to see if you can find out more about the reasons for rejection. This can help you identify the specific issues that led to the rejection and take steps to address them.
- Improve your credit score: If your credit score was the reason for the rejection, you should certainly work on improving your credit score. This can be done by paying your bills on time, maintaining a proper credit utilisation ratio, checking your credit report for errors, and more.
- Reduce your debt-to-income ratio: If your debt-to-income ratio was the reason for rejection, work on reducing your debt against your income. You can consider paying off some of your existing debt or increasing your income to improve your debt-to-income ratio.
- Increase your income: If your income was the reason for rejection, consider increasing your income. This can be done in a plethora of ways – taking up a second job, negotiating a higher salary at your current job, and more.
- Consider a co-applicant: If you have a low income or poor credit score, you can always consider adding a co-applicant with a good credit score and high income to your loan application to improve your chances of approval.
- Apply with another bank or financial institution: While you should try out all the ideas discussed above, sometimes, it can make sense to go with another financial institution if you find a better option. With that said, make sure to do this only after addressing the issues that led to rejection.
- Seek the advice of a financial advisor: If you are unsure about the reasons for rejection or how to improve your profile to clear the eligibility requirements, you can always seek the advice of a financial advisor who can guide you on the steps to take.
It’s worth noting that multiple rejections of loan applications can bring down your credit score. Thus, after a rejection, you should take steps to improve your credit score, income, and other aspects and wait for a while before applying again.
Got a question?
Our Articles
Best Home Loans in UAE 2026 – Ultimate Guide for
Best Home Loans in UAE 2026 The UAE property market...
Read More
Create A WordPress Multi Step Form
Tomfoolery crikey bits and bobs brilliant bamboozled down the pub...
Read More
How to Get a Dubai Mortgage as an Expat 2026
How to Get a Dubai Mortgage as an Expat 2026...
Read MoreOur Advisors Are Ready To Help You
Our experts are available to guide you toward the best insurance choices.
