At present, UAE is said to be one of the biggest property markets in the world. There has been a rapid growth in the price of real estate, with stunning architectures, use of exceptional designs and an increase in population as there are large number of expats relocating to the Emirates every day.
One of the challenges faced by property investors is to get a good home loan in UAE. In most cases, people end up paying more fees and a higher rate of interest as they do not have time to negotiate or patiently wait for a better deal as they feel they may lose out on the property. Hence, it is important to find the best mortgage first and then look out for a property within the budget. In that way you end up with the best possible interest rate in the market. This article puts together best home loans in the UAE offered by different banks at a low rate of interest.
Below are the best home loans in UAE (as of August 2015):
- NBAD Mortgage Loan (New Home Loans): National Bank of Abu Dhabi offers a rate of interest starting from 2.94% that is fixed for 12 months. After 12 months the variable rate is applicable. The bank also offers maximum LTV of 80% for UAE Nationals and 75% for Expats. If you are an Elite Gold Card holder, FREE life & property insurance is given for the 1st year.
- RAKBANK Mortgage Loan (New Home Loans): RAKBANK offers a low interest rate of 2.99%. The monthly salary needed for this loan is AED 15,000. Finance is available for off-plan houses as well as ready projects with Title Deeds.
- UAB Home Finance (New Home Loans): United Arab bank offers an interest rate as low as 2.99%. The monthly salary required is AED 15,000 for UAE Nationals, AED 20,000 for Expats, and AED 50,000 for self-employed. The bank also has special offers on Early Settlement fee and processing fee. Once you transfer your existing Home Finance, you get your loan processing fee waived off.
- HSBC Home Loans (New Home Loans): HSBC offers an interest rate of 3.24%. Minimum monthly salary required for this loan is AED 15,000. The bank offers 80% finance for UAE Nationals and 75% finance for Expats. No processing/valuation fee for buyout.
- CBI Home Loan (New Home Loans): Commercial Bank International offers an interest rate starting from 3.24% p.a. with no processing or valuation fee.
- You can also apply for an equity release or a top up on your home loan with HSBC and get extra funds towards home improvements and furnishing. The monthly salary required is AED 15,000. This loan is only applicable for ready residential properties.