The lowest rate on Home Loans in the UAE

New Home Loans – At the onset, it is important to understand that the loan offer with the lowest interest or profit rate is not necessarily the best one. The very low rates advertised by most banks are usually fixed for a very short period like 1 or 2 years. Most people who need a home loan will go for loan tenures upwards of 10-15 years, so it isn’t wise to base your decision solely on such a short-lived interest rate.

Before you decide which bank to sign up with for your home loan, make sure to compare the variable rates which will apply for majority of the loan tenure and take into account the various fees & charges like processing & valuation fees, rescheduling fees and loan closure fees (on balance transfer). 

MoneyCamel brings to you some of the latest home loan offers in the market: 

  • ADIB Home Finance – There are two options available to both Expats and UAE Nationals. The first is a Fixed rate option – 2.99% fixed for 2 years, variable thereafter (minimum 4.49%) and the other is a Variable rate option – Floating rate EIBOR (3m) + Bank margin (minimum 3.75%). See the link above for more details on the offer.
  • UAB Home Finance– You can avail the Step-up plan fixed for 3 years with 3.29% for 1st year, 3.79% for 2nd year and 4.29% for 3rd year or the Fixed rate offer of 3.99% for 1 year/ 4.49% fixed for 2 years / 4.99% fixed for 3 years. You also get a Free Infinite credit card with Home Finance & with salary transfer for home loan, you get up to 100,000 UAB Reward points (valid till 31st March 2015).
  • Noor Bank Home Finance – Noor Bank is also offering two attractive profit rate options - 3.99% (fixed for 2 years) and 4.49% (fixed for 3 years). There is also an “Avail now, pay later” promotion being run by the bank, wherein customers get a 3 month payment holiday. See Noor Bank’s home finance for Expats & home finance for UAE Nationals for details.
  • Mashreq Home Loan – The bank has reduced home loan rates further to offer 3.75% (fixed for 1st year), 3.99% (fixed for 2nd year) and variable EIBOR related rate thereafter. Loans are available to both Expats and UAE Nationals up to AED 15 Million for both salaried and self-employed individuals.
  • Emirates NBD Home Loan – For salary transfer customers, interest rates for Home Loans start at 3.99% (fixed for 1 year), 4.24% (fixed for 2 years), 4.49% (fixed for 3 years), 4.99% (fixed for 5 years) and the rate is variable thereafter (starting from 5%). Non-salary transfer customers pay an additional 0.25% over the fixed rates mentioned and variable rate will start at 5.5% after 5 years. See the bank’s home loan for Expats & home loan for UAE Nationals for more details.
  • RakBank Mortgage Loan – RakBank has also started offering home loans at 2.99% (fixed for 1 year). From the 2nd year and throughout the loan tenure, a variable rate applies (3% bank margin + 12 month EIBOR).

Refinance/Balance Transfer – When you refinance your home, you’re shifting from your current mortgage to a different one to take advantage of a lower interest rate. Some banks also use the term Buy Out for this.

Amongst some of the latest and most lucrative refinance deals in the market is ADIB Home Refinance with a profit rate of 2.99% (fixed for 2 years & variable rate thereafter).

Recently, HSBC announced a 3.99% interest rate for buy out for home loan customers. The bank will also waive off any processing or valuation fee. The offer is valid till 30th June 2015. Check out HSBC Home Loans for more information.

United Arab Bank’s latest offer can get your processing fee waived when you transfer your existing Home Finance to UAB helps guide you through the various home loan options available in the UAE. You can leverage the user-friendly website to compare different banks’ offerings and find a home loan that ticks all the right boxes for you.