Which Banks in the UAE Give the Best Rates for Mortgages?

You need to be careful when you choose a bank for your mortgage loan. This is a long-term relationship, so you need a bank that caters to your requirements. Most people choose to get the loan from the bank that they use for other financial dealings. While there are benefits to this, it is advisable to look at the other banks as well in terms of mortgage rates.

Additionally, it’s important to compare interest rates, loan terms, and customer service quality across various real estate lenders. Different banks and mortgage providers may offer special promotions or reduced rates that could significantly lower the total cost of your real estate investment. When exploring your options, make sure to understand the different types of mortgage products available, such as fixed-rate and adjustable-rate mortgages, and how they align with your long-term financial goals.

It’s also a good idea to calculate your mortgage payment in advance, so you know what you can comfortably afford, factoring in potential changes in interest rates or property taxes. Beyond rates, consider the overall experience a lender provides. A bank that offers a streamlined application process, quick approvals, and responsive customer service can make a huge difference in your real estate journey.

Best Banks in the UAE for Mortgages

Owning a home in the UAE is a dream for many expats. The real estate market is flush with choice properties that fit any budget and exceed all expectations. According to the UAE Mortgage Cap law, properties that are under five million need a down payment of 20%. Properties above this amount need a down payment of 30%.

This means that the rest of the property value comes from the mortgage loan. Banks in the UAE all offer competitive mortgage rates. Some of the best banks you should consider are:

Mashreq Bank

One of the oldest and leading financial institutions in the UAE, Mashreq bank offers several niche mortgage plans.

• Available for Expats, Emiratis and Non-Residents
• Can borrow up to Dhs. 10 million
• Mortgage rates start from 3.99%
• Maximum repayment period is 25 years
• Loan value for expats is 80%, Emiratis is 85% and non-residents is 50%
• Minimum salary is Dhs. 15,000 for salaried individuals

First Abu Dhabi Bank (FAB)

One of the largest banks in the UAE, FAB has mortgage packages that are diverse and often exclusive to the region.

• Available for Expats, Emiratis and Non-Residents
• Can borrow up to Dhs. 20 million
• Mortgage rates start from 2.49%
• Maximum repayment period is 25 years
• First time buyers get up to 85% financing
• Minimum salary is Dhs. 15,000 for salaried individuals
• Minimum income is Dhs. 25,000 for self-employed individuals

Emirates NBD

The Dubai government owned entity is one of the largest banking groups in the Middle East. The bank has several mortgage plans.

• Available for Expats, Emiratis and Non-Residents
• Can borrow up to Dhs. 15 million
• Mortgage rates start from 3.29%
• Maximum repayment period is 25 years
• Loan value for expats is 80%, Emiratis is 85% and non-residents is 50%
• Minimum salary is Dhs. 15,000 for salaried individuals

RAK Bank

One of the oldest and dynamic banks in the region, the bank has several plans for mortgages.

• Available for Expats, Emiratis and Non-Residents
• Can borrow up to Dhs. 13 million for salaried individuals and Dhs. 20 million for self-employed individuals
• Mortgage rates start from 2.84 %
• Maximum repayment period is 25 years
• Minimum salary is Dhs. 15,000 for salaried individuals

HSBC

The world’s largest banking and financial services, this UK bank offers mortgage plans depending on your property value.

• Available for Expats, Emiratis and Non-Residents
• Can borrow up to Dhs. 1 million
• Offers both fixed-rate and 3-month EIBOR based variable rate
• Maximum repayment period is 20 to 25 years
• Loan value is 60 to 80% of the property purchase value
• Minimum salary is Dhs. 15,000 for salaried individuals
• Special considerations for HSBC Premier customers

Conclusion

Property buyers have tons of options. Banks are offering dedicated packages catering to the demands of the individuals. Many banks have also formed collaborations with real estate companies, to make the mortgage process easy.