Own You Dream House with Abu Dhabi Commercial Bank Home Loan
Now owning the house of your dreams has become easier with Abu Dhabi Commercial Bank providing various mortgage services. ADCB Home Loans are offered at attractive interest rates to UAE nationals as well as expatriates. The mortgage loans thus provided are categorised as per the privilege level the customer and the related fees associated with the loan also vary as per the category a customer falls into.
With this service from this renowned bank you can avoid taking any risk as ADCB has professional consultants that guide you through the whole process. They are open to Islamic as well as the Conventional type of financing.
You’re probably eligible for ADCB Home Loan if you are
Salaried / Self-employed
with regular income
Earn more than the minimum income required
Your ADCB Home Loan amount eligibility is based on these factors
Maximum Loan to Property Value – 75%
EMIs of other loans lower your eligibility
Increase your eligible ADCB Home Loan amount by these steps
Make your spouse a co-applicant, and her income will add to your eligibility
Choose longer tenure loan up to 25 years
Alternatively add your parents
ADIB Home Loan Interest RatesUpdated on 25 Oct 2016
|Processing Fees||No Info|
|Loan Tenure||25 Years|
ADCB Mortgages: Features & Benefits
- Long repayment periods which can go as high as 25 years; the best you can get in UAE. This means you pay less every month, while affording a bigger house.
- High loan amounts; the bank provides up to 80% of the property value as mortgage.
- Affordable loan instalments at varying interest rates which can be opted for as per your requirements. The monthly instalments can be as low as AED 5,275 i.e. when the EMI is 3.99% per Million AED.
- No prepayment fees; if you plan on an early settlement, the bank doesn’t charge you any fee.
- With ADCB you get awarded 200 TouchPoints for every AED 1,000 of the loan amount. These TouchPoints are redeemable at merchant outlets or for shopping vouchers or airline tickets.
The various types of Mortgage services provided by ADCB are explained below:
- Mortgage Refinance Services With this service, the borrower can borrow against the increased value of the property with an intention to invest in other properties or buy other things. The benefits here are as follows:
- The mortgage covers up to 70% of the property value.
- Monthly instalments can be as low as AED 7,718 (when the interest rate is 8%).
- You can extend the repayment period up to 25 years.
- If you want to settle the loan early, you can do so after 5 years for a 0% settlement fee.
- Personalized service is provided along with a low processing cost.
- You can withdraw money for any purpose when the need arises.
- Interest is charged only when you make withdrawals
- This account can be operated as a normal current account.
- You can avail up to 65% finance against your completed residential property.
- The tenure goes on for 15 years.
- You can invest in properties in England or Wales for self-occupation or or investment.
- The property can be bought by re-mortgaging your current property to obtain lower interest rate.
- This is available to salaried and self-employed UAE nationals and expats.
- Avail the best repayment period of 25 years.
- Mortgage covers up to 70% of the property value.
- Interest rates start from 3.99% p.a.
- Each year you can pay up to 10% off your mortgage loan.
Apart from these there are two special Mortgages available to the Excellency Clients, both UAE nationals and expats. They are architected to suit individual unique needs.
- Loan values can be as high as AED 15 million.
- Approvals are quick.
- Interest rates are competitive and flexible.
- Dedicated relationship managers provide personalised service.
ADCB housing finance solutions are tailor-made services to suit a variety of requirements. An early settlement fee of 0% is an added benefit. It also enables purchase of properties in England and Wales. You can enjoy the comforts of your new house at low interest rates. And there is no rush to pay the loan off as you get loan periods up to 25 years.
Fees and Charges on ADCB Home Loans
The fees and charges as mentioned in the schedule of charges provided by ADCB are as follows –
- Processing Fees – Charged by the bank for the document processing related to the home loan application, the charges are different for different levels of customers. For an Aspire customer the processing fees are 1% of the loan amount, for a Privilege Club customer it is 0.75% of the loan amount and for an Excellency customer the fees are capped at 50000 dirhams being 0.50% of the loan amount
- Property Insurance – If in case a property is offered as security in the loan process, 0.40% per annum is the charge levied on the property value
- Life Insurance – Life insurance on the customer is levied at a rate of 0.275% per month on the outstanding loan amount
- Life Insurance Assignment Fee – The fees pertaining to getting a life insurance scheme activated on a home loan customer is fixed as a one-time fee of 5000 dirhams
- Valuation Fee – The fees charged for evaluation of property and credit rating of the customer is fixed at 3000 dirhams
- Early Settlement Fees – If in case the availed home loan is being settled off before the last due date before the end of the fixed rate term, 3% of the outstanding loan amount will be charged as fees. In case the same is done after the end of the fixed rate term, the settlement fees will be the lower of 1% of the loan outstanding or 10000 dirhams
- Switching Fees – If in case a loan is being transferred, 1% of the outstanding amount of loan might be charged as fees
- Mortgage on Liability Letter – An amount of 100 dirhams is charged for all customers irrespective of the level of banking he/she is associated with
- Arrears Collection Fees – If someone has defaulted on any payment, the arrears collection process will be charged at 1000 dirhams
- Loan Account Statement – Query for statement of the loan account can be processed for free by the bank
The home loan application from ADCB is a seven page document that needs to be filled up by the interest applicant in order to initiate the loan application process. The details of the document are mentioned in the following points –
- Personal Details – This deals with the name, age and gender along with the Emirates ID number of the applicant and/or co-applicant. If in case one is a UAE resident, one has to furnish the UAE residence visa number and the number of years one has spent in the UAE
- Contact Details – This section deals with the residence and official addresses of the applicant and should include one residential address in the UAE
- Employment/Business Details – This will include the professional details of the applicant and co-applicant including the nature of business and employment type along with the tenure of service. If in case one is self-employed, names of partners and directors need to be furnished, along with the employee strength, license and registration and the like
- Correspondence – This section would typically be the same as the contact details but in case one wishes to receive correspondence at a different address, the same can be mentioned here
- Non-UAE Residents – There is another section of the form that deals with personal and professional details of applicant and co-applicant if they are not UAE nationals
- Insurance - The Insurance section deals with if the applicant wishes to transfer the benefit of his/her existing life insurance policy to ADCB for the time frame of the loan
- Financial Details - Financial Asset Details, Loan Details, Credit Card Details, Personal Bank Account Details and Loan Requirement & Repayment are the other details that follow in the application form
- Credit Card - If one is interested, they can even apply for a credit card from ADCB by filling in the section that is provided for a credit card application
- Last but not the least, there is a page of the application form that can only be filled by the bank and will require the customer’s signature
The mortgage loan agreement book from ADCB deals with the loan agreement terms between ADCB and the customer, has a section on the Special Power of Attorney, lists out Schedule 1 and 2, followed by Exhibit B and concludes with a Standing Order.
The Customer’s name is mentioned right at the start of the document.
The following sections are present in the Loan Agreement portion of the document –
- The Loan amount that is to be given to the customer from the bank in accordance with the rules and regulations mentioned in Schedule 2.
- Disbursement undertaking by ADCB detailing that if within 30 days the customer fails to comply with all the rules and regulations or conditions set forth by the bank, the agreement will cease to be valid.
- Repayment terms that detail how the loan is to be repaid in terms of the principal, interest and fees and charges in a monthly instalment mode.
- Conditions Precedent relate what all needs to be done on behalf of the customer within 30 days of the loan facility being approved so that the loan can be disbursed effectively.
- Prepayment clauses state what amount of the loan is allowed to be prepaid and when. Seven days of notice are required before a prepayment is done and that will include extra charges as mentioned by the bank.
- Representations deal with all the obligations that the borrower will have towards the bank till the loan facility is active and in force.
- Covenants are a series of undertakings that the customer agrees to uphold in order to be eligible for a loan.
- Events of Default relate the conditions in which a customer’s actions might cause a breach of the home loan agreement.
- Right to Set-Off basically allows ADCB to act on behalf of the borrower’s other accounts in order to successfully repay the loan.
- Indemnity section is an undertaking by the customer that he/she will not be holding the bank responsible and accountable in case any events of default take place.
- Notices pertaining to the home loan agreement will be delivered personally by hand or through conventional means that can reach the customer.
- A Binding agreement is formed upon signing the contract and it extends to the successors of both parties.
- Assignment section details that the customer can’t assign any of the borrower’s right to anyone else without the prior written consent of the bank.
- The next sections of Amendment, Waiver, Entire Agreement, Partial Prohibition, Third Party Rights, Bank’s Records and Governing Law and Jurisdiction relate the constraints on the borrower while the loan facility is in force.
- 15. The last section in the home loan agreement form needs the signature of the customer as well as an authorised signature from Abu Dhabi Commercial Bank.
The Special Power of Attorney
This section is basically an undertaking signed by the customer to follow all the rules and regulations mentioned in the home loan agreement to the fullest and also to be answerable to the law for situations that might include the loan facility from ADCB.
This is a simple note addressed to Abu Dhabi Commercial Bank mentioning the amount of the loan and the amount of money that the borrower needs to pay back to the bank along with the interest rate that has been set for that particular loan.
This deals with the details of the property, the address where it is located, the dimensions of the same, the seller or developer of the property and the details of the purchase agreement along with the price of the property.
This deals with the technical details of the loan, with the interest rates (fixed and variable) as per the EIBOR standards currently or just the variable rate of interest as per the choice of the customer.
This is an undertaking by the customer(s) to allow the disposition of the financed property in case any breach of the terms and conditions are done on behalf of the customer.
At the very end of the Mortgage Loan Agreement book, there are a set of five to six sheets of Standing Order requests that the customer would need to sign in order to change the frequency of repayment done for clearing the loan. This is addressed to the manager of the Abu Dhabi Commercial Bank.
The overdraft facility allows the customer to get an overdraft against a security charge over the concerned property in favour of the bank.
The form begins with the Customer’s name at the top.
The second page mentions the branch office of Abu Dhabi Commercial Bank operating under the head office of the bank wherein the agreement has been formed and defines who the customer is. Other definitions include those of the agreement, assignment of the sale and purchase agreement, current account, default interest that is payable in the event of default on the part of the customer, drop line amount, events of default, facility amount, interest rates, mortgage, overdraft facility, power of attorney, property and the like.
The section would require the signatures of the applicant and co-applicant and from the authorised signatory of the bank.
Schedule 3 deals with the assignment of the sale and purchase agreement between Abu Dhabi Commercial Bank and the customer(s) and details about the indemnification and liability of the customer, the assignors and general terms and conditions. This would also require the signatures of ADCB authorised signatory and the customer(s).
There’s a section on Special Power of Attorney too which is an undertaking signed by the customer to follow all the rules and regulations mentioned in the mortgage overdraft facility agreement to the fullest and also to be answerable to the law for situations that might include the overdraft facility from ADCB.
A section detailing the overdraft amount, the interest rate, the default interest, current account number, branch held, tenure of the overdraft and annual drop line amount, being agreed by the customer through a dated signature.
Schedule 2 deals with the details of the property on which the overdraft has been assigned and it includes the address, date of purchase and construction and other similar details.
The developer of the property also provides a letter pertaining to the property that is being offered as a security.
Apart from Housing Loans, ADCB also provides the following products:
- Is it better to choose adjustable rate of interest or a fixed rate of interest?
- Should I have an account with ADCB before I apply for a home loan?
- What are processing fees for ADCB Mortgages?
- Should I transfer my salary to ADCB if I want to take a loan from the bank?
The main difference between home loans that can be taken out on a fixed rate of interest and those that are secured on an adjustable rate is that the rates remain the same in case of fixed and vary in case of adjustable. Since loans with adjustable rates have their rates linked to an index, they are subject to change at any given point in time. It is best to consider all factors that may potentially affect your final choice, like your budget and whether or not it will be affected in case interest rates were to increase, and the duration you wish you reside in your home. If you are not comfortable with varying payments then a fixed-rate loan may be the best option for you.
You do not necessarily need to be an existing account holder with ADCB when applying for a mortgage. However, the bank requires you to open a current account in case you decide to take out a home loan regardless of whether or not you hold a regular savings account with the bank.
Processing fees are the fees charged by the bank to cover the expenses to process your loan. It is generally a small portion of the amount you will be borrowing from the bank.
It is not compulsory for customers to use an ADCB account for their salary but customers who do so will be eligible for additional benefits like reduced interest rates and better terms.
The main factor while taking a home loan is the interest rate. Home loans are easily available from various banks across the UAE and the interest rate that is applicable on these loans depends on the bank that offers that loan. It is the rate of interest on the Home Loan that affects the EMI and hence your monthly budget throughout the tenure of the loan.
Buying a property for the first time in your life and that too on mortgage? It is a huge expense and a massive commitment to get involved with. Hence there are certain things you will need to know about it before you can proceed.
Ever felt like changing your lender? There are lots of things that make refinancing a mortgage a good idea and the chief among them is that if can help ease the pressure of monthly payments. You can also walk away with lots of benefits, depending on the bank.
Did you know that you can avail finance by tapping into the positive equity of your property? Instead of letting your property to sit idle, you may use it to avail finances. Many banks provide cash advances against properties for a lower rate of interest. Using properties as a collateral will help get cash advances of a higher amount at a very low rate.
Buy-to-let mortgages are best suited for the people who want to make an investment in the property with just the intention of letting out the property for rent. But since their purpose differs much from the regular mortgages, so does their other attributes. Hence it requires a well informed decision before opting for it.
Home Equity Loans provide the facility for homeowners to borrow funds by putting up the equity in their homes as leverage. Home Equity Loans or Second Mortgages are among the easiest sources of cash a customer could wish for. And these being tax deductible, offer an additional benefit.
Home Refinance Loans provide an option to the customers to opt for an additional finance on the existing property so as to get a better term and rate of interest than offered by their current mortgage. The second mortgage can be taken out once the first has been repaid.
Subprime Mortgages provides mortgages for the acquisition of residential real estate, sanctioned to customers with a bad credit history. Hence the risk of default on these loans is significantly higher and so are the fees to make up for the extra risk.
Reverse Mortgages are a special kind of mortgages targeted only at the customers who have crossed the age of 62 years. The banks or the lenders provide the money against the equity in the existing property and also do provide for the payments to be made either monthly or occasionally in lump sums.
Interest only Mortgage in the UAE provide the facility to the customer to pay off the interest on the mortgage before the principal amount. Interest only mortgages come with a fixed term and have so many benefits apart from low initial payments and are suggested for the customers who intend to sell the property after the end of the mortgage.
Fixed Rate Mortgages offer finance at fixed rates throughout the loan tenor and hence the monthly payments due on fixed-rate mortgages also remain the same. They are the exact opposite of adjustable rate mortgages in which the monthly payments may be low during the initial stages of the mortgage but could potentially increase to almost double the initial interest rates which will increase the monthly payments.
News about ADCB Home Loans
Capital Intelligence assigns ADCB credit rating of A-
Capital Intelligence has confirmed a new credit rating of A- for the Abu Dhabi Commercial Bank as a result of an improvement in their loan-loss reserve coverage and the improvement in their asset quality. The rating for foreign currencies was maintained at A+ for long term and A1 for short term. The rating for support was maintained at 1. These ratings were provided because the CI determined that the bank had good management, strong financial fundamentals and was very likely to be supported by the government if the need arose. The bank is also maintaining a better Non Performing Loans ratio as compared to other banks and the bank’s profitability was also found to be good however the liquidity ratios were judged to be only acceptable and with the liquidity crunch in the GCC economies, projections of raising capital at good prices might be challenging.
05th October, 2015
A 2.3 Billion Dirham deal signed by developer Gulf Related and Abu Dhabi Commercial Bank
A deal to develop a mixed use retail development between, Abu Dhabi Commercial Bank and property developer Gulf Related has been signed for a whopping 2.3 Billion Dirham ($626.29 million). This project named Al Maryah Central is one of the largest of its kind for the developer, and is scheduled to be ready and open in March 2018, and will have a mall of 2.3 million square feet with brands like Macy’s the first outside USA and Bloomingdale's the first in Abu Dhabi.
29th September, 2015