Introduction to Commercial Bank of Dubai Home Loan
If you pay monthly rent for the place you are staying at, maybe it is time to pay every month to make it your own home. Owning a house is a relief as you are not restricted to anything and moreover you won’t hold back on making that space your own and defining in a way you want to.
Commercial Bank of Dubai gives you that opportunity. You can avail home loan from Commercial Bank of Dubai for a competitive interest rate without any hidden charges to worry about. Another important feature is that you can release cash from the bank against any of your fully paid property. Repayment of the loan’s tenure can go up to 25 years for the UAE Nationals and 20 years for the expats. Commercial Bank of Dubai offers loan amount as high as AED 15 million.
You’re probably eligible for CBD Home Loan if you are
21 years for both Emiratis & Expats
65 years for Emiratis & 60 years for Expats
Salaried / Self-employed
with regular income
Earn more than the minimum income required
Your CBD Home Loan amount eligibility is based on these factors
AED 20,000 for Salaried Individuals
AED 50,000 for Self-Employed Individuals
AED 15 Million
EMIs of other loans lower your eligibility
Increase your eligible CBD Home Loan amount by these steps
Make your spouse a co-applicant, and her income will add to your eligibility
Alternatively add your parents
Documentation needed to apply for CBD Home Loan
- 1. National ID or valid passport, residence visa and Emirates ID.
- 2. Original 6 months bank statement for new customers.
- 3. Salary Certificate.
CBD Home Loan Interest RatesUpdated on 26 Oct 2016
|Interest Rate (Monthly reducing balance)||3.99%|
|Processing Fees||1 % of loan amount, or a minimum of AED 5,000|
|Loan Tenure||25 Years|
CBD Home Loan: Requirements
The following documents are required to apply for the loan facility at Commercial Bank of Dubai:
- A valid passport or any National ID.
- Residence visa and the Emirates ID.
- If you are a new customer, then the original 6 months bank statement needs to be provided.
- The salary certificate.
CBD Home Loan: Eligibility Criteria
The criteria for selection for the home loan facility is:
- If you are an UAE National, then you need to be at least 21 years of age and when the loan matures you need to be within 65 years of age.
- If you an Expat, you need to be at least 21 years of age and when the loan matures you need to be within 60 years of age.
- An employed customer must be employed with an employer approved by Commercial Bank of Dubai.
- UAE National who is employed needs to have a minimum monthly income of AED 20,000.
- Employed expats must have a minimum monthly income of AED 25,000.
- The length of the service of the UAE National must be at least 2 years.
- The expats needs to have been employed for at least 3 years.
- Self – employed must have a monthly income of AED 50,000. The business needs to have been established for a minimum of 3 years and should be making profit for 2 years.
CBD Home Loan: Benefits
Additional to this you also can benefit from the mortgage offer provided by Commercial Bank of Dubai. The features are as follows:
- 1% of the loan award is rewarded back to the customer’s account.
- Can avail 1 million reward points.
- You get one year complimentary access at the Mina A’Salam Talise Fitness Club.
- Loan is approved in a day.
- You get the Visa Infinite Card free for life.
The campaign period for this offer is from March 1st till April 30th 2015.
The time is running short for availing the mortgage offer by Commercial Bank of Dubai. If you are tired of paying the monthly rent and you always think of owning a place you can call your own, turn to Commercial Bank of Dubai, the will make your dream come true. Real estate is the best investment you can make at any given time.
Fees and Charges for CBD Home Loan
Home Loan or Mortgage charges for the Commercial Bank of Dubai (CBD) are as below:
- Application fee: None
- Processing fee: 1 percent of the loan amount, or a minimum of AED 5,000
- Valuation fee: AED 3,000
- Property insurance: 0.0275 percent per year on property value or as charged by the insurance provider
- Life insurance: 0.0275 percent per month on outstanding loan or as charged by the insurance provider
- Penalty on late payments: 2.5 percent on the amount delayed, and an additional AED 500 for every delayed payment thereafter.
- Partial payment charges:
- By customer: 1 percent of the paid amount, or AED 10,000, whichever is lower
- From other bank: 1 percent of the paid amount, or AED 10,000, whichever is lower
- Foreclosure charges:
- By customer: 1 percent of the outstanding loan amount or AED 10,000, whichever is lower
- From other bank: 1 percent of the outstanding loan amount or AED 10,000, whichever is lower
- Cancellation of manager’s cheque: None
- Mortgage liability letter: AED 300
- Loan account statement: None
- No Objection Certificate to developer: AED 300
- Copy of documents: AED 100 per document each time a copy request is made
- Changes in documents or title: AED 2,000
- Loan rescheduling fee, if requested by borrower: AED 2,000
- What does the bank take into consideration before making its final lending decision?
- How is the interest rate on my mortgage calculated?
- Will my chances of securing a loan reduce if my credit score isn’t perfect?
- How are variable-rate loans different from fixed-rate loans?
The bank will consider a few factors when reviewing your application so that the terms and conditions of the loan are ideal for both parties. Factors such as the customer’s credit history, their debt-to-income ratio and the value of their property are some of the main ones that will be reviewed by the bank to determine the level of risk involved with granting you a loan.
The calculation of interest rates are dependent on a number of factors like the purpose of taking out the loan, the credit history of the customer, the amount of money a customer wishes to borrow, the value of the collateral and the customer’s ability to make repayments among others.
It is essential to maintain a high credit score as it helps you gain access to better options and more attractive interest rates. However, poor credit does not mean that you cannot secure a home loan. While credit rating is important, it is not the only factor considered by the bank before it confirms your eligibility. But with that being said, your credit history must display both the ability as well as the willingness to make repayments on time.
Loans that can be secured at a fixed rate of interest experience no change in interest rates during a set term of the loan. When the term ends, the rate may become variable again. On the other hand, variable-rate loans come with interest rates that either increase or decrease based on fluctuations in the property market.
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.