Commercial Bank International Home Loan for Emiratis and Expats
Commercial Bank International (Listed - ADX:CBI) has become a major player in the Emirates banking sector after tying up with Qatar National Bank (QNB). Commercial Bank International provides home loans for completed residential projects, which are entitled for mortgage and land registration throughout the Emirates. It provides loans to UAE nationals and expats. It is in the process of expansion with new branches opening in across the Emirates.
You’re probably eligible for CBI UAE Home Loan if you are
Salaried / Self-employed
with regular income
Earn more than the minimum income required
Your CBI UAE Home Loan amount eligibility is based on these factors
EMIs of other loans lower your eligibility
Increase your eligible CBI UAE 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 CBI UAE Home Loan
- 1. Valid passport for UAE Nationals.
- 2. Valid passport and valid UAE residence visa for Expatriates.
- 3. Valid Emirates ID.
- 4. Salary Transfer Letter (For Salary Transfer Loan’ Applications)
- 5. Last six months bank statements.
CBI UAE Home Loan Interest RatesUpdated on 27 May 2017
|Interest Rate (Monthly reducing balance)||2.99%|
|Loan Tenure||25 Years|
|Loan Application Fee||AED 1,000|
|Processing Fee||1% of loan amount – 0% for buyout cases|
|Property Valuation Fee||AED 2,500|
|Life Insurance Fee||0.033% p.m. (subject to change for loan amounts higher than AED 2 Million)|
|Property & Content Insurance||Free (for life of the loan)|
|Early Settlement Fee||1% or AED 10,000 whichever is lower (1% during the introductory rate period)|
|Partial Settlement Fee||
Commercial Bank International Home Loans: Benefits
- Early settlement and partial settlement at low rates.
- Available to both nationals and expats.
- Long repayment duration ranging up to 25 years.
- Low salary ceiling.
- Low repayment rates.
- Free valuation and insurance of the property.
- Credit card with lifetime validity and no fee.
Commercial Bank International Home Loans: Features
The standard application fee for these home loans is AED 1,000. A 1% processing fee is charged, which may be financed. There is no fee for property valuation in case of buyouts, while a fee of AED 2,500 is charged for other cases. Charges amounting to 0.4% p.a. has to be paid towards life insurance. There is no fee for Property and Content Insurance.
CBI provides variable rates for early settlement: 2% - fixed rate duration; 1% - variable rate duration; no additional rates after 5 years.
In case of partial settlements, the bank allows free settlement of 20% of the outstanding amount every 6 months (once the fixed period has ended). Partial settlements are not applicable when still in fixed payment period.
There are four major home loan products offered by Commercial Bank International:
(Expats) 1-year Fixed Rate:
This scheme provides expatriates with home loans at 4.25% interest rate. The minimum salary of an individual seeking this loan should not be below AED 15,000. The maximum permissible home loan amount under this scheme is AED 5,000,000, of which 25% has to be paid as down payment by the customer.
(Nationals) 1-year Fixed Rate:
This is similar to the above scheme, except, the down payment amount is lower at 20% of the overall loan amount.
(Expats and Nationals) 2-year Fixed Rate:
The interest rate in this case is 4.45%. Loans can be repaid over a period of 25 years. Similar to the schemes described above, the 2- year, Fixed Rate plan also has an upper ceiling of AED 5,000,000 and a 25% down payment requirement for expats. The down payment is lower for nationals at 20%.
- Can I stop making repayments for a short period of time?
- What are interest-only loans?
- What is pre-approval on a home loan?
- Should I be an existing account holder with CBI before I apply for a home loan?
Yes, customers who have taken out home loans on a variable rate of interest can opt for repayment holidays which basically allow you to stop making payments for a set period of time (usually between three and 12 months).However, it is important to make additional payments on your home loan to qualify for a repayment holiday. Make sure you consult the bank’s home loan experts to get a better idea about the same.
These are loans that make your monthly payments more flexible in case a completely amortising loan payment is not permitted by your cash flow. You will have to make a minimum payment each month, and this payment will only cover the interest part of your mortgage, resulting in a decrease of the principal should you make payments higher than the interest. These loans provide you with the flexibility to select the amount of money you will be able to repay each month, thereby allowing you to pay little in times of financial trouble, or more during months when your cash flow is high.
Before the bank lends you the money to purchase a home, re-approval is done to help you ascertain whether or not you are eligible for a mortgage prior to deciding on the property you wish to purchase.
Customers are not required to be existing account holders with CBI when applying for a home loan. However, opening a current account with the bank at the time of taking out the loan is mandatory.
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.