DIB Home Loan and Mortgages in the UAE
Dubai Islamic Home Finance was successful in Pakistan and now they are offering their home service overseas that is mainly for the UAE Nationals. Dubai Islamic Home Finance helps you get your hands on the house of your dreams. It also has the Musharaka cum Ijara model, where the bank enter into a partnership with you and helps you not only to own a home conveniently but also adhering to the Shariah compliancy. You can buy, renovate or lets you switch from the other banks’ home finance.
You’re probably eligible for Dubai Islamic Bank Home Loan if you are
At least 21 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum income required
Your Dubai Islamic Bank Home Loan amount eligibility is based on these factors
80% of property value
EMIs of other loans lower your eligibility
Increase your eligible Dubai Islamic Bank 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
Documentation needed to apply for Dubai Islamic Bank Home Loan
- 1. 6-months bank statement
- 2. Valid passport/Khulasat al Khaid Copy/Valid visa.
- 3. Relevant property papers.
- 4. Evaluation from approved evaluators
- 5. Copy of Trade License (Self-employed)
- 6. Audited financial statements (Self-employed)
Dubai Islamic Bank Home Loan Interest RatesUpdated on 28 Oct 2016
|Interest Rate (Monthly reducing balance)||3.99%|
|Processing Fees||No info|
|Loan Tenure||25 Years|
There are three product variants:
- Purchasing a home.
- Home renovation.
- Balance transfer from the other bank, where Dubai Islamic Bank purchases the undivided share of your property from the other bank.
DIB Home Loan: Eligibility
Eligibility criteria for availing the home finance from Dubai Islamic Bank is as follows:
- Pakistani National:
- You need to be 25 to 65 years of age.
- Monthly income must be a minimum of Rs.40,000/-
- Both self-employed and salaried individuals can avail the home loan service from Dubai Islamic Bank.
- The age requirement is a minimum of 25 and a maximum of 65 years.
- The individual must be making a minimum of AED 25,000 monthly.
- Both salaried and self-employed can apply for the loan.
The property needs to be in Karachi, Lahore, Rawalpindi and Faisalabad of Pakistan and its value must be a minimum of Rs.2,000,000/-.
DIB Home Loan: Features
The features of Dubai Islamic Home Finance home loan service is as follows:
- It has 100% Shariah compliancy.
- Financing starts from Rs.0.5 million and goes up to Rs.50 million.
- The processing time is very fast.
- Monthly payment amounts are very affordable.
- The bank finances up to 70% of the property value.
- If it is applicable, then Finance Enhancement Option can be chosen.
- On the applicable terms, the entire or the partial loan can be settled early.
- Tenure can be rescheduled under applicable terms.
- The price is linked to the Karachi Interbank Offered rate, which revises every 6 to 12 months based on the chosen renewal plan.
- The applicable profit rate is the relevant Karachi Interbank Offered rate along with a certain predefined margin.
The monthly payment can be made through the following channels as per the customer’s convenience:
- Over the counter at any of the DIBPL branch through cash or cheque to a dedicated account.
- If the customer already has an account at the DIBPL, then he can instruct the bank to make the payment to the bank from the account maintained by the customer.
- Customers can also make use of the Dubai Islamic Internet Banking Facility, where they can internally transfer the amount from their personal account to the dedicated account.
With the Dubai Islamic Bank’s Home finance service, one can now get their dream house at Karachi, Lahore, Rawalpindi and Faisalabad of Pakistan. The UAE Nationals who always dreamt of owning a house in Pakistan can now apply for loans through Dubai Islamic Bank. The variety of the payment options provided makes it a less of a hassle for the customers. The added benefit to look for here is that the financing starts from AED 0.5 million and goes up to AED 50 million.
Dubai Islamic is one of the most trusted and reputed banks in the UAE and has won several accolades to cement its position as one of the industry leaders. The bank has a variety of products and services for all kinds of customers. The bank offers following five options from which customers may avail home loans:
- Al Islami Home Finance for UAE Nationals
- Al Islami Home Finance for Expatriates
- Non-Resident Programme
- Mohammad Bin Rashid Housing Establishment
UAE nationals may seek financial help from the bank to build or purchase a residential property. There are five different options for UAE nationals when it comes to applying for home finance.
- Murabaha: Supply and Installation Murabaha allows you to purchase a residential property provided you agree to make monthly instalment payments. Buy and Sell Murabaha, on the other hand, is an option wherein the bank will buy a property and sell it to the customer at a predetermined profit, and fixed monthly instalments will have to be paid by the customer.
- Standard Ijarah: Ijarah is a lease contract through which the customer can take a property on lease from the bank and make rental payments for a pre-agreed financing period.
- Buyout Ijarah: The existing home loan of a customer from his / her present mortgage provider can be transferred to DIB and the monthly payments due will subsequently reduce.
- Equity Release: Under this option, the equity in a customer’s home can be used as collateral, which means that customers with properties that are fully paid up and not mortgaged can cash out the equity from their home.
- Commercial Ijarah: Residential units in bulk, retail or office space for commercial use can be financed through Commercial Ijarah.
- Standard Ijarah: This is a lease contract through which the customer can take a property on lease from the bank and will have to pay rent for a predetermined financing period in return.
- Buyout Ijarah: Customers can transfer their existing home loan from their present mortgage provider and reduce the monthly payments in addition to availing attractive buyout offers.
- Equity Release: The customer’s home can be used as collateral in this case, meaning that customers who have properties that are fully paid up and not mortgaged can cash out the equity from their home.
- Commercial Ijarah: Residential units, retail and office space for commercial purposes can be financed through Commercial Ijarah.
Non-residents of the UAE can apply for home loans through the Non-Resident Programme and avail attractive profit rates, high finance amount, and competitive repayment tenors.
Dubai Islamic Bank has partnered with Mohammad Bin Rashid Housing Establishment so that customers of the bank can finance homes through Al Yusr – a sharia-compliant home finance programme that makes it easier for individuals to now get a hold of their dream homes at affordable monthly instalments.
DIB Home Finance Special Offers
One of the best deals made available by Dubai Islamic Bank includes special offers that make it fairly easy for customers to purchase their dream homes.
Dubai Islamic Bank claims that its home finance special offer is one of the best home loan packages in the UAE market. The features of the plan are as follows:
- Finance is available for both residential and commercial properties.
- You get up to 85% finance for your property.
- DIB has the largest network of approved property developers.
- UAE Nationals can get comprehensive home loan products – this includes a partnership with Mohammed Bin Rashid Housing Est.
- Applying for Home Finance Special Offer by DIB also gives you special offers on credit cards, vehicle and personal finance.
The profit rates for the DIB Home Finance Special Offers start from 3.24% annually. The profit rates are dependent on the Emirates Interbank Offered Rate (EIBOR) all through the finance tenure. Additionally, there are no hidden charges, and the processing fees are low.
- How is my application for a home loan processed?
- Based on what factors is my application for a home loan evaluated?
- How do I make my EMI payments?
- Is it important to take out insurance?
- What is processing fee?
When you apply for a home loan, a Relationship Officer from the bank will get in touch with you and arrange for a meeting at your convenience and at your desired location to begin the formalities. Customers also have the choice of visiting the bank or any of its branches and meeting the concerned authorities to get the application process underway.
There are five main factors that the bank uses to ascertain whether or not an applicant qualifies for a home loan. They include the customer’s income stream, their stability and employment history, their ability to make repayments on time, the value of the home being bought, and the customer’s assets to determine whether or not he/she can meet their down payment.
Customers must pay their EMIs by opening a current account with the bank. The EMI payments will be recovered from the account.
Yes, it is essential to take out both property and life insurance before the loan is disbursed to you.
Processing fees are basically the fees charged by the financial institution to cover some of the processing expenses related to the loan. It is generally a small portion of the amount a customer wishes to borrow.
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 Dubai Islamic Bank Home Loans
Renaissance growth slows down. Maintains a bright spot in EMEA. DIB remains the top pick.
Renaissance has trimmed down its loan growth estimates for 2016-2017 from 10.7 % to a mere 7.1% as a result of tighter liquidity. The adjustment to EPS forecasts and TPs and they are maintaining a positive vibe going into potential fed hikes. Median CAR stands at 18.7% and median NPL ratio dropped down to 2.7% from a solid 3% in financial year 2014.
Deposit growth didn’t keep pace with only Dubai Islamic Bank increasing deposits QoQ. Lower prices of oil and pressure to comply with Basel 3 has really affected Systemic Liquidity. Dubai Islamic Bank remains to be the favourite bank given its overall growth and better margin dynamics. Compared to EMEA markets, UAE banks stand out for various reasons such as balance sheet visibility and high capital levels.
14th August 2015