Finance House Home Loan
Finance house believes that investing in a home should be as easy in living in one. Finance House makes investing in a home easy, quick and simple. Finance House also offers a world of benefits that makes investment in UAE worthwhile.
You’re probably eligible for Finance House Home Loan if you are
At least 21 years old
Less than 60 years old
Salaried / Self-employed
with regular income
Earn more than the minimum income required
Your Finance House Home Loan amount eligibility is based on these factors
Loan capped is AED 2.5 Million
EMIs of other loans lower your eligibility
Increase your eligible Finance House 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 20 years
Alternatively add your parents
Documentation needed to apply for an Finance House Home Loan
- 1. Original passport & photocopy thereof (with valid UAE residence visa for expats)
- 2. Latest 6 months’ bank statements of account into which salary is transferred
- 3. Current dated salary certificate from employer addressed to Finance House
- 4. Original Sales Agreement with the developer
- 5. Proof of down payment made to developer
- 6. Post dated cheques for repayment and security cheque for Principal+Interest.
Finance House Home Loan Interest RatesUpdated on 19 Jan 2018
|Interest Rate (Monthly reducing balance)||10%|
|Processing Fees||1% of the loan amount|
|Guarantor Requirement||No guarantor required|
Features of Finance House Home Loan
The following are the features of Finance House Home Loan:
- Villas and Apartments located in Abu Dhabi are approved by Finance House.
- Minimum interest rate offered is 10% per annum.
- The cost percentage that will be financed by Finance House varies from developer to developer.
- The minimum financing amount is AED 200k.
- The maximum financing amount is AED 2.5 million.
- Maximum loan tenure is 20 years.
- You can start paying the EMI even before you occupy the property under ‘Interest only serving facility’.
- You have to provide 25 cheques at the time of signing up. The cheques will include repayment cheques, processing fee cheque and cheque for life insurance.
- There is no option for top-up loan.
- If property is in joint names, both will have to sign the borrowing documents.
- If you moving out of the country, you will have to repay the loan with your own funds or Finance House will sell the property and if there is a balance amount, it will be refunded to you.
- Interest has to be paid during the construction period and EMIs will have to be paid after delivery of the house or apartment.
- Loan approval will take 4 business days.
- Financing is available for first hand residential properties only.
Benefits of Finance House Home Loan
The unique advantages of taking of Finance House Home Loan are as follows:
- You get sound advice on property investments in UAE.
- Home Loan can be availed at competitive rates and terms.
- There will be complete transparency in dealing with finances.
- After sales services are prompt.
- Home Finance has cooperation agreement with major developers of Abu Dhabi and Dubai.
Finance House Home Loan: Eligibility Criteria
The projects that are approved by Finance House are Villas and Apartments of the reputed builders located in Dubai and Abu Dhabi. Self-employed people are not eligible for the Home finance from Finance House. The eligibility criteria is as follows:
- Age at maturity is 60 years.
Finance House Home Loan: Fees and Charges
The following are the fees and charges you will be charged for your Home Finance:
- Loan processing fee is 1% of the loan. The minimum loan processing fee is AED 3,000.
- Arrangement fee is 1.5% of the loan amount and the minimum arrangement fee charged is AED 10,000.
- The early settlement fee is 2% of the outstanding loan, if it is a normal closure. If the debt has been taken over by another financial institution, the early settlement fee is 5% of the outstanding loan amount.
- Loan Liability Letter is AED 300.
- Interest for delayed payment is 2% per month on past due date amount.
- The interest rate is 3.5% above 3 months. The minimum interest rate is 10% per annum.
Note: Finance House reserves the right to alter the rates and conditions without prior notice.
Finance House Home Loan: Documents Required
The following documents are to be submitted along with duly filled Home Loan application form:
- Original passport and its copy.
- Expats have to submit valid UAE residence visa.
- Latest 6 months bank statement of account into which your salary is transferred.
- Salary certificate from employer to Finance House.
- Sales Agreement with Developer.
- Proof of down payment made to the developer.
- Post-dated cheque for repayment and security cheque for interest and principal.
Properties located in which areas are financed by Finance House?
Villas and Apartments located in Abu Dhabi are approved by Finance House.
What is the minimum amount that is financed?
The minimum financing amount is AED 200k.
What is the maximum amount that is financed?
The maximum financing amount is AED 2.5 million.
What is the maximum age at maturity requirement?
You must be 60 years old at the time of loan maturity.
Is the loan offered to expats?
Yes, the loan is offered to expats.
Do I have to submit cheques at the time of taking the loan?
Yes, Post-dated cheque for repayment and security cheque for interest and principal are to be submitted.
What are the projects approved by Finance House?
Finance House approved projects include villas and apartments by reputed developers located in Dubai and Abu Dhabi.
Are self-employed people eligible for home loans from Finance House?
Self-employed people cannot avail home loans from Finance House.
What documents are required in order to avail home loans from Finance House?
Here is the list of documents required for verification by the Finance House:
- Original and photocopy of passport
- Valid UAE residence visa (for expats)
- Last 6 months’ bank statements of salary transfer account
- Current date salary certificate from employer addressed to Finance House
- Original sales agreement with the developer
- Proof of down payment made to developer
- Post-dated cheques for repayment and security cheque for Principal + Interest.
Does Finance House have fixed rate and floating rate of interest?
Finance House has competitive interest rates, as compared to other institutions in the market. The minimum interest rate is 10 %.
How much percentage of the cost will be financed and till what tenor?
The percentage of cost that can be financed by Finance House varies from developer to developer.
- The minimum financing amount is AED 200K and the maximum is around AED 2.5 Million.
- The maximum loan tenor is 20 years subject to customer’s age is 60 years at the time of loan’s maturity.
What is the cost for life insurance and property insurance?
Finance House also offers property and life insurance at very competitive rates, as compared to market prices.
Can an existing life insurance policyholder assign the same to FH instead of going for a new life insurance?
Yes, the existing policy can be added to the Finance House home loan account.
When is the loan approved and is there any processing fee?
Once all the required documents are submitted and verified, it takes around 4 business days for credit approval. Approximately 1% of the loan amount, with minimum of AED 3,000 is charged as processing fee.
Can the EMI (principal amount & interest) be paid even before occupying the property?
In the borrower’s interest Finance House has introduced the ‘Interest only serving’ facility and under this service, customers can pay only the interest during the construction period.
At what rate are pre-closer charges calculated?
The fore-closure/pre-closure fee is charged at 2% of the amount prepaid, in case the pre-payment is made with customer’s own funds and 5% if it is re-financed.
How many cheques need to be given upfront?
At the time of the initial loan sign-up, customer need to provide 25 cheques which will include, repayment cheques, processing fee cheque, cheque for life insurance (if any).
Is there any option for top-up or redrawing?
What will be the due date and what you will charge if payment is not made on the date?
Payment due date will be usually end of each month. Yes there is a penalty of 3% in case of any overdue payment.
Can I make a lump sum payment at any point during the loan tenor?
In case the early settlement is being done from own resources then a charge of 2% will be levied on the outstanding loan. In case of loan buy-out by other financial institution then 5% will be charged on the outstanding balance.
If the property registered/booked on joint name, do we need to sign the loan agreement jointly?
Yes. If the property is in joint account names both parties will have to sign all the borrowing documents.
Can I sell or transfer the property at a later stage?
At present, financing is available for first hand residential properties only and when we start lending for second-hand purchases, the transfer of property will be possible subject to meeting FH eligibility criteria by the transferee.
What if I forced to leave the country for any reason (job lost cases etc.) and what will happen for my loan?
The loan needs to be settled with own funds or transfer the finance to a new buyer subject to FH eligibility. In case, both the options are not possible, then FH will assign its right on the property to sell it off and balance money will be refunded to the customer and in case if anything payable to FH, the customer should make and get the clearance from FH.
Can I make EMI for pre-construction period?
We made it convenient and easier for the customers as they need to pay only the interest during construction period and EMIs after the delivery.
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.