Key Facts Statement (KFS)
Home Loan - Fixed & Variable Interest Rate

Home Loan unlocks the doorway to your dream home. This product is an installment loan. This KFS provides you with indicative information about interest, fees and charges of this product. Kindly refer to our Welcome Letter for the final terms of your loan.


Product Information - Home Loans for

Loan Type Home Loan
Loan Amount Up to AED 15,000,000
Loan to value (Loan amount as % property cost): up to 85% for UAE Nationals and 80% for Expatriates
Down payment Minimum 15% for UAE Nationals & 20% for Expatriates of the property cost
Loan Currency AED (Arab Emirates Dirham)
Loan Period Up to 300 months (25 years)
Interest Rate (Indicative)- Variable Starting from 2.14% up to 6.00% per annum. There are two options:
  • The interest rate is fixed for an introductory period (i.e. 2/3/5 years). For the remaining period, the interest rate is variable, linked to EIBOR1 (i.e. EIBOR + fixed margin)
  • Fully variable rate: The interest rate for the entire period of the loan is variable and linked to EIBOR (i.e. EIBOR + fixed margin)
Annualised Percentage Rate (APR) (Indicative) Starting from 2.22% up to 6.08%. APR is a reference rate, which includes applicable interest, fees and charges of the product, expressed as an annualised rate.
Loan Repayment Your loan repayment is in Equated Monthly Installment (EMI) and if you have a variable rate loan may vary based on EIBOR rate. EMI is calculated by adding the principal loan amount and total interest and dividing this total by the loan period in months.

When variable interest rate is linked to EIBOR (The Emirates Interbank Offered Rate) i.e. EIBOR + Fixed Margin, the EMI will change depending on the actual EIBOR rate on the review date. You can choose variable price linked to 1 month or 6 months EIBOR. Variable pricing linked to 1-month EIBOR will be reviewed monthly and variable pricing linked to 6-months EIBOR will be reviewed every 6 months.

Key Fees & Charges

Loan Processing Fee 1.05% of the loan amount.
This is a non-refundable fee, and will not be refunded in case you decide to withdraw the loan application
Early Settlement/ Foreclosure Fee 1.05% of outstanding principal amount or AED 10,500 whichever is lower (inclusive of VAT)
Partial Settlement Fee 1.05% of payment amount or AED 10,500 whichever is lower (inclusive of VAT)
Late Payment Fee AED 420 (inclusive of VAT) is billed only when we do not receive monthly repayment from you, in full, on its due date.
Valuation charges AED 3,150 (Completed Property) / AED 21,000 (For Self-Construction) inclusive of VAT
Valuation is an independent assessment to determine the market value of the property.

Representative Example

Type of Loan Introductory Fixed Rate & subsequently Variable Rate Fully Variable Rate
Property Cost AED 1,000,000 AED 1,000,000
Down Payment AED 200,000 AED 200,000
Loan Amount AED 800,000 AED 800,000
Loan Period 300 months (25 years) 300 months (25 years)
Annualised Percentage Rate (APR) 3.07% APR
Based on fixed interest rate of 2.99% per annum and processing fee of 1.05%. 		2.22% APR
Based on fixed interest rate of 2.14% per annum (i.e. 1.89% fixed margin + 0.25% 1-month EIBOR) and processing fee of 1.05%.
Terms
  • Fixed interest rate of 2.99% per annum for 3 years of introductory period.
    The Fixed interest rate is equivalent to flat rate of 1.63% per annum.
  • Post 3 years of introductory period, Variable interest rate will apply. If the 1-month EIBOR is 0.25% on the review date, then the revised variable interest rate will be 2.14% per annum (0.25%+1.89% Fixed Margin) i.e. equivalent flat rate of 1.135% per annum.
  • A fully variable interest rate will apply for entire loan period. If the 1-month EIBOR is 0.25% on the review date, then the revised variable interest rate will be 2.14% per annum (0.25%+1.89% Fixed Margin) i.e. equivalent flat rate of 1.135% per annum.
Repayment
  • EMI of AED 3,789 for first 3 years of introductory period
  • EMI of AED 3,481 from 4th year.
    EMI is calculated based on the assumption that 1-month EIBOR rate is 0.25% and fixed margin is 1.89%. EMI may vary based on EIBOR rate.
  • EMI of AED 3,446 for full loan period.
    EMI is calculated based on the assumption that 1-month EIBOR rate is 0.25% and fixed margin is 1.89%. EMI may vary based on EIBOR rate.
Sensitivity of EIBOR change
If -1month EIBOR is Then EMI is
0.50% AED 3,538
1.00% AED 3,719
If -1month EIBOR is Then EMI is
0.50% AED 3,545
1.00% AED 3,748
Early Settlement Fee (Example) Outstanding principal amount
Early Settlement Fee @1.05% 		AED 500,000
AED 5,250

Representative Example of Insurance for Home Loan

Life Insurance: We want you and your family to enjoy the peace of mind that financial protection brings. The life insurance covers the outstanding loan amount in respect of Death and/or Permanent Total Disability of the borrower subject to terms and conditions of the policy

Installment Month Outstanding Loan Amount Life Insurance Rate [per month] Monthly Premium
1 800,000 0.018% 144.00
2 798,000 0.018% 143.64
3 796,000 0.018% 143.28

Life Insurance fee is calculated based on the loan amount at the time of processing the loan and will vary based on loan balance. This fee is charged monthly starting from the date of loan disbursal.


Property Insurance: Helps to protect your home and belongings against a whole range of threats. Property insurance premium is calculated on the property value at the time of loan approval.


Installment Month Market Value or Property Value [whichever is higher] Property Insurance Rate [per month] + VAT Monthly Premium [Inclusive VAT]
1 1,000,0000 0.01% 105
2 1,000,0000 0.01% 105
3 1,000,0000 0.01% 105

Property Insurance fee is calculated based on property price at the time of processing the loan and will remain fixed for the loan period. This fee is charged monthly starting from the date of loan disbursal.


Important Links
Additional Information
  • The loan amount you are eligible for and the interest rate offered may differ from the representative example as shown above. This will depend on your credit profile and affordability assessment done by the bank.
  • The processing of your loan application leading to disbursal into your account may take up to 10 business days from the time bank receives complete documentation. In case your loan is being taken over from another institution the processing time may extend depending on receipt of all documentation from the other institution.
  • All interest charges applicable are calculated from the date of loan disbursal. This will also apply in the case of a deferred First Payment Date.
  • The Bank reserves the right to make permissible changes to the Terms and Conditions. You will be given 60 calendar days’ notice before such changes are implemented
  • In case you fail to fulfil your obligations as per the Terms and Conditions, before and during your relationship with us, there will be consequences including, but not limited to penalties
Warning !!!

If you do not meet the monthly repayments on your loan, your account will go into arrears and incur late payment fee.

Warning !!!

When you miss repayments, this could affect your credit score and limit your ability to access loan/financing in the future.

Warning !!!

When you refinance1 your loan or avail installment deferments, it may take longer to pay off than your previous loan. It may also result in paying more interest.

Includes Top-up, Restructuring or Rescheduling

Warning !!!

If you do not keep up your repayments, you may lose your asset.

Warning !!!

Any other accounts you have with the Bank may be used to set off against amounts owed under your home loan.