A guide to Commercial Bank of Dubai mortgage offers, including their terms/conditions, typical loan offers, and application process with required documents.

Overview of terms and conditions

Commercial Bank of Dubai (CBD) was established in 1969 by an Emiri Decree issued by the late Sheikh Rashid bin Saeed Al Maktoum. CBD began as a joint venture between Commerzbank, Chase Manhattan Bank, and the Commercial Bank of Kuwait, with a few UAE businessmen holding a minority stake in the company. The government of Dubai became the majority shareholder in 1982 when the company became a national shareholding company. At the end of 2021, the bank had over AED 114 billion in total assets. 

CBD offers a range of financial services with 15 branches and over 100 ATMs across the UAE. They have residential mortgage loans for UAE nationals, residents, and non-residents, both conventional and Islamic options. CBD also offers Commercial real estate loans. 

The following are the general terms and conditions for their residential loans that apply to all mortgage applicants
  • 50% refund on valuation fee upon receiving full loan amount
  • Up to 15% partial settlement allowed per annum
  • In excess of 15%, 1.05% penalty on partial settlement amount, capped at AED 10,500 (including VAT) 
  • Late payment fee: 2% in addition to the penal interest, AED 200 per past-due amount with a maximum penal interest capped at AED 700
  • Bank transfer fee - 1.05% penalty on the exceeding amount, capped at AED 10,500 (including VAT)
  • Life insurance terms - mandatory in-house policy 
  • 0.14% per annum of the mortgage balance for single life
  • 0.28% per annum of the mortgage balance for joint life, if both incomes used for affordability
  • Building insurance: 0.04% per annum of property value
  • Down payment from: 
  • 15% for nationals
  • 20% for expats
  • 25% for non-residents 

CBD offers financing for properties in Dubai, Abu Dhabi, Sharjah, Ajman, and Ras Al Khaimah for UAE nationals. Expats and non-residents can finance properties in Dubai and Abu Dhabi. In general, all completed properties with a clear salable title deed that is registered at the Statutory Regulatory Body as well as properties that are under construction by developers on CBD’s approved list can be financed. 

The Commercial Bank of Dubai has different mortgage offers, terms, and conditions for their conventional, Islamic, and commercial loan products. Keep in mind that the rates below were updated by CBD on January 15th, 2023 and are subject to change without notice (as are the associated fees and costs). The 3-month EIBOR rate is taken from the UAE Central Bank website and is current as of January 23rd, 2023. EIBOR rates are updated daily and change with the market conditions. 

Mortgages for employed borrowers

CBD has multiple fixed-rate offers and one variable-rate offer for salaried borrowers. 

Fixed-rate offers:  
  • 5.20% fixed for 1 year
  • 4.75% fixed for 3 years 
  • 0.75% processing fee
  • 4.99% fixed for 3 years 
  • 0.50% processing fee
  • Reversion rate: 
  • For loan-to-value ratio above 50%: 1.79% margin for the remaining term + 4.647% (3-month EIBOR) = 6.437% 
  • For loan-to-value ratio up to 50%: 1.69% margin for the remaining term + 4.647% (3-month EIBOR) = 6.337% 

Additional fixed-rate terms:

  • Minimum processing fee of AED 5,000 (+ VAT)
  • Additional 0.75% for loans above AED 10,000,000
  • In case of mortgage buyout from another bank during the first 3 years of the fixed-rate, CBD reserves the right to claim an amount equivalent to the difference in interest between the variable rate and fixed rate
  • 1.39% margin for the life of the loan + 4.647% (3-month EIBOR) = 6.037%
  • Zero processing fee on variable-rate loans

Other terms/conditions for salaried employees:

  • Pre-approval fee: AED 1,575
  • Service fee: AED 5,250 
  • Minimum monthly income of AED 12,000
  • Minimum length of employment of 6 months 

Mortgages for self-employed borrowers

You’ll see that self-employed borrowers have higher initial rates and reversion rates than salaried residents, but the same service fee. 

Fixed-rate offers:
  • 5.60% fixed for 1 year
  • 5.23% fixed for 3 years
  • Reversion rate:
  • For loan-to-value ratio above 50%: 1.99% margin for the remaining term + 4.647% (3-month EIBOR) = 6.637% 
  • For loan-to-value ratio up to 50%: 1.79% margin for the remaining term + 4.647% (3-month EIBOR) = 6.437% 
The additional fixed-rate terms are the same for self-employed borrowers, as listed above for salaried employees. 

Variable-rate offer:
  • 1.59% margin for the life of the loan + 4.647% (3-month EIBOR) = 6.237%
  • Zero processing fee on variable-rate loans

Other terms/conditions for self-employed borrowers:
  • Pre-approval fee: AED 2,100
  • Service fee: AED 5,250 
  • Minimum monthly income of AED 20,000
  • Minimum length of 3 years in business

Mortgages for non-resident borrowers

Commercial Bank of Dubai has a variety of options for non-resident mortgage borrowers. While the initial fixed rate may be similar to or even lower than the previous offers, you’ll notice that the reversion rate margin is significantly higher and the service fee is more than it is for salaried or self-employed residents. 

CBD has different offers for non-residents depending on the total loan amount. First, let’s look at the fixed-rate non-resident mortgage offers for loan amounts less than AED 5,000,000. 

Fixed-rate offers for a loan amount below AED 5,000,000:
  • Salaried non-residents: 5.14% Fixed 3 years 
  • Self-employed non-residents: 5.44% Fixed 3 years 
  • Reversion rate:
  • For loan-to-value ratio above 50%: 2.79% margin for the remaining term + 4.647% (3-month EIBOR) = 7.437%
  • For loan-to-value ratio up to 50%: 2.49% margin for the remaining term + 4.647% (3-month EIBOR) = 7.137%

Now, the fixed-rate offers for mortgage loans greater than AED 5,000,000. 

Fixed-rate offers for a loan amount above AED 5,000,000:
  • Salaried non-residents: 5.24% Fixed 3 Years 
  • Self-employed non-residents: 5.54% Fixed 3 years 
  • Reversion rate:
  • For loan-to-value ratio above 50%: 2.79% margin for the remaining term + 4.647% (3-month EIBOR) = 7.437% (see rate adjustment) 
  • For loan-to-value ratio up to 50%: 2.49% margin for the remaining term + 4.647% (3-month EIBOR) = 7.137% (see rate adjustment)
Additional fixed-rate terms: 
  • Rate adjustment: additional 0.75% on fixed rates for loan amounts above AED 10,000,000

The variable-rate offers for non-residents are the same no matter what the loan amount. There are two variable-rate options for non-resident borrowers. 

Variable-rate offers:
  • Salaried non-residents: 2.29% margin for the life of the loan + 4.647% (3-month EIBOR) = 6.937%
  • Self-employed non-residents: 2.49% margin for the life of the loan + 4.647% (3-month EIBOR) = 7.137%

Other terms/conditions for non-residents:
 ‍
  • Pre-approval fee: AED 2,100
  • Bank processing fee : 1% of the loan amount (+ VAT) minimum of AED 5,000 (+ VAT)
  • Service fee AED 7,500 

Islamic mortgages

Commercial Bank of Dubai Al Islami offers Islamic mortgages for Muslims in accordance with Sharia’h law. Many of the typical fees are the same as they are for conventional loans, depending on the residency and employment of the borrower.
CBD Al Islami logo

The general terms and conditions for their Islamic loans are as follows:
  • Up to AED 15,000,000
  • Refinancing available (equity release for fully paid properties)
  • Special profit rate starting from 4.29% 
  • Loan tenure up to: 
  • 25 years for UAE nationals
  • 20 years for expats

Commercial real estate financing

As the name suggests, CBD also finances commercial property mortgages via CBD Business Banking. They provide loans for the purchase of commercial property and also loans against future rental income.  

The general terms and conditions for their Commercial loans are as follows: 
  • Eligible: UAE registered businesses 
  • For land and real estate financing 
  • Loan clearance through future rental income 
  • Can finance: properties in Dubai and Abu Dhabi including office buildings, shops, residential buildings, villas, warehouses, showrooms, etc. 

Application process

The first page of Commercial Bank of Dubai’s mortgage application is shown below. The application process can be confusing, especially for first-time buyers or borrowers with unique financial circumstances. Having a
mortgage broker by your side can be a huge help as they’re focused on getting you the best loan offer possible.
CBD first page of mortgage application.

Mortgage applicants will also be required to present the bank with multiple documents in order to process the application and approve the borrower for the loan. The documents that CBD requires are listed below. There may be additional documentation required on a case-by-case basis.
Required documents for a CBD conventional or Islamic mortgage application
Salaried: Self-employed:
Application form, consent letter & authorization letter for Bureau check Application form, authorization letter for lending, and consent letter for Bureau check
National ID or valid passport, residence visa and Emirates ID Copy of Trade License, Chamber of Commerce Registration, Memorandum and Articles of Association
Original 3 months bank statement for new customers Original 12 months company and personal bank statements for new customers
Salary Certificate Security cheque (amount shouldn’t be more than 120% of the Finance amount)
Security cheque (amount shouldn’t be more than 120% of the Finance amount)

Borrowers applying for a commercial loan will need to provide other documents. 

Documentation for commercial loans:
  • National ID or valid passport with UAE residence visa and Emirates ID of all signing authorities and shareholders (if applicable)
  • Valid legal and constitutive documents (i.e. Trade License, Certificate of Commercial Registration, Free Zone Certificate of Incorporation, Memorandum of Association, Partnership Agreement) as applicable
  • Power of Attorney or Board Resolution (if applicable)
  • Proof of Address
  • Details of Ultimate Beneficial Owners
  • Bank Reference Letter and Company Profile (if applicable)
  • Audited financial statements

To conclude

The Commercial Bank of Dubai has multiple loan offers for all types of borrowers. Before you enter the big commitment of taking out a mortgage loan, it’s important to review the terms and conditions that each bank can offer you. While the potential loan offers from CBD are described in this guide, it’s definitely worth taking more time to figure out the actual rates that they can offer you. Kredium, as an international mortgage broker, can present you with mortgage offers from multiple UAE banks so that you can find the best financing option. 

We have a property search portal where you can peruse thousands of completed and off-plan properties in Dubai. Also checkout our interactive maps to focus your search on the most popular areas like Meydan, the World Islands, and Dubai Creek Harbour. When deciding on a property, a mortgage calculator allows you to estimate your payment schedule. Whether you’re still looking for your ideal property or you’re ready to take out a mortgage, we can provide you with expert guidance. Just sign-up or contact us at any time!

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