UAE Mortgage

First Abu Dhabi Bank mortgage (FAB mortgage): full guide

Author:

Tijana Kirkov

Date:

19 January 2023

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Here is a guide to the FAB mortgages, including terms and conditions, typical loan offers, and the application process with required documents.

Overview of terms and conditions

As the largest bank in the United Arab Emirates, First Abu Dhabi Bank (FAB) (Arabic: بنك أبوظبي الأول) was formed through a merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD). With its headquarters in Abu Dhabi's Khalifa Business Park, the bank is present on five continents: Asia Pacific (APAC), Europe, Americas, Middle East and Africa (EAMEA). Providing tailor-made conventional and Islamic financial solutions, products, and services through Corporate and Investment Banking and Personal Banking franchises, the company reported a net profit of US$3.4 billion at the end of 2021, 19% higher than the previous year. According to Global Finance, FAB is the safest and best bank in the UAE and the Middle East.

First Abu Dhabi Bank (FAB) offers a variety of mortgage products including:
  • Home Loans for non-UAE residents
  • High loan amounts of up to AED 10 million with flexible payment terms
  • Competitive variable rates with an option to link to EIBOR or MBR
  • No approval in principle fees, allowing you to check your eligibility at no cost
  • Buyout loans with no processing fees
  • Home Loan for Residences and Investments in the UAE
  • Starting from just 0.55% + 3-month EIBOR for the first year
  • A variable introductory rate starting from 0.55% + 3-month EIBOR for the first year on a new home loan
  • Interest rates starting from 0.55% + 3-month EIBOR variable in the first year and 1.25% + 3-month EIBOR variable from the second year onwards
  • Up to 85% financing for first-time buyers
  • No approval-in-principle fee
  • Loans for Small Buildings - for purchasing or refinancing a completed residential building in the UAE
  • Competitive interest rates
  • Loans of up to AED 100 million or up to 70% of the property value
  • Loan duration of up to 20 years
  • Flexible repayment terms from rental income
  • 0.5% - 1% standard processing fee
  • Property management provided by FAB
  • Life and property insurance coverage
  • FAB Green Mortgage - as the bank’s commitment to an environmentally-friendly future, FAB offers an amazing FAB green mortgage for buildings that follow recognized certifications
  • A discount on variable rates based on EIBOR
  • Saving 50% on your processing fee
  • National Housing Loan
  • Provides Emirati citizens of Abu Dhabi with an interest-free housing loan to buy or to build a private home on a plot of land granted by the Abu Dhabi Housing Authority (ADHA)
  • Up to AED 2.25 million, repaid in installments over the approved loan tenor
The following are the general terms and conditions for their home loans that apply to all mortgage applicants regardless of residency and employment status.
  • In excess of 20%, 1.05% penalty on the exceeding amount, capped at AED 10,500 (including VAT)
  • Full settlement or sale during fixed rate
  • 1% penalty of the outstanding loan amount, capped at AED 10,000
  • Full settlement or sale after fixed rate
  • 1% penalty of the outstanding loan amount, capped at AED 10,000
  • Bank transfer
  • 1% penalty of the outstanding loan amount, capped at AED 10,000
  • Life insurance - mandatory in-house policy
  • 0.1344% per annum of the mortgage balance for single life
  • 0.2688% per annum of the mortgage balance for joint life, if both incomes are used for affordability
  • Building insurance
  • 0.05% per annum of property value
  • Service fee
  • AED 5,250

Now let’s look at First Abu Dhabi Bank’s - FAB’s conventional loan options, terms, and conditions for mortgage borrowers that are employed, self-employed, and non-residents as well as Islamic loan options for mortgage borrowers that are employed and self-employed.

Note that the rates, fees, and costs listed are valid until February 28th, 2023. They are subject to change at any time without notice. The 3-month EIBOR rate is based on the UAE Central Bank's website and is current as of January 17th, 2023. EIBOR rates are updated daily and subject to change with the market.

Mortgages for employed borrowers

First Abu Dhabi Bank offers the following mortgage loan options for employed borrowers:
  • Elite - 0.55% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.194%
    Step up variable rate 1.25% Fixed Margin + 4.644% (3-month EIBOR) = 5.894%
    • STL - 0.55% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.194%
      Step up variable rate 1.25% Fixed Margin + 4.644% (3-month EIBOR) = 5.894%
    Minimum floor rate on day 1 variable 1.99%

    Choice of rates for non-salary transfer clients:

    Variable-rate offers:
    • 0.74% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.384%
      Step up variable rate 1.74% Fixed Margin + 4.644% (3-month EIBOR) = 6.384%
    Minimum floor rate on day 1 variable 1.99%
        Other condition/terms/fees for employed borrowers: 
        • 15% for nationals
        • 20% for expats 

          Mortgages for self-employed borrowers

          Due to their less stable income and higher risk, the interest rates offered to self-employed borrowers will typically be higher than those offered to employed borrowers. The First Abu Dhabi Bank offers the following mortgage loan options for self-employed borrowers:

          Variable-rate offers:

          • 0.74% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.384%
            Step up variable rate 1.74% Fixed Margin + 4.644% (3-month EIBOR = 6.384%
          Minimum Floor Rate on day 1 variable 1.99%
              Other condition/terms/fees for employed borrowers: 
              • Down payment from: 
              • 15% for nationals
              • 20% for expats 

              Mortgages for non-resident borrowers

              As with self-employed borrowers, non-resident borrowers are usually subject to stricter lending conditions. The First Abu Dhabi Bank offers the following mortgage loan options for non-resident borrowers:

              Variable-rate offers:

              • 2.5% Fixed Margin for the life of the loan + 4.644% (3-month EIBOR) = 7.144%
              Minimum Floor Rate on day 1 variable 3.49%
                  Other condition/terms/fees for employed borrowers: 
                  • Down payment from 35%

                  Islamic mortgages for employed borrowers

                  An Islamic mortgage is a mortgage that's compliant with Sharia’h law, which means that in Islam, lending money to make a profit is considered haram (or sinful), therefore, Islamic financial institutions are forbidden from charging interest and are instead finding other ways to make mortgages halal (or lawful). The First Abu Dhabi Bank offers the following Islamic mortgage loan options for employed borrowers:

                  Choice of rates for salary transfer clients
                  • 4.89% fixed for 3 years
                  • 4.99% fixed for 5 years
                  • 5.09% fixed for 10 years
                  Elite Reversion rate being 1.75% Margin + 4.644% (3-month EIBOR or MBR) - 4%

                  Salary Transfer Reversion rate being 1.99% Margin + 4.644% (3-month EIBOR or MBR) - 3.75%

                  Minimum floor rate being 2.99%.

                  Variable rate offer:
                  • Elite - 0.55% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.194%
                    Step up variable rate 1.25% Fixed Margin + 4.644% (3-month EIBOR) = 5.894%
                  • STL - 0.55% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.194%
                    Step up variable rate 1.25% Fixed Margin + 4.644% (3-month EIBOR) = 5.894%
                  Minimum Floor Rate on day 1 variable 1.99%.

                  Choice of rates for Non-salary transfer clients:
                  • 4.99% fixed for 3 years
                  • 5.09% fixed for 5 years
                  • 5.34% fixed for 10 years
                  Reversion rate being 2.25% Margin + 4.644% (3-month EIBOR or MBR) - 3.5% - Income transfer
                  Reversion rate being 2.5% Margin + 4.644% (3-month EIBOR or MBR) - 3.25% - No Income transfer

                  Minimum floor rate being 3.49%.

                  Variable rate offer:
                  • 0.74% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.384%
                    Step up variable rate 1.74% Fixed Margin + 4.644% (3-month EIBOR) = 6.384%
                  Minimum Floor Rate on day 1 variable 1.99%
                      Other condition/terms/fees for employed borrowers: 
                      • Down payment from: 
                      • 15% for nationals
                      • 20% for expats 

                      Islamic mortgages for self-employed borrowers

                      First Abu Dhabi Bank offers the following Islamic mortgage loan options for self-employed borrowers:
                      • 4.99% fixed for 3 years
                      • 5.09% fixed for 5 years
                      • 5.34% fixed for 10 years
                      Reversion rate being 2.25% Margin + 3-month EIBOR or MBR - 3.5% - Income transfer
                      Reversion rate being 2.5% Margin + 3-month EIBOR or MBR - 3.25% - No Income transfer

                      Minimum floor rate being 3.49%.

                      Variable-rate offer:
                      • 0.74% fixed margin for 1 year + 4.644% (3-month EIBOR) = 5.384%
                        Step up variable rate 1.74% Fixed Margin +  4.644% (3-month EIBOR) = 6.384%
                      Minimum Floor Rate on day 1 variable 1.99%
                          Other condition/terms/fees for employed borrowers: 
                          • Down payment from: 
                          • 15% for nationals
                          • 20% for expats 
                          Contact our experienced mortgage advisers for help understanding any of the above information. They'll be happy to answer any questions you may have.

                          Application process

                          While mortgage applications are being simplified, there are still quite a few steps involved. The good news is that you don't need to do everything by yourself. A mortgage broker can help you complete the application accurately, explain the necessary terms, and guide you through the application process. Here is the first page of the First Abu Dhabi Bank mortgage application form:
                          First page of the First Abu Dhabi Bank mortgage application form.
                          As well as filling out the mortgage application, you will have to submit several documents so the bank can verify your identity, analyze your finances, and approve your loan. The documentation that First Abu Dhabi Bank requires for salaried and self-employed mortgage applicants is listed in the following table. 
                          Required documents for the FABank mortgage application (Conventional and Islamic)
                          Salaried: Self-employed:
                          Pre-approval
                          Mortgage loan application form (completed) Mortgage loan application form (completed)
                          Passport copy Passport copy
                          National ID No. (for UAE Nationals) National ID No. (for UAE Nationals)
                          Residence visa copy (for non-GCC expatriates) Residence visa copy (for non-GCC expatriates)
                          Salary transfer letter or salary certificate (as applicable) Trade licence copy
                          Bank statements for salary account (for the last 6 months) Chamber of commerce registration
                          Property sale and purchase agreement, offer letter, or building contract floor plans Memorandum and articles of association
                          Floor plans Audited financials (for the last 2 years)
                          Receipts for down payments Bank statements for the personal account and business account (for the last 6 months)
                          Property valuation report Property sale and purchase agreement, offer letter, or building contract floor plans
                          Cheque/debit authority for Fees (AIP or processing fee as applicable), stamp duty Floor plans
                          Receipts for down payments
                          Property valuation report
                          Cheque/debit authority for Fees (AIP or processing fee as applicable), stamp duty
                          Post-approval
                          Title deed/search certificate Title deed/search certificate
                          Conditional assignment (if required) Conditional assignment (if required)
                          Property management agreement (if the mortgage loan is for an investment property) Property management agreement (if the mortgage loan is for an investment property)
                          Life insurance confirmation/certificate Life insurance confirmation/certificate
                          Property insurance confirmation/certificate Property insurance confirmation/certificate
                          Security cheque(s) (1 cheque per applicant) Security cheque(s) (1 cheque per applicant)
                          Here are some additional documents you may need to provide: 
                          • Supporting documents (for other income)
                          • Liability letter (for takeovers)
                          • Proof that the Government granted the land to the Customer (for granted land)
                          • Undertaking for AECB credit score check 
                          • Construction permit (for all self-builds)
                          • Pre-approval fee cheque and amount 
                          • Other documents (as required and defined by Credit)

                            To wrap up

                            In this guide, we've shown you what type of loan offers you could expect from the First Abu Dhabi Bank, and what documents you'll need to present. There is, however, always a possibility that these can change, so you should stay up-to-date on the latest trends and offers. Getting help from a mortgage broker such as Kredium will make this easier for you.

                            Whether you are a UAE national, an expat living in the UAE, or a non-resident, our professionals will guide you through the entire mortgage process and provide you with personalized loan offers. With thousands of property listings on our search portal from all the top developers, we can also help you find a property in Dubai. 

                            Calculate your monthly mortgage payments, rental yields (for investment properties), and more with our mortgage calculator. Please feel free to contact us or register on our site and we'll take care of everything for you. For more information on UAE mortgages and real estate, head to our blog section
                            Photo credits:
                            • Photo | Wikipedia
                            • Screenshot | First Abu Dhabi Bank mortgage application form

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