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

Overview of terms and conditions

RAKBank is a public joint-stock company headquartered in Ras Al Khaimah, United Arab Emirates. Ras Al Khaimah Bank PJSC, trading under RAKBANK, is 52.76% owned by its government and is listed on the Abu Dhabi Exchange. Founded in 1976, it is one of the UAE's oldest and most dynamic banks. In 2001, it underwent a major transformation, focusing on Personal and Business Banking instead of Corporate Banking. Through its 27 branches, ATMs, telephones, online and mobile banking channels, the Bank provides conventional and Islamic retail, small business, and commercial banking services. Furthermore, it was recognized by Forbes as one of the Best Banks of 2021 and by International Business Magazine as the Best Online Bank of UAE in 2021.

RAKBank offers a variety of mortgage products including conventional and Islamic mortgages for resident expatriates, GCC (Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia) nationals, and UAE nationals. 

The Home Loan product goes under the name Home In One and is available for salaried and self-employed individual customers wanting to buy approved residential and commercial properties. You can finance the purchase of a property in Abu Dhabi, Dubai or Ras Al Khaimah with this flexible, affordable and easy mortgage product. With Home in One, you get a current account, savings account, and mortgage account all in one easy-to-manage account. The more you deposit, the less you pay in interest.

These are the main features of RAKBank's current Home in One offer for ready residential properties: 
  • Variable rate from day 1 starting from 3-month EIBOR + 1.20%  to 3-month EIBOR + 1.99% reducing rate per annum
  • Attractive option of 3 years fixed rates for salaried and self-employed customers starting from 5.09% per annum to 5.39% reducing rate per annum
  • Follow on rates after expiring the fixed rate period starting from 3 months EIBOR + 1.79% to 3-month EIBOR + 2.19%
  • No in principle approval (IPA) fees
  • 0% processing fee for buyout loans
  • Special discount on evaluation fees of AED 1,850 
  • Attractive discounts on life insurance at 0.0242% p.m. + VAT as applicable
  • Bundled Emirates Skywards World Elite Credit Card offered with the loan - subject to availability in your debt-burden ratio (DBR)
The following are the general terms and conditions for their home loans that apply to all mortgage applicants regardless of residency and employment status.
    • 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
    • Building insurance
    • 0.035% + VAT per annum of property value
    • Service fee
    • AED 5,250

    We will now examine RAKBank's options, terms, and conditions for conventional and Islamic mortgages for employed and self-employed borrowers, as well as Islamic mortgages for non-residents.

    In advance of the change, the Bank is required to give you 60 days' notice of any changes to the features, fees, charges, or terms and conditions, and the interest rates are subject to change on 30 days' notice. The 3-month EIBOR rates are taken from the UAE Central Bank website and are current as of January 20th, 2023. EIBOR rates are updated daily and subject to change with the market.

    Conventional and Islamic mortgages for employed borrowers

    RAKBank offers the following mortgage loan options for employed borrowers: 

    Fixed-rate offer:
    • 5.09% fixed for 3 years
    Elite - Reversion rate is a fixed margin of 1.79% for the remaining term + 4.48% (3-month EIBOR) = 6.27%
    Non Elite - Reversion rate is a fixed margin of 1.99% for the remaining term + 4.48% (3-month EIBOR) = 6.47%

    Variable-rate offer:
    • Elite - 1.2% fixed margin for the life of the loan + 4.48% (3-month EIBOR) = 5.68%
      • Non Elite - 1.79% fixed margin for the life of the loan + 4.48% (3-month EIBOR) = 6.27%
      No minimum floor rate
          Other condition/terms/fees for employed borrowers: 
          • For Elite customers - up to 25% partial settlement allowed per annum after the fixed period
          • In excess of 25%, 1% penalty on the exceeding amount, capped at AED 10,000
          • For non-Elite customers - up to 20% partial settlement allowed per annum after the fixed period
          • In excess of 20%, 1% penalty on the exceeding amount, capped at AED 10,000
            • Minimum monthly income required for salaried individuals is AED 15,000. In case of single and joint expats borrowers, one borrower’s salary has to be a minimum of AED 10,000
            • Maximum loan amount up to AED 13 million

            Conventional and Islamic 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:

            Fixed-rate offer:
            • 5.39% fixed for 3 years
            Elite - Reversion rate is a fixed margin of 1.99% for the remaining term + 4.48% (3-month EIBOR) = 6.47%
            Non Elite - Reversion rate is a fixed margin of 2.19% for the remaining term + 4.48% (3-month EIBOR) = 6.67%

            Variable-rate offer:
            • Elite - 1.4% fixed margin for the life of the loan + 4.48% (3-month EIBOR) = 5.88%
            • Non Elite - 1.99% fixed margin for the life of the loan + 4.48% (3-month EIBOR) = 6.47%
            No minimum floor rate
                Other condition/terms/fees for employed borrowers: 
                • For Elite customers - up to 25% partial settlement allowed per annum after the fixed period
                • In excess of 25%, 1% penalty on the exceeding amount, capped at AED 10,000
                • For non-Elite customers - up to 20% partial settlement allowed per annum after the fixed period
                • In excess of 20%, 1% penalty on the exceeding amount, capped at AED 10,000
                • Maximum loan amount up to AED 20 million

                Islamic mortgages for non-resident borrowers

                As with self-employed borrowers, non-resident borrowers are usually subject to stricter lending conditions. RAKBank offers the following mortgage loan options for GCC non-resident borrowers (Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia), both salaried and self-employed: 

                Variable-rate offers:

                • Fixed margin of 3.0% for life of the loan + 4.48% (3-month EIBOR) = 7.48%
                    Other condition/terms/fees for employed borrowers: 
                    • Up to 20% partial settlement allowed per annum after the fixed period
                    • In excess of 20%, 1% penalty on the exceeding amount, capped at AED 10,000

                      Application process

                      There are still quite a few steps involved in mortgage applications, despite the fact that they are being simplified. The good news is that you don't need to do everything by yourself. A mortgage broker will guide you through the application process and help you complete it accurately. Here is the first page of the RAKBank mortgage application form:
                      First page of the RAKBank mortgage application form.
                      The bank will need several documents in addition to the mortgage application in order to verify your identity and analyze your finances for mortgage approval. RAKBank's documentation requirements for salaried and self-employed mortgage applicants are listed below.
                      Required documents for the RAKBank mortgage application (Conventional and Islamic)
                      Salaried: Self-employed:
                      Mortgage loan application form (completed) Mortgage loan application form (completed)
                      Passport and Emirate ID (if applicable) Passport and Emirate ID (if applicable)
                      Labour Card (if applicable) Audited financial statements (last 2 years)
                      Khulasat Qaid (if applicable) Other income documents e.g. tenancy contracts and title documents for rental properties
                      Current dated salary certificate addressed to RAKBANK (stating designation, length of employment, detailed breakdown of salary) Personal bank account statements (last 6 months)
                      Other income documents e.g. tenancy contracts and title documents for rental properties Corporate bank account statements (last 6 months)
                      Salary bank account statements (reflecting last 6 salary credits in the account) If un-audited financial statements - 12 months bank statements for both company and Personal accounts
                      Other income account statements (last 6 months) Copy of Trade License (at least one year LOB)
                      Copy of Sale/Purchase Agreement Copy of Chamber of Commerce Registration
                      Receipts of customer contribution and bank account statements validating this payment Copy of Memorandum and Articles of Association
                      Cheque for loan processing fee/valuation fees Copy of Certificate of Incorporation, Register of Shares and Power of Attorney (applicable for off-shore companies)
                      Copy of Sale/Purchase Agreement
                      Receipts of customer contribution and bank account statements validating this payment
                      Cheque for loan processing fee/valuation fees
                      Note: For your loan application to proceed, the Bank Staff must be provided with all of the original documents.

                        To wrap up

                        As we've shown you in this guide, you'll be able to expect a variety of loan offers from RAKBank, as well as what documents you'll need to present. You should, however, stay on top of the latest trends and offers as they might change. You can ease this process by getting help from a mortgage broker such as Kredium.

                        We will provide you with personalized loan offers and guide you through the entire mortgage process regardless of whether you are a UAE national, an expat living in the UAE, or a non-resident. You can also find a property in Dubai on our search portal, which has thousands of properties from all the top developers.

                        With our mortgage calculator, you can calculate your monthly mortgage payments, rental yields (for investment properties), and more. Let us know how we can help you by contacting us or registering on our site. For more information on UAE mortgages and real estate, head to our blog section
                        Photo credits:
                        • Photo | Campaingme
                        • Screenshot | RakBank mortgage application form

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