The United Arab Emirates has become a true pearl of the Middle East with its technological advancements and spectacular cities, such as Abu Dhabi and Dubai. As a result, the country has drawn entrepreneurs and investors from all over the world along with their finances. Banks operating in the UAE operate in accordance with the regulations of the Central Bank of the United Arab Emirates. As of 2020, there are 28 foreign banks and 23 domestic banks working in the state.
When it comes to getting a home loan in the UAE for non-residents, it can become quite a challenge, because people simply don't know where to start, while being bombarded with offers from various banks. Well, if you decided to buy a house in Abu Dhabi, one of the very first thing you must do is get acquainted with the banks.
For example, here are the best areas in Abu Dhabi for property investment, and where to get a mortgage.
Make sure to check the list of top 10 banks to get a home loan from in Abu Dhabi.
First Abu Dhabi Bank
The First Abu Dhabi Bank is currently the largest bank in the United Arab Emirates. It offers customized products and solutions to its clients. The bank is known worldwide and has a broad network with branches permeating the entire globe.
As of home loans, the First Abu Dhabi bank has several options, and a couple of them are quite nice for foreigners. Among other features, non-residents can enjoy a loan of up to 20 million AED with interest rates starting at 2.75% during the first year, up to 80% financing, and various fixed-rate options, and a loan term up to 15 years. Quite a starter, considering sometimes stupefying home prices in Abu Dhabi.
Emirates NBD
Emirates NBD is the love baby that appeared back in 2007 after the Emirates Bank International (EBI) merged with the National Bank of Dubai (NBD). Today, it is one of the largest banks in the UAE that has ultimately formed a real banking empire.
Foreigners that want to acquire a house in Abu Dhabi, but can't afford to pay the entire sum at once, will most surely enjoy the conditions offered by Emirates NBD in terms of home loans. Non-residents can apply for a 15 million AED loan for up to 25 years with a fixed 3.29% rate for the first three years. And the loan finances up to 80% of property value. Although the interest rate may be not as attractive as that offered by the First Abu Dhabi Bank, clients can have up to 10 years more time to cover it.
Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank is one of the top three banks in the United Arab Emirates. To make its influence and might clear, 58% of its share is held by the Abu Dhabi Investment Council. This council directly collaborates with the Abu Dhabi government. So, if you want to deal with a safe and stable bank, ADCB is a great choice.
Abu Dhabi Commercial Bank offers home loans up to 37.5 million AED for up to 25 years to non-residents. Foreigners and expatriates can get up to 80% financing of the property value and an interest rate from 2.99%. Moreover, the bank offers a hybrid loan interest rate structure, which means that after several first years, the rate becomes variable according to the Emirates Interbank Offered Rate (EIBOR).
Emirates Islamic Bank
Emirates Islamic Bank is another large bank with a great reputation, but this one is also providing shari'a-compliant products to its clients. The bank's products and services are advantageous for both the clients and its stakeholders.
Foreigners looking to buy property in Abu Dhabi can get rather attractive home loans from the Emirates Islamic Bank. The bank provides up to 20 million AED for up to 20 years. Interest rates are linked with EIBOR. While the processing fee is 1%, the bank ensures quick and simple approval.
Dubai Islamic Bank
Dubai Islamic Bank has been dubbed as the UAE's finest Islamic bank. This bank is known for holding close and friendly relationships with its clients and increased trust among them.
Non-residents that want to buy real estate in Abu Dhabi will definitely enjoy the conditions offered by Dubai Islamic Bank. Although the interest rate may seem a bit frustrating at 3.3%, the bank offers home loans up to 50 million AED for up to 25 years. One other thing non-residents should take into account is that their monthly salary has to be at least 12,000 AED.
Union National Bank
The Union National Bank is owned by the governments of Abu Dhabi and Dubai. Along with its banking services and solutions, the bank has a subsidiary, The Al Wifaq Finance Company, that supplies financial solutions to businesses and individuals.
It is natural that the Union National Bank provides home loans to its clients, both nationals and foreigners. The maximum loan amount is 20 million AED for up to 25 years. The interest rate is 3.99%. When applying for a home loan in Abu Dhabi, non-residents must earn at least 10,000 AED per month.
Abu Dhabi Islamic Bank
The Abu Dhabi Islamic Bank (ADIB) is a rather large enterprise. It has 70 branches and 460 ATMs scattered throughout the UAE. In other words, both Abu Dhabi residents and non-residents can rest assured they're dealing with the right bank, when they use ADIB's services.
Foreigners that want to purchase real estate in Abu Dhabi and go to ADIB to handle this matter get quite an impressive offer. The bank offers a home loan up to 15 million AED for up to 25 years, financing up to 80% of the property value. The interest rate is 3.25%, and the client has to have a salary of at least 15,000 AED in order to be eligible for the loan.
National Bank of Ras Al-Khaimah
Over 52% of the National Bank of Ras Al-Khaimah (RAKBANK) belong to the UAE government. The bank has 33 branches in the country, so you can find it almost anywhere in the emirates. It is one of the most trusted UAE banks with numerous awards, including the Arabian Business StartUp Awards 2016's SME Bank of the Year and the Asian Banker's Best Internet Banking Product of the Year award among others.
To its non-resident customers in Abu Dhabi, RAKBANK offers home loans up to 20 million AED for up to 25 years. The starting interest rate is 2.99% which then switches to variable according to EIBOR and the bank's margin. In order to be eligible for a home loan in RAKBANK, the client has to earn at least 15,000 AED a month.
National Bank of Fujairah
National Bank of Fujairah is widely known as one of the first most influential banks in the United Arab Emirates. The bank has become famous in 2017 after receiving the Banker Middle East UAE Product Award for Best Customer Service in Corporate and Investment Banking, Best Treasury Management, Best SME Internet Banking Service, Best Corporate Advisory Service, and Best SME Trade Finance Offering.
In order to get a home loan from the National Bank of Fujairah in Abu Dhabi, non-residents must earn at least 10,000 AED a month. The bank offers loans up to 20 million AED for up to 25 years with an interest rate starting at 3.39%. Clients can also enjoy loan coverage of 80% of the purchased property's value.
Mashreq Bank
Although Mashreq Bank is a relatively new enterprise, it's quickly gaining recognition and trust among clients from all over the United Arab Emirates.
As of home loans in Abu Dhabi for non-residents, Mashreq Bank offers up to 50% of purchased property financing. Clients can get up to 10 million AED for up to 25 years with a flat rate of 3.43%. Moreover, the bank approves home loans for both salaried and self-employed clients.
The Bottom Line
There are many great ways to get a home loan in Abu Dhabi. The banks mentioned above are just the tip of the iceberg, but they definitely have some of the best conditions for foreigners found in the United Arab Emirates. The best way to get just the right loan at just the right bank for you is to find the property you want to buy in Abu Dhabi and then contact each bank to see how they can help you exactly. After that, you will have a list of all the offers and you will be able to choose the one that suits you best.
Summary
1. Mortgages can be arranged for real estate in leading banks of Abu Dhabi.
2. Foreign investors can buy property in Freehold zones with full ownership.
3. Rates on mortgages in Abu Dhabi start at 2.75% and give a loan for at least 15 years.
4. Why foreigners prefer to buy property in Abu Dhabi, read here.