Islamic Banking

Top picks: Islamic home finance in the UAE

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Over the past few years, we’ve seen Islamic banks in the UAE take larger and larger shares of loan applications. This is partly down to the fact that Islamic banks have been diversifying into different businesses, offering everything from car to home finance, but also because more non-Muslims are now more aware about the benefits of Islamic finance.

RELATED: Islamic finance explained: Part 1

As a result of this, Islamic banks in the UAE now offer seriously competitive products when it comes to securing home finance. And with that in mind, we figured we’d round up four of the best Islamic home finance options available in the UAE right now. If you’ve got your heart set on Islamic finance for your home, give these products a look-in.

Dubai Islamic Bank DIB Home

This is Dubai Islamic Bank’s latest home finance product, and it makes a case for itself as a winner thanks to its simplicity and its rates. With DIB Home, the bank promises quick processing times, thanks to the fact that it has one of the largest network of approved property developers in the country.

And in terms of its profit rates, the DIB Home product looks pretty attractive. Dubai Islamic Bank promises rates starting from 3.24% per annum, and there are no step-up costs – the rates are linked to the UAE Central Bank’s EIBOR ratings for the entire tenure of the home finance package, plus a fixed margin. And you can get finance for up to 85% of the value of the property you’re buying. On top of this, Dubai Islamic Bank promises exclusive offers on auto finance, personal finance and credit cards for DIB Home customers.

Click here to apply!

ADIB Home Finance for Expats

This is another one that earns its place on this list simply for being simple and easy to apply for. For one thing, profit rates start at 3.75% variable (again, they’re linked to the UAE Central Bank’s EIBOR ratings), and there are easy early settlement options – you can either pay 1% of the outstanding amount, or else AED 10,000, whichever is lower.

On top of this, ADIB throws in quite a few added benefits. You don’t need to have a salary transfer account with the bank, and you’ll get free fire takaful (Islamic insurance) cover. And you can take out finance for up to AED 10 million for a repayment period up to 25 years. A couple of things you should note, though – you’ll need to take out life takaful, and you’ll only be able to borrow up to 75% of the value of the property. You’ll have to pay the other 25% yourself.

Click here to apply!

NBF Islamic Home Finance

Based on the principle of Ijarah, NBF Islamic Home Finance offers competitive profit rates, simple documentation, quick approvals and guidance from an NBF relationship manager throughout the process. Variable rates start at 2.89%, and NBF promises no hidden charges. What’s more, buy-out and top-up options are available, and you can negotiate an installment deferment option with the bank, too.

Click here to apply!

Emirates Islamic Manzili Home Finance

Emirates Islamic’s Manzili Home Finance is based on the principles of Shari’a and is designed to suit your financial capabilities and personal requirements. So, if your’e looking for finance on a complete property, you can choose an option called HomeLease. Or if you’re looking to release cash from your completed properties, you can opt for the HomeInvest product. Indeed, whatever you need home finance for, this product will probably have the answer.

Profit rates start from as low as 2.95% for the first year, moving up to 3.49% afterwards. You can borrow up to AED 20 million to finance your home, and Emirates Islamic will give you a low rate on life takaful if you take out home finance. You’ll also be automatically enrolled in priority banking, and there’s a 0% processing fee if you decide to buy out of the agreement.

Click here to apply! 

Can’t find the home finance product for you here? Click the button below to compare Islamic home finance options from the UAE’s leading banks.

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