FAQ - Mortgage Services

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Questions

1. Who can apply for an ADCB Mortgage?

   All UAE residents (UAE Nationals and Expatriates) and non-residents earning sufficient income from either a salary or from running a company (self-employed), are eligible to apply for an ADCB Mortgage. The applicant if an UAE resident (Nationals & Expatriates), must be aged 21 and above, and if a Non-resident must be aged 25 and above to be eligible for a mortgage from ADCB.

2. What is the minimum income required per month to avail a mortgage from ADCB?

   Employment Category	UAE Nationals	Expatriate Residents	Non-residents (Post Tax)
   Salaried	AED 8,000 p.m.	AED 15,000 p.m.	AED 25,000 p.m.
   Self-employed	AED 75,000 p.m.  average credit turnover	AED 75,000 p.m.  average credit turnover	N/A

3. Do I need to be an existing ADCB account holder or customer to apply for a mortgage?

   You do not need to have an account or be an existing customer of ADCB to take a mortgage. However, should you wish to do so, it will be a mandatory to open a current account from ADCB which will then also be acting as your mortgage repayment account. Regular savings account from ADCB will not be accepted as a mortgage repayment account.

4. How do I apply for an ADCB mortgage?

   There are three convenient ways to apply for an ADCB Mortgage.

   Simply apply online through our ADCB.com website, or visit any of our ADCB Branches or alternatively you may also simply call our Toll free ADCB Contact Centre on 600 50 2030, for one of our dedicated Mortgage Relationship Managers to further assist you with your requirement.

5. What is the maximum and minimum mortgage loan amount that I can avail?

   The maximum loan amount is AED 24,000,000 and the minimum loan amount is AED 250,000. However please note that the maximum loan amount could vary according to personal circumstances, the nature of the transaction and the property developer involved in the transaction.

6. I own multiple properties; can I take mortgage finance for each one of them or is there any restriction on the number of properties that I can mortgage from ADCB?

   There are certain restrictions on the number properties you can finance based on your current residency and property construction status. Please refer to the below table for guidance:

   Sr	Type of Customer	Project Status	Number of Properties that can be financed
   1	UAE Residents	Completed	No Limit
   2	UAE Residents	Under Construction	1 Property
   3	Non Residents	Completed	2 Properties
   4	Non Residents	Under Construction	Not Applicable
   Note: Definition of 1st Property, if the customer has no other mortgages in the UAE, irrespective of the properties owned, the property to be financed can be defined as 1st property. Simultaneously, if the customer has a mortgage on any property, then the property can be financed will be defined as 2nd property.

7. What is the applicable interest rate?

   Currently ADCB offers customers a choice to select any one of the two types of interest rate options on mortgages – Variable or Hybrid rate options. 

   Hybrid Rate Option: This type of rate option allows customers to fix their applicable interest for a short period of time, after which the interest rate shifts back to the Bank’s applicable variable rate which is currently based on 6 Month EIBOR + margin. Currently the hybrid rate option, allows interest rate to be fixed for a period of three years only. 

   Variable Rate Option: Also commonly known as a floating rate loan, is a type of loan option where the interest rates will vary based on prevailing market conditions. The Bank’s current applicable variable rate which is based on 6 Month EIBOR + margin. 

   Important Notes & Definitions:
   • Definition of EIBOR: UAE Dirham Interbank Offered Rate for UAE Dirhams as determined by the Bank from time to time.
   • Review Frequency: The Bank will review the ‘6 months EIBOR’ interest rates in January and July each year. In the case that the 6 months EIBOR has changed on the review date, the rate applicable on the respective mortgage will be amended to reflect the same. Please also note that the 6 months EIBOR review can be done at a lesser / longer frequency at Bank’s sole discretion.
   • Historic 6M EIBOR Resets: 
   

   Sr No	6 months EIBOR as on	Value
   1	01-July-2014	0.92%
   2	04-Jan-2015	0.84%
   3	01-July-2015	0.90%
   4	01-Jan-2016	1.22%
   5	03-July-2016	1.33%
   6	02-Jan-2017	1.72%
   7	01-July-2017	1.72%
   8	02-Jan-2018	2.03%
   9	06-May-2018	2.78%

   
   • Revised Variable Rate Option: Effective 01-September-2014, the variable rate offer on new loan disbursals from ADCB is on ‘6 Months EIBOR + Margin’, subject to a floor rates specified in customer’s Mortgage Approval Letters. For those customers that had taken a variable rate option based on RBR – Retail Base Rate (Currently ADCB RBR is at 5%), have a choice to convert it to EIBOR linked variable rates, for a marginal fee. 

   For more information on the current applicable pricing kindly contact ADCB Mortgage Service Desk Unit or alternatively visit one of the ADCB branches, or call our 24-hour Contact Centre on 600 50 2030.

8. Is it mandatory to take a life and property insurance to avail a Mortgage Loan from ADCB?

   Yes, life and property insurance are a mandatory requirement to avail a mortgage from ADCB. As an added convenience, ADCB does offer a competitive life and property insurance to mortgage customers: 

   • Group Life insurance is currently being offered at 0.05% per month on the outstanding loan amount. (Customers may need to undergo medical tests prior to approval of the coverage, as required by the insurance company). 

   • Property insurance is being offered at 0.040% per annum on property’s original value

9. I have an existing life insurance policy. Do I still need to take a policy from the Bank?

   No, you are not required to purchase a life insurance policy from the Bank. Should you be having an existing life insurance policy, you may simply assign the policy to the Bank. For assignment of life insurance policy the Bank may charge an assignment fee.

10. Am I allowed to partially or fully settle my loan at any time?

    Yes, you may partially or fully repay your mortgage loan at any time. However, the Bank may charge a discharge fee each time you are making additional repayments. The current early settlement fee structure is as follows:

    
    

    Early Settlement Fee (%): Partial Payment or Full Settlement of Outstanding Loan
    Applicable for Buyouts/Settlement through Own Funds/Sale of Property		Fixed Rate Term		Variable Rate Term
    Partial Settlement per year of less than 20% of outstanding loan amount		0%		0%
    Partial Settlement per year of more than 20% of outstanding loan amount / Full Early Settlement of Loan		3%		1% (Maximum of AED 10,000)

11. Do I have to transfer my salary or business income to ADCB to avail an ADCB Mortgage?

    No, it is not a mandatory requirement to transfer your income to ADCB. However, the Bank may offer additional benefits to customers who are willing to transfer their income to ADCB such as reduced interest rates, discounts etc.

12. What is the maximum number of years I can take a mortgage for?

    UAE Residents can take a mortgage loan for a maximum period of 25 years, and Non Residents for a maximum period of 15 years. However please note, that at the time of maturity the maximum loan tenor should not cross 65 years of age if salaried, and 70 years of age if self-employed.

13. Can I take an ADCB mortgage loan against any property in the UAE?

    ADCB mortgage loans can be taken only for selected residential properties in the UAE. For more information on the full list of approved projects, kindly visit any of our ADCB Branches or alternatively you may also simply call our Toll free ADCB Contact Centre on 600 50 2030, for one of our dedicated Mortgage Relationship Managers to further assist you with your requirement.

14. How is the interest calculated on my mortgage loan?

    Interest is generated based on your daily loan outstanding balance, in accordance with UAE Central Bank directives. The interest that is levied are recovered on a monthly basis along with your principal repayments as per standard amortization.

15. When do I start making my monthly repayments?

    Your first monthly repayments towards your mortgage loan (EMI) is due one month later from the date of your loan disbursal. Should you have availed a mortgage for an under construction property, then you have a choice of either paying interest only, or the regular EMI during the construction phase. Your first instalment in this case also will be one month from the date of the first disbursal.

16. How can I request details of my existing loan (i.e. outstanding loan amount, current rate of interest applied, and current monthly instalment calculation)?

    You may obtain this information by writing to Customercare.mortgages@adcb.com mentioning your customer ID (Your query will be addressed within 2 to 3 working), or alternatively you may also visit any of our ADCB Branches for our one of our dedicated customer service representative assist you with your requirement.

17. Can I defer my mortgage loan repayment?

    Mortgage Loan repayments cannot be deferred; this is a part of the Bank’s policy

18. What if I am no longer a UAE resident, but I am still holding an ADCB mortgage loan; will the terms of my loan change or will I need to settle my loan?

    You are requested to visit any of our ADCB branches, or contact our 24 hours call centre on 600 50 2030 or alternatively you may also get in touch with our dedicated ADCB Mortgage Service Desk on 04 310 6851, prior to leaving the UAE so that your information can be updated in our system accordingly; the terms of your loan may be amended and will be subject to the approval of the bank on case to case basis (this can be communicated to you post internal review).

19. Can I reschedule my existing mortgage loan?

    Yes, you may do this by submitting fresh financial documents (i.e. Bank statements, income statements etc) and it will be subject to Bank’s approval. A rescheduling fee may apply.

20. What is the procedure for loan settlement?

    You may settle your mortgage loan by depositing the outstanding loan amount along with the settlement fee (which can be found on our schedule of fees at service desk office or on www.adcb.com ) and send an authorization email to Service Desk Unit detailing your requirement for settlement.

21. Which all properties and projects in the UAE approved for mortgage financing by ADCB?

    Please click on the attached list of all approved projects by Emirates: 

    • Dubai 

    • Abu Dhabi

    • Other Emirates