First Abu Dhabi Bank mortgage (FAB mortgage): full guide
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.
Funding of properties on all Emirates
No salary transfer
Bank valuation fee: AED 3,150
No additional bank arrangement fee
Bank valuation fee: AED 3,150
Partial settlement payment fees during fixed rate
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:
Variable-rate offers:
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:
Down payment from:
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:
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