Deals of the Week: New loan aimed at 'dream home' customers

Emirates Islamic Bank's Bina home finance solution offers 100 per cent loans, while Emirates NBD also announced an expansion of its home loan portfolio.

EIB's Bina home finance deal for Emirati customers is the only mortgage product of its kind in the UAE. Pawan Singh / The National

Emirates Islamic Bank (EIB) has opened up the nation's mortgage market by introducing 100 per cent home loans for Emiratis.

The Bina'a home finance solution is the only mortgage product currently on offer in the UAE that fully covers the financing of a new home. The Sharia-compliant deal comes with a variable rate starting from 4.99 per cent and pre-approval within 24 hours.

Emirati customers also have the option of a five-year fixed rate starting from 5.99 per cent and can apply for a loan for completed properties as well as new developments.

"The Bina'a solution was developed specifically to address the needs of Emiratis who aspire to owning their dream home," says Faisal Aqil, the general manager of retail banking for EIB.

"The mortgage loans are simple and hassle-free, which only leaves customers with deciding which property to buy or [the] location to build their perfect home."

Bina'a, which is Arabic for "to build", also includes benefits such as no processing fee for buyouts, a 60-day instalment deferment and a cash-release option from completed properties.

For more information, go to www.emiratesislamicbank.ae.

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Mortgages are certainly the flavour of the moment, with Emirates NBD (ENBD) also announcing an expansion of its home loan portfolio. The nation's biggest bank by assets announced this week it is now offering home loans to expatriates living in the UAE as well as Emiratis.

Available for a limited period only, the package includes interest rates from 4.49 per cent and the option to fix rates and instalments for up to seven years. The deal also comes with a 50 per cent discount on processing fees, a free property valuation and free life, property and home contents insurance for the first year.

"With the stabilisation of the residential freehold property market and the growth in the economy, more and more expatriates are looking to buy a property," says Shekhar Krishnamurthy, the head of retail assets and liabilities at ENBD. "This special offer on mortgage loans for expatriates has been developed in response to the evolving needs of our customers and will offer them a variety of convenient home financing solutions to choose from."

Employed and self-employed expats can borrow up to 85 per cent of the property value with this offer and those with existing mortgage deals can transfer. Those wishing to raise some cash can also apply for the bank's Loan Against Property option.

Go to www.emiratesnbd.com for details.