Home Finance FAQ

1. What are the projects approved by FH
Ans: Villas and apartments by reputed developers located in Dubai and Abu Dhabi are approved by FH

2. Are self employed people eligible for Home Finance from Finance House?
Ans: No

3. What kind of documentation is required for getting home Finance from FH?
Ans: The following documentation is required
         a)    Original passport & photocopy thereof (with valid UAE residence visa for expats)
         b)    Latest 6 months’ bank statements of account into which salary is transferred
         c)    Current dated salary certificate from employer addressed to Finance House
         d)    Original Sales Agreement with the developer
         e)    Proof of down payment made to developer
          f)    Post dated cheques for repayment and security cheque for Principal+Interest.

4. Whether you have fixed rate and floating rate
Ans: We have very competitive interest rates, however at this point of time the minimum interest rate is 10 %

5. How much % of the cost will be financed and up to what tenor?
Ans: The % cost that can be financed by FH will vary from developer to developer.
        a)    The minimum financing amount will be AED 200K and the maximum will be 2.5 Million.
        b)    The maximum loan tenor would be 20 years subject to customer age at 60 yrs at the  time of loan maturity.

6. What about the cost for life insurance and property insurance?
Ans: Property and Life Insurance will be done by FH at very competitive rates

7. Whether an existing life insurance policy holder can assign the same to FH instead of going for a fresh life insurance
Ans: Yes

8. How fast we can get the approval and is there any processing fee?
Ans: Once all the required documents are submitted, it will take up to 4 business days for a credit approval. Loan processing fee is 1% of loan amount with minimum of AED 3,000

9. Can I start paying the EMI (principal+ interest) even before occupying the property or what are the options available?
Ans: In your interest we have planned the ‘Interest only serving’ facility and under this facility, customers will pay only the interest during the construction period.

10. Is there any pre-closer charges and if yes, at what rate and how is calculated?
Ans: The fore-closer fee is 2% of the amount pre-paid in case the pre-payment is made with customer’s own funds and 5% in case it is re-financed.

11. How many cheques need to be given upfront?
Ans: At the time of the initial loan sign-up, customer need to provide 25 cheques which will include, repayment cheques, processing fee cheque, cheque for life insurance (if any).

12. Is there any option for top-up or redrawing?
Ans: No

13. What will be the due date and what you will charge if payment is not made on the date?
Ans: Payment due date will be usually end of each month. Yes there is a penalty of 3% incase of any overdue payment

14. Can I make a lump sum payment at any point during the loan tenor?
Ans: In case the early settlement is being done from own resources then a charge of 2% will be levied on the outstanding loan. In case of loan buy-out by other financial institution then 5% will be charged on the outstanding balance.

15. If the property registered/booked on joint name, do we need to sign the loan agreement jointly?
Ans: Yes. If the property is in joint account names both parties will have to sign all the borrowing documents.

16. Can I sell or transfer the property at a later stage?
Ans: At present, financing is available for first hand residential properties only and when we start lending for second-hand purchases, the transfer of property will be possible subject to meeting FH eligibility criteria by the transferee.

17. What if I forced to leave the country for any reason (job lost cases etc.) and what will happen for my loan?
Ans: The loan needs to be settled with own funds or transfer the finance to a new buyer subject to FH eligibility. In case, both the options are not possible, then FH will assign its right on the property to sell it off and balance money will be refunded to the customer and in case if anything payable to FH, the customer should make and get the clearance from FH.

18. Can I make EMI for pre-construction period?
Ans: We made it convenient and easier for the customers as they need to pay only the interest during construction period and EMIs after the delivery

For more details call 80034