Central Bank of the UAE scheme for retail residential Islamic home finance
Warning
- If you do not keep up with your payments, you will be committed to pay a donation amount based on the bank’s request (if any) and legal action may be taken if you fail to respond to any reminder notices issued
- Your property may be foreclosed upon, and you will have to bear all related costs. You will also be responsible for settling any shortfall after your property is sold
- Any legal action against you may affect your credit rating, which may limit your ability to access financing and make it more difficult or more expensive to access financing in the future
- You may have to pay applicable early settlement charges if you settle the full financing early
The Central Bank of the UAE has implemented measures to help to alleviate the impact of increased profit rates on residential Islamic home finance (non-investment properties) for qualifying UAE Nationals.
The measures cover
- Home Finance Facility with increased finance burden ratios (FBRs) where banks have not postponed any of the profit until after the payment (non-balloon payment)
- Home Finance Facility with non-increased FBRs where banks have postponed the profit incurred as a result of the higher profit rates (balloon payment)
Eligibility Criteria
- Existing residential scheme Islamic home finance booked before 1 July 2023
- No additional material facilities or (Islamic or conventional) finance provided by other parties after the origination of the Islamic home finance
- Not applicable for customers currently under a fixed profit rate period
- Customer experiencing payment difficulties
Grace Period
Not applicable
EMI Deferral
Not allowed
Restructuring Fees
None
Additional Finance after Restructuring
No additional Islamic finance facility will be available to the customer until the Islamic home finance facility is paid in full.
Consent
The customer’s written consent is required.
Conditions apply.
