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Home Finance

Home Finance from Mashreq Al Islami brings you a Sharia'h compliant offering that is convenient and beneficial in all aspects. With our high finance amounts, facility tenor of up to 25 years, attractive profit rates and quick turnarounds it makes the process of financing your dream home as smooth as possible. Our experienced home finance representatives will visit you at your convenience, to provide a detailed walkthrough of the application process.



Benefits

  • Sharia'h Compliant Offering
  • High finance amounts up to AED 15 Million
  • Facility tenor of up to 25 years
  • Attractive profit rates
  • Nominal processing fees and charges
  • Quick Turnaround
  • Extended to both salaried and self employed
  • Pre-approval facility to identify finance eligibility
  • Available for Ready Properties
  • Dedicated Home Finance Relationship Officer for your finance requirements
  • Transparency at all times

To arrange an appointment with our Home Finance Relationship Officer, please call us on 04-4244411 or visit us at any Mashreq Bank branches.



How It Works

Home Finance from Mashreq Al Islami is based on the concept of Ijara (lease based financing). Under the Ijara arrangement, Mashreq Al Islami will buy the property and lease it to you for your use. This is a lease contract wherein Mashreq Al Islami as the Lessor, shall lease the property to you as the Lessee, in return for rental payments for a specified term.



FAQs

Why should I choose Ijara Home Finance from Mashreq Al Islami over home finance from other banks / financial institutions?

  • Shariah Compliant
  • High finance amounts
  • Facility tenor of up to 25 years
  • Attractive profit rates
  • Nominal processing fees and charges
  • Quick Turnaround
  • Extended to both salaried and self employed
  • Pre-approval facility to identify finance eligibility
  • Available for Ready Properties
  • Dedicated Home Finance Relationship Officer for your finance requirements Transparency at all times
  • Transparency at all times

Who can apply for a home finance?
UAE Nationals and Resident Expatriates.

Is the Ijara Home Finance available to non Muslims?
Yes, Ijara Home Finance is also available to non Muslims.

Why Islamic Home Finance?
Ijara Home Finance offers a Shariah complaint offering, vetted by the Shariah Supervisory Board and is fully transparent with no hidden charges.

What is the maximum home finance tenor?
Up to 25 years.

Who will process my home finance?
Our Home Finance Relationship Officer will visit your home/office to complete the formalities.

How long will it take to get my home finance approved?
Within 7-10 working days subject to submission of all the required documents.

How is my home finance application evaluated?
Your application will be evaluated on the following criteria:

  • Your income stream
  • Your employment history and stability
  • Your ability to handle current obligations as well as new ones
  • The value of the property being purchased Your assets to assess your ability to meet your down payment

Do you cover re-sale transactions?
Yes, there are two types of transactions:

  1. Full Payment
    Full payments mean that the first purchaser has made 100% payments to the developer and is selling the property. Here the payments would be made to the first purchaser.
  2. Part Payment*
    Part payments mean that the first purchaser has only paid the down payment and the balance is yet to be made to the developer. Here, the down payment would need to be paid by you to the seller and the balance be made to the developer.

    * currently applicable to completed properties in Dubai, ready for handover.

What is a pre approval?
A pre-approval would help you determine your eligibility for a home finance before you decide to finalize a property.

Do you require insurance?
Yes, both Takaful Life Insurance and Property Insurance are mandatory before disbursing the facility amount. It is mandatory that both the insurances should be availed from Salama Islamic Arab Insurance Co. (P.S.C.).
Takaful Life Insurance: Life insurance is mandatory from Dubai Islamic Insurance and Reinsurance Company (Aman) (FOR T&C’s click here) . Customers with existing life insurance policies through Dubai Islamic Insurance and Reinsurance Company (Aman) have the option to assign* the policy to Mashreq Al Islami provided that it meets the following criteria:

  • Policy is more than six months old
  • Policy covers the finance amount
  • Policy covers the tenure of the facility including the construction period
  • Policy is active and insurance contribution / premium is paid up to date
* Assignment fees will be applicable to assign existing insurance policies.
Property Insurance: The Property Insurance premium is calculated on the cost of the property and is available only through Salama Islamic Arab Insurance Co. (P.S.C.). The amount of the insurance contribution / premium will be debited from your account prior to the final disbursal and each year thereafter.

Is it mandatory to register the property with the Lands Department, Government of Dubai?
Yes, the Lands Department of the Government of Dubai has mandated registration of Ijara and sales for all properties in designated areas of Dubai. As a result, it is now essential for the properties to be registered with the department. The properties need to be registered in the name of Mashreq Al Islami Finance Company PJSC.

What are the documents needed for the Ijara Home Finance?
Salaried

  • Application form
  • Passport copy with valid UAE residence visa
  • Salary Certificate addressed to Mashreq Al Islami Finance Company PJSC
  • Last six months’ original bank statements
  • Liability letter from the bank addressed to Mashreq Al Islami Finance Company PJSC
  • Photocopy of purchase contract
  • Photocopy of down payment receipt
Self-employed
  • Application form
  • Passport copy with valid UAE residence visa (residents only)
  • Last six months’ bank statements – personal and company
  • Liability letter from the bank addressed to Mashreq Al Islami Finance Company PJSC
  • Memorandum and Articles of Association
  • Audited financial statements of last 2 years
  • Board resolution copy
  • Trade license copy
  • Business profile on company letterhead
  • Photocopy of purchase contract
  • Photocopy of down payment receipt
* Additional documents may be required on a case-to-case basis.

Do I need to submit all the property documents in original?
Yes, we will be the custodians of original property documents. After the finance settlement in full, a no-liability letter certificate and all relevant documents will be handed back to you.

Do I need to give security cheque?
Yes, this acts as security for Mashreq Al Islami Finance Company PJSC in case of non-payment of dues.

Do I need to transfer my salary to Mashreq Al-Islami?
A Mortgage is one of the biggest investments for an individual and we sincerely advise our salaried customers to transfer salaries to Mashreq, thereby ensuring peace of mind, however salary transfer to Mashreq is not mandatory.

How does Mashreq Al Islami Finance Company PJSC communicate the approval?
Our Relationship Officer will inform you about the status of the application. An offer letter will be given to you on approval. You need to accept the offer within 30 days of issuance. The offer letter is valid for a period of 60 days to allow you to complete the fixed formalities.

Do all applicants of home finance have to be co-lessees to the facility?
Yes, all applicants of the property need to be co-lessees.

Does the repayment account need to be in joint names?
Yes, the repayment account needs to be a Joint or/and Account.

Can the income of more than one person be considered for eligibility calculations of home finance?
Yes income of more than one person can be considered for calculation of eligibility of home finance, however all co-applicants, whose income will be considered, will have to be co-lessees to the facility. The co-applicants are subject to acceptance by Mashreq Al Islami Finance Company PJSC.

How do I make monthly payments?
You are required to open a current account with Mashreq Al-Islami, where your monthly payments would be recovered from.

When will you start my monthly rentals?
The monthly rentals will commence only after the final payment is made to the developer/seller. For example, if the final payment is completed in Dec 2009, only thereafter the monthly rentals will begin.

DISCLAIMER
Conditions Apply: Family Takaful cover is provided by renowned Takaful Operator(s). All product features, benefits, returns are offered by the Takaful Operator in accordance with plan terms and conditions and not by Mashreq Al Islami . Mashreq Al Islami shall not be responsible for Takaful Operator’s actions or decisions nor shall Mashreq Al Islami be liable regarding payment of claims or services under the contract



Home Finance Terms

Amortization - Schedule depicting regular payment of rentals (constituting fixed and variable rental) towards home finance

Debt-To-Income-Ratio - The ratio of aggregate monthly debt to aggregate monthly income

Mashreq Prime Rate (MPR) - MPR is the base rate maintained and published periodically by Mashreq Bank. The frequency of change in the MPR is dependent on market fluctuations and is regularly communicated to the public through press releases and advertisements in leading newspapers, published on Mashreq Bank’s website (www.mashreqbank.com). MPR is used for the purpose of determining the rental payments only.

Finance-To-Value (FTV) Ratio - The relationship between the amount of the finance and the appraised value of the property expressed as a percentage. An FTV ratio of 70 means that an applicant can avail finance up to 70% of the value of the property and shall pay 30% as down payment.

Ijara - "Ijara" is a term of Islamic Fiqh. Lexically, it means 'to give something on rent'. In the Islamic jurisprudence, Ijara relates to the usufructs of assets and properties, and in this sense means 'to transfer the usufruct of a particular property to another person in exchange for a rent claimed from him.' In this case, the term 'Ijara' is analogous to the English term 'leasing'.

Processing Fee - The fee imposed by the financer to cover certain processing expenses in connection with the booking of the finance

Pre-approval - A term used to mean that an applicant has completed a finance application and provided debt, income and savings information that has been reviewed and pre-approved by an underwriter.

Purchase Agreement - A written contract signed by the buyer and the seller stating the terms and conditions under which a property will be sold.

Rental Payments - The monthly Rental Payments payable to the Lessor by the Lessee is calculated as the aggregate of the Fixed Rental and the Variable Rental.

Takaful - Takaful is Islamic insurance which works on the concept of donation. The policy owners mutually agree to help each other should anything untoward happen to any other policy owner. The major difference between Takaful and conventional insurance is that Takaful products are Sharia'h compliant and abide by the teachings of Islam.

Schedule of Charges

Property Takaful Terms and Conditions