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Key Fact Statement (KFS) – Home Finance
Own the home of your dreams. This KFS provides you with key product features and indicative information about major terms & conditions, fees and charges. Kindly refer to the Facility Offer Letter for the final terms of your finance facility.
| Product Information | |||
|---|---|---|---|
| Product Description | |||
| This product is offered to you for financing any residential and commercial
properties for the below type of transactions: 1. Purchase of ready property 2.Construct your property on a plot 3.Balance transfers of your existing facilities 4.Refinancing your fully owned property 5.Financing home improvement/renovations |
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| Islamic Product Structure | |||
| This product is based on the Shariah concept, Ijarah, whereby the Bank purchases the property from you or a third party and leases it back to you under agreed payment plan. For properties ‘under construction’, the applied Shariah concept is Istisnaa and Ijarah in which Bank finances the construction of the property. Once completed, Bank leases the property back to you under an agreed payment plan.For more details please visit:. For more details please visit: https://www.emiratesislamic.ae/en/general/shariah-certificates | |||
| Finance Currency |
| AED (Arab Emirates Dirham) |
| Maximum Finance Tenor |
| 25 years / 300 months |
| Profit Rate Type |
| Variable Rate Variable & Fixed Rate |
| Profit Rate Method |
| Reducing Balance Method where the Profit amount is accrued on a monthly basis |
| Payment |
| Equated monthly installment (EMI) consists of 3 components: a) Principal portion b) Variable Profit portion c) Supplementary Rental (which includes life and property Takaful as applicable) |
| Variable Profit Rate Structure and Calculation |
| EIBOR (1, 3, 6, 12 month) + Margin = Effective Profit Rate The Variable Rental = (Effective Profit Rate p.a. x the outstanding Fixed Rental x the number of days in that month)/ 365 |
| Variable Profit Rate Benchmark |
| Emirates Interbank Offered Rate (EIBOR) - The variable portion of your installment as applicable under your Home Finance agreement with us, will be calculated by reference to this variable benchmark. Bank will lock in the EIBOR for the renewed Lease Period for frequency of months agreed under the Home Finance agreement (1 - 12 months). |
| Profit Rate (indicative) |
| Benchmark Rate (1/ 3/ 6/ 12 months EIBOR) + Margin ranging from 1.74% to 4.25% p.a. |
| Annual Percentage Rate (APR) (indicative) |
| APR includes applicable profit rate and processing fees expressed as an
annualised rate. Benchmark Rate (1/ 3/ 6/ 12 months EIBOR) + Margin ranging from 1.83% to 4.35% p.a. |
| Sample Illustration along with impact in case of profit rate change (for reference purpose only) | ||||
|---|---|---|---|---|
| SCENARIO 1 | SCENARIO 2 | |||
| Property Value | AED 1,000,000 | AED 1,000,000 | ||
| Down Payment | AED 200,000 (20% of the total property value) | AED 200,000 (20% of the total property value) | ||
| Finance Amount | AED 800,000 | AED 800,000 | ||
| Profit Rate (indicative) | 3.25% (3-month EIBOR @ 0.75% + Margin @ 2.50%) | 3.75% (3-month EIBOR @ 1.25% + Margin @ 2.50%) | ||
| Annual Percentage | 3.348% APR calculated based on profit rate of 3.25% p.a. processing fee of 1.05% for 25 years | 3.850% APR calculated based on profit rate of 3.75% p.a., processing fee of 1.05% for 25 years. | ||
| Finance Tenor | 300 months (maximum) | 300 months (maximum) | ||
| Total Payment Amount | AED 1,169,559 (Total amount paid over the entire tenor of the finance) | AED 1,233,915 (Total amount paid over the entire tenor of the finance) | ||
| Total Profit Amount | AED 369,559 (Total profit amount paid during entire tenor) | AED 433,915 (Total profit amount paid during entire tenor) | ||
| EMI (indicative) | AED 3,899 (EMI stated is indicative for the total lease period excluding takaful contribution) | AED 4,113 (EMI stated is indicative for the total lease period excluding takaful contribution) | ||
| Warning | |||
|---|---|---|---|
| Based on the change in the applicable profit rate, due to change in EIBOR during the variable pricing period, the installment may increase / decrease in the following rental period(s). This profit and outstanding amount computation will get revised based on the new applicable rate accordingly | |||
| There will be no change to the original tenor of the finance in case of change in profit rate | |||
| *Fees & Charges | |||
|---|---|---|---|
| Processing Fees | |||
| 1. 1.05% of the Finance amount 2. For Buyout with Equity Release 1.05% of the equity release amount |
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| Late Payment Fee (Obligated amount to charity) | |||
| AED 735 per installment** | |||
| Partial & Early Settlement | |||
| 1.05% of amount paid or 10,500 (whichever is less) In case the fee calculated is more than AED 10,000, then AED 10,000 will be charged from the customer + Value Added Tax (VAT) of 5% | |||
| Third-Party | |||
| Government Fees - As per the fee tariff of government authorities of respective Emirate of UAE for Registration, Mortgage, Mortgage Release, etc. | |||
| Illustration on Early Settlement | |||
|---|---|---|---|
| Principal Outstanding | 100,000 | ||
| Early Settlement fee 1.05% on Principal Outstanding | 1,050 | ||
| Illustration on Partial Settlement* | |||
|---|---|---|---|
| Principal Outstanding | 100,000 | ||
| Partial Settlement Amount | 10,000 | ||
| Fee @1.05% on Partial Settlement Amount | 105 | ||
*Any unpaid dues such as installment, fees, charges, and accrued profit will be collected first (from the amount being settled).
| Additional Information | |||
|---|---|---|---|
| Bank may debit your accounts with any charges, expenses, or commission payable against the banking services rendered in accordance with the approved and announced banking charges and commissions as notified to you from time to time. | |||
| Bank may from time to time, and at its sole discretion, change or amend the Bank’s General Terms and Conditions for Consumer Banking Services (including any relevant applications and documents and other Special Features) by notice to you in accordance with applicable law. | |||
| The finance amount you are eligible for and the profit rate / fees & charges applicable may differ from the sample illustration as shown above. This will depend on your credit profile, special terms offered (like Government Sponsored Housing Schemes etc.), and affordability assessment done by the Bank. | |||
| In case of a First Payment Date grace period, or a deferment of Instalment/ EMI, the profit accrued during the deferred period will be apportioned towards remaining Finance tenor/Lease Term. Also, each deferred Installment/ EMI will reflect as an increase in the total Finance Tenor / Lease Term with additional months of payment. | |||
| You are responsible for selecting the property. In case of self-constructed property, you are obligated to deliver the property within the timelines agreed as per contract and ensure the delivery is as per the specifications of the plan of construction. | |||
| The facility is subject to title registration / mortgaging the property as collateral in favour of the Bank. Additionally, the Bank reserves the right to request for security/ conditions (including but are not limited) to security cheques, guarantor, co-signer, salary transfer, etc. | |||
| You will be responsible to maintain the property. If the financed property is damaged as a result of misconduct or negligence, you are obliged to bear the costs of restoration / repair. | |||
| The cooling-off period allows you to cancel the product within five (5) business days of signing the application or offer letter and the Bank will not be able to proceed until this period expires, unless you waive this right. To cancel within this period, you must give the Bank notice. | |||
| You can contact the Bank for any enquiries, assistance or complaints at any of its branches or by visiting its website https://www.emiratesislamic.ae/ | |||
| Warning | |||
|---|---|---|---|
| Profit Rate applicable to each Lease Period may vary depending on movements in the Benchmark Rate (EIBOR). | |||
| When you refinance or avail instalment deferments, it may take longer to pay off your finance and cost you more. | |||
| If you prepay your finance early payment fees may apply | |||
| If you do not meet the payments on your finance, on time and in full, your account will go into arrears. This may affect your credit rating and may limit your ability to access financing in future. | |||
| If you do not meet the payments on your finance, you may lose your property. | |||
| In case you fail to fulfil your obligations as per the product Terms and Conditions, before and during your relationship with us, there will be consequences including, but not limited to penalties. | |||
| You are required to provide the Bank with copies of your updated documents at all times (Emirates ID, Passport, Visa, Trade License, etc.). Not providing these documents might result in charges, transactions being restricted, account being blocked, or account being closed. | |||
| Important link | |||
| For Key Fact Statement and other important information visit (https://www.emiratesislamic.ae/en/key-information/) | |||
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