When you are thinking about buying a home, you need to consider various costs. Financing/Borrowing Cost refers to the fees and charges associated with obtaining a home loan from a Financial Institution. Other Costs include (but not limited to) brokerage/consultation fees, developer charges, land registration charges, property management fees, property maintenance fees etc.
Here is a list of some of the fees that may apply to your FAB home loan:
- Approval in Principal Fee: (To obtain mortgage pre-approval based on your income assessment even before you select any property) AED 525*
*Approval in principal fee is AED 0 during the current campaign period
- Valuation Fee: (Property Valuation Fee to assess the estimated market value of property to be financed) starting from AED 3,000/- depending on nature of property + VAT
- Processing Fee*: (After Mortgage Approval, prior to releasing the funds) Reduced processing fee: 0.5% of approved finance + VAT
*In case you shift your mortgage from another Financial Institution within UAE to FAB) the processing fee is waived along with reimbursement of Property Valuation Fee (up to AED 3,000/-) & Early Settlement Fee at settling Bank (up to AED 10,000/-).
- Life Insurance Fee: (For entire duration of Mortgage): 0.0112% calculated per month on outstanding loan amount.
- Property Insurance Fee: (For entire duration of Mortgage): 0.05% + VAT calculated on property value, paid upfront on pro-rata basis followed by annual payment.
for detailed information on FAB Home Loan fees and charges.