Home Construction Loans

Build Your Home, Your Way

If you are in possession of land and desire to build your dream home, the Home construction loan option is designed for you. These loans provide funding in phases, aligned with key stages of the building process—such as foundation, framing, and final completion.

This ensures you have the right amount of financial support as per the progress of your project, making it easier to manage both your budget and the timeline.

Construct your ideal home with financing that aligns with your building timeline. Funds are released in stages, ensuring project continuity.

Key Features

  • Funding aligned with construction milestones
  • Flexible repayment terms during and after construction
  • Loan disbursement in tranches

FAQs

What is a home construction loan?
<p>A home construction loan is a financing option provided by banks to help individuals <strong>build a residential property on a plot of land they own</strong>, rather than buying a ready property.</p>
Who is eligible for a construction loan in the UAE?
<p>Construction loans are typically available to:</p> <ul> <li><strong>UAE Nationals</strong> (widely offered)</li> <li><strong>Expatriates</strong> (limited availability, depending on the emirate and bank) Applicants must own the land and meet the income and creditworthiness criteria set by<br /> the bank.</li> </ul>
Do I need to own the land to apply for a construction loan?
<p>Yes. The land title must be <strong>in your name</strong>, and it must be in an <strong>approved area</strong> as per the bank&#8217;s lending policy. A copy of the land title deed is required for approval.</p> <p>Interest rates may be fixed or variable and are generally comparable to standard home loans. However, during the construction phase, some banks charge interest-only payments until<br /> completion.</p>
What is the loan tenure for construction loans?
<p>The tenure can be up to <strong>25 years</strong>, including the construction period (which usually ranges from 12 to 24 months).</p>
Can I include land cost in the construction loan?
<p>Some banks allow the inclusion of land value if the land is unencumbered and was recently<br /> purchased. In most cases, land must be owned outright or financed separately.</p>
What types of properties are eligible?
<p>Typically, only <strong>self-use residential villas</strong> on plots in <strong>approved residential areas</strong> are eligible. Commercial projects and multi-unit buildings are not covered under standard home construction loans.</p>
When do repayments begin?
<p>During construction, you may pay <strong>interest only</strong>, and full <strong>EMIs (principal + interest)</strong> start after project completion and final disbursement.</p>
Can I settle the loan early?
<p>Yes. Early settlement is allowed with a penalty of up to <strong>1% of the outstanding balance</strong>, as per UAE Central Bank guidelines.</p>

Related Services

01. Refinance Mortgages

Refinancing allows property owners to replace their current mortgage with a new one often to secure a lower interest rate, adjust the loan term, or switch to a more suitable mortgage product.

It’s a practical way to reduce monthly payments, save on interest over time, or improve overall loan terms to better match your financial goals.

02. Islamic Home Finance

Islamic home finance is offered by Islamic banks or the Islamic windows of conventional banks, providing an alternative to traditional mortgages. These financing options are structured in a way that avoids charging interest, aligning with Islamic principles that prohibit Riba (usury). The most common structures include Murabaha (cost-plus financing) and Ijara (leasing), both designed to ensure that the financial transactions comply with Sharia law while allowing individuals to purchase houses.

03. Credit Card Services

As an ancillary service, we also arrange for our clients tailored credit card solutions from leading banks to meet their individual and business needs. Our team streamlines the application process, ensures competitive offers, and provides expert guidance to help you choose the right card—whether it’s for rewards, travel, cashback, or corporate use.

With strong banking partnerships and a client-first approach, we make access to financial flexibility simple and efficient.

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