Apply for a Home Loan Top Up in UAE: A Step-by-Step Guide

A home loan top up is a service for individuals who already have a home loan and need extra money. This additional cash can be used for things like renovating the house, buying new furniture, or even expanding the home. Borrowers can access this Home Loan Top Up in UAE without needing to provide extra collateral. Usually, the interest rates for these top ups are low and match the term of the original mortgage. In the UAE, home loan interest rates can start as low as 2.5%. The rate of interest for a top up mainly relies on how much is already owed on the original loan. 

This guide will provide key information about home loan top ups, including the best interest rates available in the UAE. 

What is a Top Up Loan?

Top up home loans in the UAE are the added amount in the existing home loans, offered by the existing home loan borrowers. Several financial institutions have their terms and conditions for the top up loans which depicts that the amount borrowed should only be utilized for the purposes in regard to home, which is the primary reason of the borrowing. However, some financial institutions might not impose such restrictions on the borrowers. 

Advantages of Home Loan Top Up

The benefits of a home loan top up loan in the UAE include:

• Reduced Interest Rates: Home loan top ups usually possess low interests rates in contrast to personal loan amounts or several other kinds of unsecured loans. This is possible because the top up is secured against the property. Thus, such loan against property in UAE makes it less challenging for the loan provider. 

• Easy Approval: Acquiring a home loan is comparitevy quicker and more simplified process than applying for a fresh one. Due to the existing collaboration of borrower and lender, the approval becomes convenient. 

• Flexible Usage: Borrowers can utilize the top up amount for several purposes like renovating house, educational costs, medical expenses, and other financial needs. Therefore, it offers flexibility of usage. 

• Extended Loan Duration: The duration of repaying the home loan top up is usually aligned with the existing duration of the home loan. This results in reduced EMIs as compared to other types of loans. 

• No Restriction on Usage: A home loan top up allows you to use the money for any purpose, unlike some loans that have specific restrictions. This gives borrowers the freedom to address various financial needs.

Eligibility Criteria for Home Loan Top Up in the UAE

To qualify for a home loan top up in the UAE, there are some basic requirements:

• Ongoing Home Loan: You must have an active home loan with the same bank.

• Minimum Salary: Your monthly income should be at least AED 5,000 if employed by an approved company, or AED 10,000 if not approved.

• Employment Status: You need to be a confirmed employee or have worked for your current employer for at least six months.

General Requirements

• Residency: You should be a UAE national or resident. 

• Age: You should be between 21 and 65 years old.

• Income: Your minimum monthly income should be at least AED 7,500.

These criteria might differ slightly between banks, so it’s wise to check with your specific bank in Dubai to ensure you meet all requirements.

How to Apply for a Home Loan Top Up in UAE?

You can apply for a home loan top up in several ways. Home Loan Top Up Process in UAE includes the following steps:

• Online Application: Visit your bank’s official website for a quick online application process.

• Offline Application: Go to the bank branch where you have your existing loan. This method is simple but may be time-consuming. 

• Third-Party Platforms: Look for platforms that offer competitive interest rates and efficient processing.

Important Considerations When Getting a Home Loan Top Up in the UAE

Before committing to a home loan top up, keep these important factors in mind:

• Interest Rate Comparison: Check and compare interest rates from your bank and others. If personal loan rates are lower, a personal loan might be a better option.

• Home Loan Refinancing Options: Investigate refinancing opportunities with banks that offer lower rates, which could save you money.

• Top Up Limits: Know the maximum amount you can top up and the interest rates involved. Some banks may keep the same rates as your original loan, and others may charge more.

• Prepayment Flexibility: Look for options to pay off the loan early without extra charges.

Conclusion 

A home loan top up is one of the best ways to handle the additional costs related to  your home. You can avail such loans from best home loan providers in UAE without having to present any collateral or security. 

Additionally, if you are in search of an affordable home loan in the UAE, simple head to Taskmaster Gulf. Our experts will provide you adequate guidance on this matter and are always there to assist you to get the most apt home loans, top ups, and other products at the best prices with the most suitable interest rates.

Also read – What Is Value Added Tax (VAT) and How Does VAT Function ?