Key Facts: Residential Ready Property Finance ( Download)

Own a place of your own….

Customized to bring customers a host of flexible property finance solutions to suit customer needs. Whether they want to own a ready apartment, villa, or townhouse, buy a piece of land, or invest in a residential property; we at Sharjah Islamic Bank can assist them.

Individuals (Salaried or Self Employed) who are profited in buying residential properties or Investment Real Estate properties but do not have money to pay the developer or seller in lump sum, Banks help these customers to own their dream property by getting the finance and settle/repay the amount in installment on monthly basis.

These properties can be in form of Apartments, Villas, Townhouses, compound villa, or residential land etc. legalized by UAE government and subject to be completed as per evaluation report.

Ijarah: Under the Ijarah transaction, the Bank will purchase the property as requested and promised to be leased by the customer and allow the customer, the bank will lease it to the customer and enable it and enables it to use it and benefit of the property for a predetermined period of time and in return the customer will pay a pre-determined agreed rent. At the end of the finance tenure; property ownership moves to customer name through “Gift Contract”.

Key Finance Features & Benefits:

Minimum monthly income of AED 10,000/- month onwards

Long settlement/repayment tenures, as long as Upto 25 years

Pre-approval concept (conditional approval with minimal documentations)

Fast processing, with quick approval turnaround time

Cater all customer segments (Salaried & Self Employed)

Salaried Applicants:

Individuals, employed in UAE with monthly salary being transferred to SIB or any other Bank in UAE

Minimum Salary: Residential Properties

IndividualsUAE Nationals           Expatriates

Salary transfer to Sharjah Islamic Bank A/C  AED 10,000              AED 12,000

Salary transfer to other Banks A/C              AED 12,000              AED 15,000

Employment Duration:

Customers – working for approved companies with Sharjah Islamic Bank: Min Six Months

Customers – working for non-approved companies with Sharjah Islamic Bank: Min One Year

Self Employed Applicants:

Individuals, with business in the UAE and / or verifiable rental / contractual income in UAE

Minimum Income

From Business:

Average Net Profit: AED 30,000 per month or

15%of the minimum average monthly credit of AED 100,000

From Property Rent:

70%of property rental proven income (income to be supported by lease agreement(s) and copy of lease cheques)

Length of Business: 3 years from the establishment

Finance Tenure: Upto 25 years

Finance to Value (FTV): Residential Properties

Residential Property  UAE Nationals           Expatriates

Finance Amount       Max: AED 50 Mn        Max: AED 50 Mn

Finance to Value       Upto 85%Upto 80%

Key Basic Documentation Requirement: Salaried Applicants

Application form duly singed by customer

Valid UAE National ID and passport showing the residence visa

Current dated Salary certificate

Bank statement for 6 months showing 6 salaries

Documentation Fee: 1% of the approved finance amount

Property documents – Sale Agreement, copy of property Title Deed, completion notice/certificate

Key Basic Documentation Requirement: Self Employed Applicants

Application form duly singed by customer

Valid UAE National ID and passport showing the residence visa

Documentation Fee: 1% of the approved finance amount

Property documents – Sale Agreement, copy of property Title Deed, completion notice/certificate

Applicants with Business Income:

Bank statement for 6 months Personal and / OR Business

Trade License

Copy of Chamber of Commerce Registration

Memorandum & Articles of Association

Financial statements audited of last two years

Applicants with Property Rental Income:

Six Month’s Copy of Personal Bank Statements; showing monthly / annual rental income

Copies of rental income supporting documents; i.e.: lease agreement(s) and lease cheque(s) showing monthly / annual rental income, title deed of the rented property

Current Profit Rates:

Residential Ready Properties: New Purchase &/OR Property/Mortgage Buyout

Segment / Rental Rates

(Reducing p.a.)         Home Finance - Residential Ready Property New Purchase/Buyout

                Fixed Rental Rate      Post Fixed Rental Rate Period Rate

                1 Year      3 Years     5 Years     Variable Rental Rate

(Margin)   Variable Rental Rate

(EIBOR Value)            Min & Max Rate

SIB Salary Transfer     3.75%     3.99%     4.25%     1.75%     3M EIBOR3.99% / 25%

Non-SIB Salary Transfer             3.99%     4.25%     4.49%     1.99%     3M EIBOR4.25% / 25%

Self-employed – All segments     4.25%     4.49%     4.99%     2.25%     3M EIBOR4.50% / 25%

Residential Land: New Purchase &/OR Mortgage Buyout

Segment / Rental Rates (Reducing p.a.)       Land New Finance

                Variable Rental Rate

(Margin)   Variable Rental Rate

(EIBOR Value)            Min & Max Rate

Salaried - SIB Salary Transferred1.75%     6 Months5.00% / 25%

Salaried - SIB Non-Salary Transferred          1.99%     6 Months5.00% / 25%

Self-employed – All segments    2.25%     6 Months5.00% / 25%

The above mentioned profit rates are in effect from 28th  August 2024 onwards  

Fees and Charges:

Ser.          Service     Fees

                Documentation & Study Fees Residential Properties    Upto 1.00% of the approved finance amount

                Early Settlement fee during the Ijarah or Murabaha period

Residential PropertiesEarly Settlement Fee – if Self Payment or Takeover by other Bank:

1.00%of the total outstanding Ijarah OR Murabaha principal amount plus the unpaid and accrued profit amount till the settlement date (with a maximum fee amount of AED 10,000)

Note: No early settlement fee will be applicable for employees of Ministry of Defence (MOD) & GHQ - if the staff chooses to pre-pay the finance facility

                Property Registration Fee          As per the applicable Government charges, paid prior to transferring the title to the Lessee (customer)

                First Degree Mortgage fee and any other additional transfer Fee (if applicable)              As per the applicable Government charges, paid prior to transferring the title to the Lessee (customer)

                Property Takaful Premium         Residential Flat: 0.0176% of the property value; with a minimum policy premium amount of AED 455

Villa: 0.0159% of the property value; with a minimum policy premium amount of AED 455

Property Takaful premium will be charged “annually” and will be will be calculated based on the property value (premium for the first year will only be charged on pro-reta basis only)

                Life Takaful PremiumA Life Takaful fee of 0.0190%  will be charged on the total liability amount (principle + profit) in order to cover the outstanding amount in cases of death or permanent total disability, God forbids.

You will be offered 03 options to choose from as your preferred takaful provider. Please click here for more details available on our website

                Property evaluation fee             Non-refundable valuation fee for conducting the valuation of the property from one of the empaneled valuation company is as follows:

Villa: Upto AED 15,000

Flat: Upto AED 3,500

Land: Upto AED 3,000

Notes:

Above mentioned fees and charges does not include the Value Added Tax (VAT)

Any application or Documentation & Study  fees  or property evaluation fee that have been paid to Sharjah Islamic Bank are non-refundable

Any Fees and Charges (whether demanded or not) will be collected from any of customer account with the Bank

Details of our Fees and Charges are set out on the Schedule of Services and Tariffs which is available on our website: www.sib.ae and we will also inform customers of any charge we make if they request any service

We can change the amount of our Fees and Charges and introduce new or different Fees and Charges to reflect the cost of the work or service involved or for any other reason whatsoever. Customer will therefore need to ensure they refer to the latest schedule of services and tariffs. Where we change the amount of our Fees and Charges, we will provide customers with notice with sufficient time gap as required by law and regulation

Please click here to access the additional terms and conditions

Brief Process and Approval Validity:

On Submission of documents and application, credit pre-approval would be released. On completion of the property evaluation and submission of application for final approval, contract sign-off, property transfer and mortgage, finance disbursement and booking would be completed

Cooling-Off Period: As per Consumer Protection Standards, you have the right to a cooling-off Period of 5 complete business days at time of signing the agreement for the purchase of a financial product or service. However, given the nature of Residential Property Finance, you hereby confirm you chose to waive your right to a cooling-off period irrevocably, and hence your application will be immediately processed on best effort basis.

Upto 90 calendar days to book the finance deal which is “inclusive of 45 days of in-principal approval and 45 days of final approval”

“In-Principal Approval”: Validity will be of 45 calendar days within which customers are requested to complete other documentation requirements and submit the case to Bank for the “Final Approval” assessment and approval

“Final Approval”: Validity will be of 45 calendar days within which customers are requested to complete other documentation requirements and submit the case to Bank for the “contract issuance”

Expired Applications:  If the Retail Real Estate finance application is not booked within 90 calendar days (does not apply on the buyout case and also cases where payment cheque is released and first degree mortgage is completed) then:

Case is to be submitted as a “Fresh Application with the fresh relevant documents” as per the relevant customer type/segment

No refund or adjustments of the fee amount paid earlier will be accepted

Calculation and Charging of Variable Rental

We calculate variable rental on the daily outstanding balance of the Home Finance facility. Variable rental is payable monthly or as approved by the Bank

Variable rental is calculated on the basis of a 360 days calendar year and accrues daily

Fixed Introductory Rental Rate Finance:

Fixed rental rate will apply to the applicable introductory period only

Post introductory period: Mortgage Finance Rate is made up of two components i.e., 3 / 6 Month AED Emirates Interbank Offered Rate (EIBOR) and the SIB Margin with a applicable minimum floor rate

Any changes to the Property/Mortgage Finance Rate will take effect immediately. We will inform customers of the change either by email or by SMS  before the lease period is due for renewal

Any change in EIBOR will have an impact on the rental rate for that review period which may increase or decrease your monthly installments payable to the bank

SIB Margin will be set out in the Agreement and will remain fixed for the duration of the full Settlement/Repayment Period, (or in the case of a Fixed Introductory Profit Rate Finance, for the duration of the Variable Profit Rate Period), unless otherwise agreed between the Bank and customer

Monthly Payments:

Customer must make the Monthly Payments on the dates they are due until they have paid off the whole of the Home Finance outstanding balance. If at the settlement/repayment date or when the Property is sold we do not receive the whole of the Home Finance outstanding balance, customer must pay us the remaining Home Finance outstanding balance.

Bank may vary the amount of the first or any subsequent monthly payment after giving customers with written notice through email or SM:

To take account of any variation in the profit rate (for EIBOR based Home Finances or during the Variable Profit Rate Period of a Fixed Introductory Profit Rate Finance only);

To take account of any additional sums that may become due from customers under the Agreement;

To ensure that the Home Finance outstanding balance is repaid no later than the settlement/repayment date

The finance amount, will be calculated as per the below illustrative example:

Example: Finance amount of AED 1,000,000, Tenure of 25 years, and Profit rate of 2.99% for 1st year reducing and minimum of 5.50% from 2nd year onwards, finance details will be as follows:

Documentation Fee  : AED 10,000

Total Profit amount   : AED 824,548

Monthly Payments (during fixed rate period): AED 4,763

Monthly Payments (after fixed rate period): AED 6,137

Note: Above outlined finance details in the example are for illustrative purpose only and may vary based on customer type, segment, property type and any other factor the Bank deem suitable for as per Bank’s policy

Finance Termination Amount:

Where the lease is terminated during the lease term, the termination amount shall be the aggregate of the following:

Principal (fixed rental) outstanding balance amount

Accrued and unpaid profit (variable rental) amount as of termination date

Any amount on hold representing Sharia approved fee and charges fall due to the bank as per the Ijarah Contract or approved Bank’s Tariff Schedule

Early settlement amount calculated at a percentage of the outstanding balance amount set out in the above Fees and charges section

The finance termination/early settlement amount, will be calculated as per the below illustrative example:

Example: Finance outstanding amount of AED 2,046,153.84 with the settlement date of after 14 days:

Finance outstanding amount      : AED 2,046,153.84

Accrued Un-paid Profit amount: AED 30,351.29

Early Settlement Fee: AED 10,000 (Max amount of AED 10,000 will apply)

Total Amount to Settle: AED 2,086,505.13

Note: Above outlined finance details in the example are for illustrative purpose only and may vary based on the settlement request, date and any other factor the Bank deem suitable for as per Bank’s policy.  You may have to pay an early settlement fee if you pre-settled the financing facility

Warnings:

If you do not keep up your repayments/payments on time then:

You may lose your property and may be repossessed by the Bank

Your account will go into arrears which may affect your credit rating and may limit your ability to access/obtain financing in the future

Your security cheque may be presented for clearing; against the settlement of the unpaid installment amount

In case of default, the Bank will initiate actions including financing collection measures involving collateral securities and claim on guarantees and initiate legal proceedings against you in the competent courts of the UAE

 The finance tenor will remain fixed and will not be altered, even if the installment amount increases or ‎decreases as a result of fluctuations in the profit rates

Disclaimers:

This document is provided for information and illustration purpose only based on customer request. All finances are granted at sole discretion of SIB Standard Terms & Conditions. SIB reserves the right to amend any of the above outlined key facts without any prior notice

Sharjah Islamic Bank does not charge profit on accrued profit on any of its finance credit products granted to its customers

The Bank may also at its absolute discretion change any of the terms and conditions at any time by giving you 60 days prior notice. We may give notice of variations by any means available, including but not limited to email and secure e-message service and by publication on our website (www.sib.ae)

This product has been approved by the Sharjah Islamic Bank’s Internal Sharia Supervision Committee

First Applicant:

Name:                                 

Signature

Date:                                   

Second Applicant:

Name:                                  

Signature

Date: