In a conventional mortgage, the customer repays the loan with an added interest charged by the bank. In contrast, Islamic Home Finance adheres to sharia principles, where interest (riba) is prohibited. The bank purchases the property on the customer’s behalf and leases it to the customer, with rent determined for each lease renewal period.

SIB Islamic Home Finance is based on ijarah principles. Under this arrangement, the bank purchases the property and leases it to the customer for an agreed rent, which is subject to change during each lease renewal period.

Yes, SIB Home Finance is available to all customer segments, including individuals of any nationality and religion, whether salaried or self-employed.

Eligibility varies based on the customer’s profile. Visit SIB general terms & conditions for detailed eligibility information based on customer segments and property types.

Failure to make payments may result in:

Your account going into arrears, potentially affecting your credit rating and limiting future financing opportunities. Loss of your property, which may be repossessed by the bank.

Yes, both property and life takaful are mandatory for the duration of the finance and must remain valid until the finance is fully settled.

Yes, early settlement is permitted, subject to a fee as per the bank’s prevailing charges.

SIB offers finance for:
Ready residential properties (villas, townhouses, or apartments)
Residential and non-residential land
Office spaces (serviced offices)
Retail spaces (shops or retail stores)

SIB Home Finance is offered at a reducing profit rate.
Flat rate: the profit rate remains constant throughout the finance term and is calculated on the original principal amount.
Reducing rate: the profit is calculated on the outstanding balance, which decreases as settlement/repayments are made.
Reducing rates typically reflect the actual cost of finance more accurately than flat rates, even if the advertised flat rate appears lower.

The deposit requirement depends on the customer’s nationality, property type, and value:
Residential property:
UAE nationals:
First house/owner occupier:
Property ≤ AED 5 million: minimum 15%
Property > AED 5 million: minimum 25%
Second/subsequent houses or investment property: minimum 35%
Expatriates:
First house/owner occupier:
Property ≤ AED 5 million: minimum 20%
Property > AED 5 million: minimum 30%
Second/subsequent houses or investment property: minimum 40%
Non-residential property:
New purchase:
UAE nationals: up to 35%
Expatriates: up to 40%
Equity release (ready non-residential property):
UAE nationals: up to 40%
Expatriates: up to 45%
Equity release (non-residential land):
All nationalities: up to 50%