Housing Construction Loan

The Home Construction Loan aims to enable UAE nationals to build a suitable residential home on land they own or have been granted, by providing a loan of up to AED 1,750,000, repayable in monthly installments in accordance with the regulations set by the Authority. This loan supports family stability and housing security through clearly defined eligibility criteria and conditions.

Key Points and Conditions:

First: Loan Amount and Repayment Mechanism

• A home construction loan of up to AED 1,750,000

• Repayment through monthly installments as determined by the Authority

Second: General Eligibility Conditions

• The applicant must be a UAE national and legally competent.

• Continuous residence within the UAE.

• The applicant or their spouse must not have previously benefited from any housing loan or housing grant from any federal or local government entity, except for housing loans obtained by the wife prior to marriage.

• Ownership of a residential plot registered in the applicant’s name, free of any legal impediments to construction or disposal, and with all required infrastructure available at the time of loan approval.

• The application must be submitted individually, unless the land is jointly owned.

• Low-income applicants must commit to repaying remaining installments once their financial capacity improves.

• The applicant must provide, upon request, proof of their ability to cover any additional construction costs exceeding the approved loan amount.

• The applicant must pledge the entire residential land as a first-degree mortgage in favor of the Authority until full loan repayment, with the mortgage officially registered prior to loan activation.

• The Authority reserves the right to request a financially solvent guarantor if deemed necessary.

Third: Special Conditions by Eligible Categories

• Male applicants: Must be at least 25 years old.

• Widows: Must be guardians or providers for one or more children. Non-national widows must have resided continuously in the UAE for at least 5 years prior to application.

• Unmarried female nationals: Must be at least 30 years old and have no provider capable of securing housing, or be responsible for housing relatives up to the second degree.

• Divorced female nationals: Must be at least 30 years old; the divorce must be irrevocable or at least three years must have passed since the divorce, and generally be guardians or providers for children.

• Female nationals married to non-nationals: Must be at least 30 years old, have one or more children residing with them, prove continuous residence in the UAE for at least 7 years, and demonstrate the husband’s inability to provide suitable housing. The non-national husband must submit a written undertaking not to apply for any housing loan in the event he later acquires UAE nationality.

Fourth: Utilization Regulations

• The Authority may cancel the loan approval if the loan is not activated without a valid emergency reason beyond the beneficiary’s control.

• In case of cancellation, the beneficiary may not submit a new loan application for two years from the cancellation date.

• Loan approval may also be cancelled if construction does not commence within three years from the date of loan approval.
  
   

   

  
  
   

  The official text issued by the competent authorities:

   

  
  Housing Construction Loan:

  It allows a UAE national to borrow a specific amount of AED 1,750,000 (One million seven hundred fifty thousand dirhams) to build a housing on a residential plot of land that he/she owns or that has been granted to him/her. The loan is repaid in monthly installments in accordance with the controls determined by Abu Dhabi Housing Authority.
  
   

General Conditions for Eligibility for Housing Construction Loan:

1. The applicant shall be UAE national.

2. The applicant shall be of sound mind.

3. The applicant shall be a permanent resident of the UAE.

4. Neither the applicant nor his spouse has benefitted from any housing loans or housing grants from any government entity, whether federal or local, except for housing loans received by the wife before marriage.

5. The applicant shall own residential plot of land in the emirate, registered in his name, free from any legal impediments to construction or disposal, and equipped with all necessary infrastructure at the time of approval on the loan.

6. He /She shall be a sole applicant, unless the residential plot of land is jointly owned.

7. The UAE national with limited income shall undertake to repay the remaining installments when he/she becomes solvent.

8. The applicant shall undertake, upon request, to provide evidence proving that he/she can provide the additional funds required to complete the construction works, whose value exceeds the amount of the loan granted by Abu Dhabi Housing Authority. Neither the consultant is assigned nor the project is awarded before these guarantees are provided.

9. The applicant shall undertake to mortgage the entire plot of land owned by him/her or granted to him/her as a first-degree mortgage in favor of Abu Dhabi Housing Authority until the loan is repaid. The mortgage shall be officially registered in accordance with the applicable legal provisions in this regard before the loan is activated. As well as all disposals shall be recorded in the real estate register kept by the competent authority in the emirate.

10. Abu Dhabi Housing Authority may request the applicant or the beneficiary to provide a financially solvent guarantor, in coordination with the entity designated to manage the housing loan.

Special Conditions according to Categories Eligible to Housing Construction Loan:

Males:

He shall have completed twenty-five (25) years of age.

Widows:

She shall be the custodian or provider of one or more children.

A widow, whose dead husband is non-UAE national, shall have resided continuously in the United Arab Emirates for a period of no less than (5) consecutive years prior to the date on which the application is submitted.

Unmarried Female UAE Nationals:

She shall be at least thirty (30) years of age.

She shall not have a breadwinner, or her breadwinner is unable to provide a housing for permanent reasons, or it is impossible to legally obligate her breadwinner to provide a housing, or she is the provider of housing to her relatives up to the second degree.

Divorcée:

She shall be at least thirty (30) years of age.

She has been irrevocably divorced with major separation or has been divorced for three years.

She shall be the custodian or provider of one or more children. Elderly divorcées or divorcées who are unable to bear children are exempted from this requirement, by virtue of a medical report issued by the competent authority.

A woman divorced from a non-UAE national shall have resided continuously in the United Arab Emirates for a period of no less than (5) consecutive years prior to the date on which the application is submitted.

Female UAE Nationals married to Non-UAE Nationals:

She shall be at least thirty (30) years of age.

She shall have one or more children living with her. Elderly women or women who are unable to bear children are exempted from this requirement, by virtue of a medical report issued by the competent authority.

She shall prove that she has resided continuously with her husband and children in the United Arab Emirates for a period of no less than (7) consecutive years prior to the date on which the application is submitted.

The father of the children' shall be unable to provide a suitable housing.

The non-UAE husband shall declare and undertake not to claim or apply for any housing loan if he obtains the UAE citizenship in future.

Controls for Beneficiaries of Housing Construction Loan:

Abu Dhabi Housing Authority may cancel the approval on the loan issued to the beneficiary in the event that the loan is not activated in the case listed below, unless the non-activation is due to an emergency beyond the beneficiary's control and in the event that the approval on the loan is canceled for the reasons mentioned in this clause. The beneficiary is not entitled to submit a new application for any loan before passing two years from the date of cancellation of the approval on the loan in the event that construction works are not commenced within three (3) years from the date of approval on the housing construction loan.

Reference: 
https://www.iskan.abudhabi/Our-Services/Housing-Construction-Loan