Deferred Repayment Housing Purchase Loan for People with Limited-income

The Deferred-Payment Home Purchase Loan aims to support low-income citizens and enable them to own an adequate residential unit within the Emirate, through the provision of a housing loan repayable in monthly installments. The loan may be used to purchase a home from strategic partners, approved developers, or from the local market, within a regulatory framework that takes into account social and humanitarian considerations and promotes family stability.

Key Points and Conditions:
First: Loan Value and Benefits:
•    Loan amount: AED 1,750,000 for the purchase of a residential unit
•    Repayment is made through monthly installments
•    If the Government does not cover the infrastructure cost of the purchased unit:
•    The beneficiary shall be granted an additional financial grant of AED 250,000, disbursed together with the loan

Second: General Eligibility Conditions:
•    The applicant must be a UAE national and legally competent.
•    Continuous residence within the State.
•    The applicant must be classified as low-income.
•    Age between 25 and 45 years, subject to stated exceptions.
•    The applicant or their spouse must not have previously benefited from any government housing loan or housing grant (excluding loans obtained by the wife prior to marriage).
•    The application must be submitted individually.
•    The applicant must not own a suitable residential unit or residential land.
•    The purpose of the purchase must be housing for the applicant and their family.
•    If the applicant previously received a residential land grant and/or an inactive construction loan:
•    An undertaking to relinquish the undeveloped residential land to the Authority or a designated entity.
•    Cancellation of the construction loan, if any, or replacement with a home purchase loan.

Third: Conditions for the Property to Be Purchased (Local Market)
If the property is an existing unit:
•    Ready for occupancy.
•    Suitable for habitation for a period of 25 years from the date of purchase.
•    The property area must be appropriate for the size of the applicant’s family throughout the expected lifespan of the unit.
•    Free from disputes and legal impediments.

If the property is off-plan:
•    The developer and project must be approved by the Authority.
•    The property area must be appropriate for the size of the applicant’s family.
•    Free from disputes and legal impediments.

Fourth: Commitments and Guarantees
•    An undertaking to provide any additional funds exceeding the loan amount when requested.
•    Mortgaging the entire land and residential unit as a first-ranking security mortgage in favor of the Authority until full repayment of the loan.
•    Official registration of the mortgage and all related property transactions.
•    The Authority may require the applicant or beneficiary to provide a financially solvent guarantor, as deemed necessary.

Fifth: Special Conditions According to Eligible Categories
•    Male applicants: Age between 25 and 45 years (married applicants are exempt from the age condition).
•    Widows: Not exceeding 45 years of age, custodians or providers for one or more children, with additional residency requirements for non-citizens, and must not own suitable housing or land.
•    Unmarried female citizens: Aged between 30 and 45 years, without a capable guardian, or acting as a housing provider for relatives up to the second degree, and must not own suitable housing or land.
•    Divorced female citizens: Aged between 30 and 45 years, with a final irrevocable divorce or at least three years elapsed since divorce, custodians or providers for children, and must not own suitable housing or land.
•    Female citizens married to non-citizens: Aged between 30 and 45 years, with children residing with them, the husband unable to provide suitable housing, and a written undertaking from the non-citizen husband not to apply for any housing loan should he acquire UAE nationality in the future.

Sixth: Utilization Controls:
•    The Authority may cancel the loan approval if the beneficiary fails to initiate the purchase and registration process within six (6) months from the approval date, unless due to circumstances beyond the beneficiary’s control.
In the event of cancellation, the beneficiary may not submit a new application for any housing loan until two (2) years from the date of cancellation.


The official text issued by the competent authorities:

Deferred Repayment Housing Purchase Loan for People with Limited-income:
It allows a UAE national to borrow a specific amount of AED 1,750,000 (one million seven hundred fifty thousand dirhams) to purchase a housing from strategic partners or developers approved by Abu Dhabi Housing Authority or the local market in the emirate. The loan is repaid in monthly installments. In the event that the government fails to cover the costs of infrastructure of the purchased housing, the UAE beneficiary shall be granted, in addition to the housing purchase loan, a financial grant of AED 250,000 (two hundred fifty thousand dirhams), disbursed with the loan.

Special Conditions for Eligibility for the Service:
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.    The applicant shall be a limited-income earner.
5.    The applicant shall be aged between twenty-five (25) and forty-five (45) years.
6.    Neither the applicant nor his spouse has benefitted from any housing loans or housing grant from any government entity, whether federal or local, except for the housing loans received by the wife before marriage.
7.    He /She shall be a sole applicant.
8.    The applicant shall not be a limited-income earner.
9.    The applicant shall not own suitable housing acquired through a grant or housing purchase loan, and the purpose of the purchase shall be to provide housing for the applicant and his/her family.
10.    In the event that the applicant has previously benefited from a residential plot of land grant and/or an inactive housing construction loan, he/she shall undertake to assign the unbuilt residential plot of land granted to him/her either to Abu Dhabi Housing Authority or the entity designated by Abu Dhabi Housing Authority, and shall agree to cancel the housing construction loan - if any - or replace it with a housing purchase loan.
If the purchase is from the local market of the emirate, the following conditions shall be met:
A-If the housing to be purchased is already existing, the following conditions shall be met:
•    It shall be ready for occupancy.
•    It shall be in good structural condition suitable for occupancy for a period of twenty-five years from the date of purchase.
•    The area of the housing to be purchased shall be commensurate with the changing size of the applicant's family over the expected life of the housing.
•    It shall be free of legal disputes and impediments.

B-If the housing to be purchased will be built in the future (pre-construction), the following conditions shall be met:
•    The developer and the project shall be approved by Abu Dhabi Housing Authority.
•    The area of the housing to be purchased shall be commensurate with the changing size of the applicant's family over the expected life of the housing.
•    It shall be free of legal disputes and impediments.

11.    The applicant shall undertake, upon request, to provide evidence proving that he/she can provide the additional funds required to execute works or purchase, whose value exceeds the amount of the loan granted by Abu Dhabi Housing Authority. Purchase contract is not approved before these guarantees are provided.
12.    The applicant shall undertake to mortgage the entire plot of land owned by him/her or granted to him/her and the building on it and the facilities and the attached buildings and easements rights 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.
13.    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 Deferred Repayment Housing Purchase Loan:
-Males:
•    The applicant shall be aged between twenty-five (25) and forty-five (45) years. Married applicants are exempted from this requirement.

-Widows:
•    She shall not be over forty-five (45) years of age.
•    She shall be the custodian or provider of one or more children. Elderly widows or widows who are unable to bear children are exempted from this requirement, by virtue of a medical report issued by the competent authority.
•    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.
•    She does not own a residential plot of land or a suitable housing.

-Unmarried Female UAE Nationals:
•    She shall be aged between thirty (30) and forty-five (45) years.
•    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.
•    She does not own a residential plot of land or a suitable housing.


-Divorcée:
•    She shall be aged between thirty (30) and forty-five (45) years.
•    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.
•    She does not own a residential plot of land or a suitable housing.

-Female UAE Nationals married to Non-UAE Nationals:
•    She shall be aged between thirty (30) and forty-five (45) years. Social and humanitarian cases are exempted from the age requirement, according to the social report issued by the competent authority.
•    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.
•    She does not own a residential plot of land or a suitable housing.
•    The husband shall be unable to provide a suitable housing for the family.
•    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 Deferred Repayment Housing Purchase 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 purchase and registration are not commenced within sixth (6) months from the date of approval on the housing purchase loan.