Housing Loan Support and Exemption Services

The competent authorities provide a range of services and facilities to housing loan beneficiaries to support them in facing financial hardships and to enhance their social and living stability. These services include deferring installments, reducing their amounts, rescheduling payments, or suspending deductions. They also include exemptions from loan repayment in specific cases such as bankruptcy or insolvency, retirement, inability to earn, death, and early settlement, in addition to providing community support for certain types of housing loans, in accordance with approved terms and conditions.

Key Points:
Deferral, Reduction, Rescheduling, or Suspension of Installments
1-Beneficiaries may request:
•  Deferral of some installments.
•  Reduction of installment amounts.
•  Rescheduling of installments.
•  Suspension of installment deductions.
•  This service applies to all housing loans regardless of the date of loan approval.

Conditions:
•  The existence of an active housing loan under repayment.
•  The beneficiary must be a low-income individual or prove the existence of force majeure circumstances preventing repayment.

2-Exemption in Case of Bankruptcy or Insolvency:
The beneficiary may be exempted from repaying the loan amount, any remaining balance, or have installment deductions suspended.
Condition:
•  A court decision issued by the competent court approving the bankruptcy or insolvency request.

3-Exemption Upon Retirement:
The beneficiary may be exempted from repaying the loan amount or any remaining balance upon referral to retirement in accordance with relevant legislation and after assessing the citizen’s financial solvency.
Conditions:
• The beneficiary must be referred to retirement in accordance with applicable legislation.
• The beneficiary must be low-income.

4-Exemption in Case of Inability to Earn:
The beneficiary may be exempted from repaying the loan amount, any remaining balance, or have installment deductions suspended in case of proven inability to earn.
Condition:
• Submission of a certified medical report proving the inability to earn, issued by the entity specified by the Authority.

5- Exemption in Case of Death:
The heirs of the beneficiary may be exempted from repaying the loan amount, regardless of the type of loan, or any remaining balance in the event of the beneficiary’s death.
Conditions:
• The beneficiary must have signed the loan contract and registered the mortgage prior to death for all types of loans.
• Completion of the project by issuing a building completion certificate, or completion of the purchase procedures, depending on the type of loan.

6-Exemption in Case of Early Settlement:
The service allows the beneficiary to settle the remaining loan balance in a single payment with a 10% exemption of the remaining amount.
Conditions:
• The loan must be one of the following: housing construction loan, demolition and reconstruction loan, or home purchase loan.
• The applicant’s income must exceed AED 30,000 at the time of loan activation.
• Completion of construction works or completion of purchase and registration.
•  Proof of water and electricity connection to the housing unit from the competent authority.

7-Community Support:
Allows citizens to receive community support of AED 250,000 from the value of the granted loan
This support is limited to:
Housing construction loan.
Demolition and reconstruction loan.
Home purchase loan.
Conditions:
• Completion of construction works or completion of purchase and registration.
• Proof of water and electricity connection to the housing unit from the competent authority.
 

Text issued by the competent authorities:

Housing Loan Support and Exemption Services:
 

Deferment of installments, or reduction of their amount, or rescheduling thereof, or suspension of their deduction:
This service enables the beneficiary to apply for the deferment of certain loan installments, reduction of installment amounts, rescheduling of installments, or cessation of installment deductions, where the beneficiary is experiencing compelling financial circumstances that preclude fulfillment of their obligation to settle installments. This is governed by the rules and requirements determined by the Authority and applies to all loans regardless of the date on which the housing loan was approved.
General Conditions for Eligibility:
• Existence of a housing loan under settlement.
• The beneficiary must be of limited income or demonstrate the existence of force majeure circumstances that preclude compliance with installment settlement obligations.

Reference:https://www.iskan.abudhabi/en/Our-Services/Deferment-of-installments-or-reduction-or-rescheduling-thereof-or-suspension 

Exemption due to Bankruptcy or Insolvency:
It allows the beneficiary to be exempted from repaying the loan or the remainder thereof, or to suspend deduction of installments in the event of bankruptcy or insolvency.
General Conditions for Eligibility for Exemption due to Bankruptcy or Insolvency:
• Issuance of a decision by the competent court accepting the petition for bankruptcy or insolvency.

Reference:https://www.iskan.abudhabi/en/Our-Services/Exemption-due-to-Bankruptcy-or-Insolvency 

Exemption due to Retirement:
It allows the beneficiary to be exempted from repaying the loan or the remainder thereof upon retirement, in accordance with the relevant legislations, after examining the UAE national’s financial solvency.
General Conditions for Eligibility for Exemption due to Retirement:
• The beneficiary shall be retired in accordance with the relevant legislations.
• The beneficiary shall be of limited income.
Reference:https://www.iskan.abudhabi/en/Our-Services/Exemption-due-to-Retirement 

Exemption due to Incapacity to Earn:
It allows the beneficiary to be exempted from repaying the loan or the remainder thereof, or to suspend deductions of installment in the event that it is proved that the beneficiary is unable to earn.
General Conditions for Eligibility for Exemption due to Incapacity to Earn:
• The beneficiary shall submit attested medical certificate proving the state of disability, issued by the entity designated by Abu Dhabi Housing Authority.
Reference:https://www.iskan.abudhabi/en/Our-Services/Exemption-due-to-Incapacity-to-Earn 

Exemption due to Death:
It allows the beneficiary's heirs to be exempted from repaying the loan, regardless of its type, or the remainder thereof, in the event of the death of the beneficiary.
General Conditions for Eligibility for Exemption due to Death:
• The beneficiary shall have signed the loan contract and shall have register the mortgage before death for loans of all types.
• The project shall have been completed by issuing a building completion certificate or the housing purchase procedures shall have been completed, depending on the type of loan.

Reference: https://www.iskan.abudhabi/en/Our-Services/Exemption-due-to-Death

Exemption due to Early Repayment:
It allows the beneficiary to be eligible for exemption from repaying 10% of the remaining loan upon repaying the remaining loan installments in one installment.
General Conditions for Eligibility for Exemption due to Early Repayment:
1.The repayment shall be for a housing construction loan, a housing demolition and reconstruction loan, or a housing purchase loan.
2.The applicant shall earn an income exceeding AED 30,000 upon activating the loan.
3.The applicant shall have completed construction and building of the housing or shall have completed the purchase and registration process.
4.The applicant shall provide evidence proving connection of water and electricity to the housing by the relevant authority.

Reference:https://www.iskan.abudhabi/en/Our-Services/Exemption-due-to-Early-Repayment 

Community Support:
It allows a UAE national to obtain community support worth AED 250,000 (two hundred fifty thousand dirhams) of the value of the loan granted to him/her. This support is limited to housing construction loans, housing demolition and reconstruction loans, and housing purchase loans.
General Conditions for Eligibility for Community Support:
• The applicant shall have completed construction and building of the housing or shall have completed the purchase and registration process.
• The applicant shall provide evidence proving connection of water and electricity to the housing by the relevant authority.
Reference:https://www.iskan.abudhabi/en/Our-Services/House-Maintenance-Loan