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.

Islamic structure of financing against Residential Ready Properties:

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 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.

Key Finance Features & Benefits:

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

-    Long 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

-     Employment Duration:

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

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

-     Finance Tenure: upto 25 years

Self Employed Applicants:

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

-    Minimum Income

1.  From Business:

o Average Net Profit: AED 30,000 per month or

o 20% of the minimum average monthly credit of AED 100,000

2. From Property Rent:

o 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

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 Months 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:

a)      Residential Ready Properties – New Finance:

b)     Residential Land:

Fees and Charges:

Notes:

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

-    Any application or processing fees or approval re-validation fee 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 as required by law and regulation

Approval Validity:

-    The customer shall have the right to have a Cooling-Off period, of 5 complete business days commencing from the time of signing the contract for the relevant finance, hence if the customer opted to terminate the contract within the cooling off period, the bank has to refund to it any related fees and direct costs already incurred by the customer. However, if the customer, within the cooling off period, disposed of/acted on the subject of the contract in any manner, its right in the cooling off period will cease. The customer may also waive its right in the cooling off period by its written consent.  For more information, please review the relevant form issued along with the finance approval

-    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

-    “Expired In-Principal Approval”: In case 30 calendar days lapsed or re-submitting the documents after 45 calendar days for final approval; then the advance fee collected earlier will NOT be refunded NOR adjusted with the re-submitted case and customer will have to deposit new advance fee amount before re-submitting the documents to Bank for the final 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 Final Approval”: Approval Re-validation will be required along with the fee as per respective product (AED 1,000 for residential property); if the Ijarah and other related contracts are not signed by the customer within Final Approval validity of 45 calendar days

-    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:

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

b)   No refund or adjustments of the advance processing fee amount paid earlier will be accepted

-    Customer will have the right to get - 5 complete business day’s cooling off (recession) period from the time bank has approved the finance request. If for any reason customer decides not to proceed with his/her finance application after the bank has provided the approval; the bank will refund any related fees net of any reasonable and direct costs already incurred by the bank. However, customer will have the option to waive his/her right to recession period after providing his/her written consent

Calculation and Charging of profit:

-    We calculate profit on the daily outstanding balance of the Home Finance facility. Profit is payable monthly or as approved by the Bank

-    Profit is calculated on the basis of a 360 days calendar year and accrues daily

-    Fixed Introductory Profit Rate Finance:

a)     Fixed profit rate will apply to the applicable introductory period only

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

-    Any changes to the Mortgage Finance Rate will take effect immediately. We will inform customers of the change either by email or by SMS within 30 days of the change

-    SIB Margin will be set out in the Agreement and will remain fixed for the duration of the full 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 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:

a)     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);

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

c)     To ensure that the Home Finance outstanding balance is repaid no later than the 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 4.25% 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:

a)     Principal outstanding balance amount

b)    Accrued and unpaid profit amount as of termination date

c)   Any amount representing the costs of insurance (including any insurance undertaken on behalf of the customer in accordance with the terms of this contract) & major maintenance and taxes incurred by the Bank

d)    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

Warnings: if you do not keep up your repayments/payments on the time then: 

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

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

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

-    We may also at our absolute discretion vary any of the terms and conditions of the agreement at any time by giving you 30 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