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Account Review

At present, mortgage instalments for Abu Dhabi Finance mortgages are reviewed and recalculated every six months.

Add a Borrower*

Clients can choose to add an additional borrower to a sole name mortgage at any time. This is subject to a maximum number of two borrowers and the new borrower must be added to the Sale and Purchase Agreement (SPA) and  other necessary documents. See also “Remove a Borrower”.

 Additional Borrowing

After a mortgage has been fully disbursed, clients can apply for additional borrowing (also called a Further Advance/Top-up) at any time, subject to eligibility.

 Affordability (see also Debt Burden Ratio)

This is a key consideration when clients apply for a mortgage and relates to their ability to repay the loan based on several factors:

  • Monthly income after the deduction of regular monthly financial commitments.
  • The proposed monthly mortgage instalment
  • Monthly living expenses.
  • Age
  • Applicants must be a minimum of 21 years old to apply for a mortgage with Abu Dhabi Finance and a maximum of 70 years old at the maturity of the loan.
  • Allowable Income
  • To enable Abu Dhabi Finance to assess the Debt Service Ratio (see “DSR”) for your mortgage application, we will need to determine your Allowable Income.
  • There are a number of types of Allowable Income which may be appropriate to your individual circumstances, such as:
    • Basic Salary
    • Housing Allowance
    • Pension
    • Bonuses and Commission
    • Investments or Savings
    • Rental Income if the property being purchased is for investment purposes.


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Application Fee*

In order to reserve a mortgage product, a non-refundable application fee may be payable. Under certain promotions this may be waived

Approval-in-Principle (AIP)

If you would like to know how much Abu Dhabi Finance could lend to you up to a defined amount before you have decided on a particular property, we can provide you with an Agreement-in-Principle (AIP) which is subject to a time-limit and set criteria. Once you have found your desired property, your AIP can be processed into a full Mortgage Application. An AIP with Abu Dhabi Finance is valid for 60 days.

Approval-in-Principle (AIP) renewal*

If an Approval-in-Principle (AIP) letter expires, it can be renewed for a further period (of 60 days with Abu Dhabi Finance) if required. Additional documentation may also be required. Refer to our fees and charges.


This is the sum of all monies due but not paid, including interest, fees and charges. See also “Impaired Credit History”.


This is the transfer of the rights to a property or asset from one person or party to another. An example would be the purchase of a property on a leasehold basis where the rights to the property are assigned to a tenant for a set period of time through the signing of a leasehold agreement.

Bank Statements

Bank statements are used to enable Abu Dhabi Finance to assess how you manage your financial affairs and to confirm your income.

See “Financial Accounts, Payslips and Salary Certificates” for more information.

Building Contractor

See “Mamlakaty”. A Building Contractor will usually tender for a build project and will be appointed by a client by contract to build a Private Villa or Villas on “Granted land”. The Building Contractor will obtain all of the required official approvals to build the Private Villa or Villas.

The Building Contractor has to submit a plan for the build detailing the number of phases required to construct the Private Villa or Villas. It will also submit their Invoices at regular intervals to the Consultant. See “Consultant”. The Consultant will then arrange for payment of the Invoices by either the client or a lender.

The Building Contractor will ask their bank to provide a “Performance Bond or Guarantee” for the project, which protects the client and lender in the event of non-performance on the part of the Building Contractor.

Buildings Assurance – Mandatory for Townhouses and Villas only

This Assurance policy will cover the costs involved in rebuilding or repairing the property if the property is destroyed or damaged.  We will be happy to arrange this for you when you apply for a mortgage. Buildings Assurance can also be referred to as “Home Assurance”. See also “Contents Assurance” and “Reinstatement Value”.


A Buy-Out or remortgage is the process of moving your mortgage from one lender to another. An Early Repayment Charge may be payable to your current lender in these circumstances. Buy-Out is also known as a “Remortgage”.


Central Bank (CB)

The UAE Central Bank is a state organisation which directs monetary, credit and banking policy to support the UAE economy and the stability of the UAE Dirham.

Change in Approval Terms*

You can apply to change the terms upon which your mortgage has been agreed at any time. For example, you may wish to increase the loan amount, change the repayment type or amend the tenure or term of the loan. In these instances, your application may be reassessed. Change in Approval Terms can also be referred to as “Changes to your Mortgage Application”.Refer to fees and charges.

Change in Payment Date*

The Payment Date is the date each month by which you need to make a payment into your mortgage account to cover your monthly mortgage instalments. If your circumstances change, for example, if the date you receive your salary changes, you can request a change to your Payment Date. Refer to fees and charges

Change in Repayment Method*

See also “Repayment Method”. You can apply to change the method by which your mortgage is repaid at any time, subject to eligibility. Additional documentation may be required. Refer to fees and charges

Change of Loan Maturity Date*

Your Loan Maturity Date is the date by which your mortgage is due to be fully repaid. You can apply to change the date by which your mortgage is repaid at any time, subject to criteria and approval by Abu Dhabi Finance. Fees or charges may also be payable to the relevant Land Department or Developer to enable Abu Dhabi Finance to modify its mortgage agreement relating to the property. Refer to fees and charges

Changes to your Mortgage Application*

See “Change in Approval Terms”.


A charge is an amount of money paid to a company for providing a particular service. Charges may also be referred to as “Fees”.

Clearance Letter*

A letter is issued by a lender after the full and final settlement of a mortgage or loan, certifying that a mortgage or loan has been repaid. Refer to fees and charges

Co-borrower relationship

This applies to any additional borrower(s) whose name(s) appears on loan documents and whose income and credit history are used to qualify for the loan. The co-borrower is considered to be jointly and severally liable for the total loan amount.

Commonhold or Ownership-in-Common

Commonhold exists where two or more owners of freeholder property in a single development share the costs of running and maintaining shared services or facilities. This is carried out by entering into a Commonhold Agreement and Commonhold property can be, for example, a communal garden or communal swimming pool. See also “Freehold Title” and “Freehold”.

A Resident’s Committee is set up with mandatory membership by all parties to the Commonhold Agreement and the Committee decides how and when the costs for the upkeep of the communal property are to be paid.

Completion of Property Purchase

This is the point where the money or final instalment for a property is paid to the seller or the final instalment is paid for a property previously under construction. The legal ownership of the property is transferred to the buyer or the property is handed over to the purchaser.


See “Mamlakaty”. When a UAE National wishes to build a Private Villa or Villas on Granted land, they will appoint a Consultant by contract. The Consultant will generally be a professional firm which will “project manage” the construction of the Private Villa or Villas from start to finish. It will oversee the all phases of construction according to the Project Plan and ensure that the build is carried out to the required standards and to the client’s specifications.

The Consultant will usually provide architectural services (or will invite tenders from a selection of architects) for the design and plans for the building project. The Consultant will also request tenders for the build from a selection of “Building Contractors”. It is the client’s choice which Building Contractor will be appointed by contract to build the Private Villa or Villas.   

Abu Dhabi Finance carries out “Due Diligence” on all “Consultants” for “Mamlakaty” and maintains a list of Approved Consultants.

Contents Assurance

This insures the contents of your home, such as furniture and personal possessions, against theft, loss and accidental damage. We will be happy to arrange this for you when you apply for a mortgage.

Currency of Mortgage

Currently, Abu Dhabi Finance only provides mortgages in United Arab Emirates Dirham, although we reserve the right to convert the loan currency into any other currency for any purpose, including but not limited to, for the purpose of registering the Mortgage Agreement or assessing the secured liabilities with a court or other competent authority.

Customer Interest Rate

This is the rate at which interest is charged to a mortgage loan. Interest can be charged on a daily, monthly, quarterly, half-yearly or annual basis. The Customer Interest Rate can also be referred to as the “Interest Rate” or “Nominal Rate”.

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Debt Burden Ratio (DBR)

Debt Burden Ratios (DBRs) are used by lenders to assess the affordability of a loan for a client.

To calculate the DSR we add up all your regular monthly liabilities, including your proposed monthly mortgage instalment, and express these as a percentage of your allowable income.


A default on a mortgage occurs when a borrower fails to meet the Terms and Conditions of a mortgage. The Loan Agreement will specify circumstances in which a default will occur, for example, if you do not make your mortgage instalment on the Due Date. See also “Loan Agreement”.

Defects Liability Period (DLP)

Once a newly-built property is completed and handed over to the client, the Building Contractor provides the client with a letter or certificate confirming that any major or minor defects in the property construction will be rectified at the property developer’s or building contractor’s expense. The DLP is usually covered in the Fixed Price Contract and generally runs for a period of 12 months after the completion date or handover date of the property.

Deferment of an Instalment*

You can request to defer your monthly mortgage instalment until a later date at any time, subject to the terms and condition of the mortgage product you have chosen. You should be aware that this will result in an increase in your future monthly mortgage instalments as the expiry date of your mortgage is fixed when your mortgage is taken out. Deferment of an instalment is also known as a “Payment Holiday”.Refer to fees and charges


This is money paid to the seller or developer in advance to show your intention to complete the purchase of a property. All Abu Dhabi Finance mortgages require a deposit and the minimum required is currently 20% for UAE Nationals and 25% for Expatriates of the purchase price or valuation, whichever is lower. We will also ask you to provide evidence of the source of your deposit. See also “Loan-to-Value”. A deposit is also known as a “Down Payment”.

Direct Debit System (DDS)

Disbursements – Offplan Properties

These are monies payable to the Developer of a property in accordance with the agreed payment schedule, as defined by the Sale and Purchase (SPA) agreement. See also “Offplan property”.

Discounted Rate

A discounted rate mortgage is where a lender gives a discount off its Standard Variable Rate (see “SVR”) for a set period of time. At the end of the discounted rate period, interest on the mortgage is charged at the lender’s SVR for the remaining term of the mortgage. An application fee may be payable for a discounted mortgage rate.

Down Payment

See “Deposit”.

Due Date

When your Offer of Mortgage is issued, it will detail the date each month on which your monthly mortgage instalments are due to be paid. See also “Change in Payment Date”. Refer to fees and charges

Due Diligence

Abu Dhabi Finance will carry out a number of checks and investigate the suitability of certain third parties, such as Consultants, to ensure that they have the necessary skills and expertise to undertake the roles required of them. However, if Abu Dhabi Finance has carried out Due Diligence and commences a business relationship with a third party, Abu Dhabi Finance will not be liable for any negligence or non-performance on the part of the third party.

Duplicate of Any Document*

We can supply you with copies of documents we hold in connection with your Mortgage Application at any time. Refer to fees and charges

Duplicate of statement*

A copy of statements we have previously issued to you can be supplied at any time. We can also supply you with ad-hoc statements at any time upon payment of the Duplicate of Statement fee.

Early Repayment Charge*

If your mortgage is subject to an Early Repayment Charge and you repay some or all of your mortgage during the Early Repayment Charge period, a charge may be payable. Abu Dhabi Finance will, however, allow you to repay a set percentage of the outstanding capital balance each year.


Eligibility requirements must be met to qualify for a loan. The requirements will vary depending on the loan applied for, for example, some loans may be available only to owner-occupiers or for property investment purposes. Eligibility requirements will be detailed to you by your Mortgage Advisor.

Equated Monthly Instalment (EMI)

An Equated Monthly Instalment is the payment made each month on a repayment mortgage, consisting of interest and a partial reduction towards the outstanding capital balance, to ensure that the mortgage is fully repaid by the end of the mortgage tenure or term.


This is the difference between the value of a property and the total value of outstanding loans secured against the property. For example, if your property is valued at AED 2,000,000 and the total value of the outstanding loans secured against the property is AED 1,000,000, the equity in the property is AED 2,000,000 less AED 1,000,000 = AED 1,000,000.


This is the amount you will have to pay when claiming on a contents Assurance policy. For example, if the excess on your contents Assurance policy is AED 500 and you make a claim for a damaged personal possession valued at AED 1,000, you will have to pay AED 500 and the Assurance company will pay AED 500.


The terms and conditions of most Assurance policies will list items which are not covered by the policy. For full details of what is and what isn’t covered, you should always refer to your policy document.

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See “Charges”.

Fees and Charges List

This is a list of services which Abu Dhabi Finance provides together with details of the fees or charges payable for each service. A copy of the fees and charges charged by Abu Dhabi Finance is available from our website, www.adf.ae. See also “Tariff of Charges”.

 Financial Accounts

These are financial statements independently reviewed (and an opinion provided on) by an external auditor. The directors of the company are responsible for the preparation of financial accounts. For self-employed mortgage applicants, financial accounts help in measuring and recording the transactions of the business. See also “IFRS”.

Fixed Price Contract

See “Mamlakaty”. When tendering for a project to build a Private Villa or Villas, a Building Contractor will submit a plan for the build which will detail the amount and type of materials to be used for the construction. The details can be found in the Bill of Quantities. This will be incorporated into the overall Project Plan which will also specify the number of phases which will be required to complete the build.

Abu Dhabi Finance requires the amount quoted to build the project is agreed on a fixed-price basis so that the full cost of any project is fixed before construction commences. Abu Dhabi Finance also requires clients to provide evidence of contingency funds of at least 15% of the amount of the Fixed Price Contract to cover any potential over-spend during the construction of the project.


Freehold title is the most superior form of private property ownership and is an interest in real property not limited by time.


A freeholder is considered to be the absolute owner of land and buildings represented by the title to a property. Under Abu Dhabi Law No. 19 of 2005, only UAE Nationals and legal entities wholly owned by them can own Freehold property anywhere in Abu Dhabi. GCC Nationals can own Freehold property in Designated Investment Zones, whilst non-GCC foreign nationals can own apartment units or floors in buildings within Designated Investment Zones, but not the underlying land. See also “Commonhold”.

Further Advance

See “Additional Borrowing”.

Granted land

The Government of Abu Dhabi has been granting land on behalf of the Ruler of Abu Dhabi since the late 1960s. The aim of this is to enable UAE Nationals to build their own home. Financial assistance for this is also available, including the “National Housing Loan”.

Guaranteed Rate

A guaranteed rate is the interest rate you will pay on your mortgage for a set period of time and a non-refundable application fee may be payable. At the end of the guaranteed rate period, the interest rate will normally revert to the lender’s Standard Variable Rate or prevailing interest rate for the remaining tenure or term of the loan.

A non-refundable application fee may be payable for a Guaranteed Rate.

Handover certificate

The handover certificate is a document signed by a property developer or “Building Contractor” and a client which confirms that the client is happy to take over physical occupation of the property.

Home Assurance – Townhouses and Villas only

See “Buildings Assurance” and also “Contents Assurance”.

Impaired Credit History

Impaired credit is where an applicant has incurred arrears on any previous loan or rent arrangement.

An impaired credit history may also include bankruptcy, court judgements or other defaults. See also “Arrears”.

International Financial Reporting Standards (IFRS)

A standard set of international accounting standards to which all Financial Accounts submitted to a lender should conform. See also “Financial Accounts”.

Interest Rate

See “Customer Interest Rate”.

Interest Only Mortgage

See “Repayment Methods”.


An instalment is one of a successive number of payments in the settlement of a debt. The frequency of mortgage instalments is usually monthly.

 Investment Property

An investment property is a property that is not occupied by the owner, usually purchased specifically to generate profit through rental income.

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Know Your Customer (KYC)

Know Your Customer (KYC) is the due diligence process that financial institutions must perform to positively identify their clients and to find out information which is relevant to conducting financial business with them.

Land Department

This is a government department responsible for recording property ownership. A fee will be payable to the developer or land department to register the title to a property in your name.

Late Payment Fee*

A fee will apply if you do not make your monthly mortgage instalment by the due date.Refer to fees and charges


A lease is a legally binding agreement between a freeholder (or landlord) and a leaseholder (or tenant) which details the length of time of the lease and the agreed price or amount of rent payable over a specified period of time.

Leasehold Title

A “leaseholder” acquires the right to use a property by a freeholder granting them a lease for a set period of time (usually 99 years, or longer in some instances). The granting of the lease creates a landlord and tenant relationship.

The granting of a lease to a leaseholder by a freeholder involves payment of a consideration or rent which is a fixed amount of money paid by the leaseholder to the freeholder at the time the lease is granted. A small annual fee may also be payable by the leaseholder to the freeholder and the leaseholder is also responsible for the payment of service charges which may apply to the property.

On expiry of the lease, the leaseholder gives vacant possession of the property back to the freeholder, unless a further lease is being granted for which a further consideration will be required.

In Abu Dhabi, leaseholds may be granted to foreigners in designated Investment Zones. Leasehold or Strata Law in Abu Dhabi is currently under review.

Length of Service

This is the length of time that you have been with a particular employer.


Liabilities are any financial obligation you may have, such as, personal loans, mortgages or credit card debts. If you have to pay rent once your loan from Abu Dhabi Finance is fully disbursed, this will also be included as a financial liability when we carry out our affordability check.Eg. Credit card limits, car loans, personal loans etc…

Liability Letter*

You can request Abu Dhabi Finance to issue you with a Liability Letter which will confirm the position on your mortgage. A Liability Letter is valid for 15 days and will take account of the current principal outstanding balance on your mortgage; interest accrued but not paid up to and including the next 15 days interest on your mortgage; payments due from you and disbursements due on your behalf during the 15-day period. Check with OPS


A lien is a legal right to take possession of another person’s property if a debt, loan or obligation is not met. When taking a charge over a property, Abu Dhabi Finance takes a lien over the property.

Life Assurance

This is an Assurance taken out on an insured party where the nominated beneficiary receives a payment if the insured party dies. Life Assurance can also be referred to as “Loan Protection Assurance” and can be assigned to a lender as part of the security for a loan.

Loan Agreement

This consists of a mortgage or loan offer and a document which details the Terms and Conditions which apply to the mortgage or loan.

Loan Protection Assurance

At Abu Dhabi Finance, our Loan Protection Assurance policy provides not only Life Assurance, but in addition, Permanent Total Disability and Terminal Illness benefits, subject to terms and conditions. See “Life Assurance”.

Loan Purpose

This is the purpose for which a loan can be used, for example, property purchase, re-mortgage (or Buy-out) from another lender or Additional Borrowing / Further Advance.

This is the ratio of the fair market value of a property or purchase price, whichever is lower, in relation to the value of the loan taken out to finance the purchase.

For example, if the loan taken out to buy a property is AED 1,000,000 and the lower of the fair market valuation or purchase price is AED 2,000,000, the LTV is (1,000,000 / 2,000,000) x 100 = 50%.

At our sole discretion, we will lend up to LTV 80% for  UAE Nationals and up to 75% for Expatriates. See also “Down Payment”.

Loan-To-Value (LTV)

This is the ratio of the fair market value of a property or purchase price, whichever is lower, in relation to the value of the loan taken out to finance the purchase.

For example, if the loan taken out to buy a property is AED 1,000,000 and the lower of the fair market valuation or purchase price is AED 2,000,000, the LTV is (1,000,000 / 2,000,000) x 100 = 50%.

At our sole discretion, we will lend up to LTV  80% for  UAE Nationals and up to  75% for Expatriates. See also “Down Payment”.

M - O

Maintenance Charges

These are paid to the developer to cover the annual cost of maintaining or keeping a block of flats, apartments or commonhold property in a good state of repair. Maintenance charges can also be known as “Service Charges”.


A Mortgage Product from Abu Dhabi Finance designed specifically for UAE Nationals only. Mamlakaty helps clients to purchase a completed Private Villa, to release equity from a completed Private Villa  or to construct their own Private Villa   on “Granted land”. Terms and conditions apply. Check with Mike.

Market Value (MV)

The market value is the most probable price which a property should achieve in a competitive and open market under all conditions required for a fair sale.

Memorandum of Understanding (MOU)

This is a legal document outlining the terms and details of an agreement.


A mortgage is a loan which you use to buy your home or other property. The property purchased with the mortgage becomes the security for the loan.

Mortgage Advisor

Abu Dhabi Finance employs Mortgage Advisers (MAs) who will discuss your mortgage requirements with you and who will lead and guide you through the mortgage process up to the point when you are ready to sign your mortgage Offer Letter. Once you have signed your mortgage Offer Letter, you will be assigned a Mortgage Companion™ who will lead and guide you through the remainder of the mortgage process.

Mortgage Amount

The minimum amount we will lend is AED 250,000 or AED 50,000 for additional borrowing (see also Further Advance). As a general rule, we do not have a maximum loan amount, but this is subject to UAE Central Bank regulations.

Mortgage Application Form

Our Mortgage Application Form must be fully completed before it is submitted to ensure that your mortgage application is processed as quickly and as smoothly as possible.

You should also ensure that all of your Financial Liabilities, for example, other mortgage loans or personal loans are fully declared when you complete the Mortgage Application Form.

Mortgage Companion™

Once you have signed your Offer Letter, a Mortgage Companion will help you with the mortgage registration and transfer process and will remain your point of contact for all future queries and request concerning your mortgage

Mortgage Loan Balance

This is the total sum outstanding on a mortgage loan at any one point in time and is made up of the outstanding capital amount owing plus interest accrued to-date but not paid together with any unpaid fees and charges.

Mortgage Offer

This is an offer in writing to lend money on a property. See also “Offer of Mortgage”.

Multiple Applicants

This applies where there is more than one client applying for a mortgage (maximum of two).

Multiple Properties

This situation applies where you are buying and applying for mortgage finance for more than one property. Abu Dhabi Finance will lend on up to three properties per customer on properties in Abu Dhabi  and Dubai. The number of properties on which Abu Dhabi Finance will lend is at the sole discretion of Abu Dhabi Finance.

Musataha Title

This is a type of leasehold and is a legal right to build on and retain the building on another person’s land for a fixed term of years. The maximum period is 50 years and on expiry of the term, the period may be extended upon mutual agreement by both parties. Musataha is usually granted to a tenant through a “Ground Development Lease”.

Net Purchase Price

This is the amount payable by a client after any discount is taken into account, excluding any fees.

No Objection Certificate*

A No Objection Certificate (NOC) is a written confirmation that an interested party such as a lender has no objection to the property being sold. An NOC will be required before a mortgaged property can be sold and will be supplied by the current lender.

In addition, if a developer has agreed to the cancellation of a property purchase, Abu Dhabi Finance will issue you with an NOC confirming our agreement to the repayment of your loan, subject to terms and conditions.

Offer of Mortgage

See “Mortgage Offer”.

Offer Letter Renewal*

Offer Letters are valid for a set period of time from the date of issue which will be detailed in your Offer Letter. Abu Dhabi Finance Offer Letters are valid for a period of 30 calendar days. If the Offer Letter has expired and a new Offer Letter is required, for example if the original Offer was not accepted or the loan has not been drawn down within a set period of time, a new Offer Letter can be provided, subject to a re-assessment of your financial circumstances and additional documentation may be required. Refer to fees and charges. (Check with ops)

Offplan property

This is a property due to be constructed or under construction and not yet completed. See also “Disbursements – Offplan Properties”.


An owner-occupier is someone purchasing a property in which they will live as their main residence.

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Part and Part

See “Repayment Methods”.

Payment Holiday*

See “Deferment of an Instalment”.

Pay Slips and Salary Certificates

These arethe original documents detailing your salary or wages paid, less any sums of money deducted by your employer at source. They must be dated maximum 30 days previously. Check with Mike

 Permanent change in payment mode*

A permanent change in payment mode is where you change the way in which you pay your monthly mortgage repayments, for example, changing your payments by cheque to a Standing Instruction Order. Refer to fees and charges

Processing Fee

A non-refundable processing fee is part of the charge for a mortgage loan. Refer to fees and charges

Proof of Address

Proof of Address is required to show that you live at the address specified in your Mortgage Application.


Abu Dhabi Finance will lend for the following purposes:

  • Property purchase
  • Equity Release / Further Advance / Additional Borrowing for existing Abu Dhabi Finance borrowers
  • Remortgages from other lenders with or without Equity Release.
  • Investment property purchase.
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Registration of Mortgage

By Law, mortgages are required to be registered with a developer and relevant registration authority for which a fee may be payable to the developer or relevant registration authority.

Reinstatement Value

The Reinstatement Value of a property is the cost of replacing the property with the exact specification and age at today’s value with consideration to depreciation and the current cost of construction. The cost of construction will include:

a) Professional fees, preliminary assessment and contingency costs;

b) An inflation factor in respect to:-

            i. Lead time for demolition and building approval;

            ii. Construction period;

c) Extra costs of reinstatement;

d)An estimate for re-housing or loss of rent;

Removal of debris, excluding any allowance for the safe removal of any unknown hazardous materials.

Replacement Value

See “Reinstatement Value”.

Remove a Borrower*

You can choose to remove a borrower from a joint mortgage at any time, subject to assessment, our agreement and amendment to the Sale and Purchase Agreement (see “SPA”). See also “Add a Borrower”.


See “Buy-Out”.

Repayment Methods

There are various methods you can choose to repay a mortgage loan. These are:

• Interest-Only - With an Interest-Only loan, your monthly payments cover the interest and no capital is repaid. As you are repaying only the interest, your monthly payments are lower than a similar value Repayment loan. However, over the longer term, an Interest-Only loan will typically cost more money than a similar value Repayment loan as the balance that interest is calculated on will not have reduced. Furthermore, you would still need to find a way to repay the capital at the end of your mortgage loan term. An Interest-Only repayment method can be selected for both under-construction property phases as well as completed property phases. Please note that you will be eligible to borrow a lower proportion of the value (or purchase price) of your property if you select this repayment method during the completed property phase.

• Repayment – With a Repayment loan, your monthly payments are made up of two elements; one to pay the interest and one to repay the capital. During the initial stages of the loan, the majority of your monthly payments cover interest although some capital is repaid. Over time, as the capital is reduced, less interest is charged and more capital is repaid reducing your loan further. The exact proportion of capital repaid in relation to interest paid is dependent on the term of the loan. A shorter term generally means that you will start to pay more capital than interest at an earlier stage. A Repayment loan is the only option that will guarantee to repay your loan over a defined term provided that you keep up with payments. Repayment loans are only available during the completed property phase.

• Part and Part – With a Part and Part loan, a proportion of the loan is treated as Interest-Only and a proportion of the loan is treated as Repayment. Therefore you will still need to find a way to repay a proportion of the outstanding capital at the end of your mortgage loan term. Your monthly repayments are lower than a similar value Repayment loan, however, higher than a similar value Interest-Only loan as the payments made will include an element of capital repayment. Over the longer term, you would pay more interest on a Part and Part loan than on a similar value Repayment loan, as more of the debt remains unpaid throughout the term. Please note that you will be eligible to borrow a lower proportion of the value (or purchase price) of your property if you select this repayment method. Part and Part loans are only available during the completed property phase.

Repayment Mortgage

See “Repayment Methods”.

Restricted Applicant Profile (RAP)

There are certain categories of mortgage applicant to which Abu Dhabi Finance is not permitted to lend due to legal or regulatory considerations. For example, a valid UAE Residency Visa is required before Abu Dhabi Finance will consider lending to nationals of specific countries.

Salaried Applicant

A salaried applicant is someone who is employed by a company and is paid a monthly salary.

Sale and Purchase Agreement (SPA)

This is a written contract signed by the buyer and seller of a property which details the terms and conditions under which a property will be sold.


See “Additional Borrowing”/”Further Advance”

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Unconditional Payment Order

When you apply for a mortgage with Abu Dhabi Finance, we will ask you for a signed undated cheque which may be used to cover the full repayment of your mortgage including unpaid fees, charges and interest accrued but not paid in the event that you default on your mortgage.

If the  cheque is unpaid, this constitutes a criminal offence and may lead to legal action being taken against you. 

For joint accounts (a mortgage loan in two names), a cheque drawn on a joint account is required, or if no joint account exists, a cheque from each borrower for the full amount of the loan is required.

Self-employed Applicant(s)

A self-employed applicant runs their own business as a sole proprietor, owns a 5% share in a business or is a partner owning a share in a partnership business.

Service Charges

See “Maintenance Charges”.

Standard Lending Rate

See “Abu Dhabi Finance Rate”.

Standard Prevailing Interest Rate

See “Standard Variable Rate”.

Standard Variable Rate (SVR)

This is the standard rate paid by clients and is generally made up of a lender’s Base Lending Rate plus a margin to give the “Customer Interest Rate”. It is a general interest rate which is set in line with current mortgage market conditions and rates offered by competitors. SVR can also be referred to as “Variable Rate”.

Standing Instruction Order

For Non-Resident or “Compass” scheme mortgages, EMI’s or monthly instalments are collected by Abu Dhabi Finance by Standing Instruction Order (SIO). An SIO is a written instruction to your bank to pay a stated amount of money to a beneficiary’s bank account at regular intervals. An SIO remains in place until amended or cancelled.

Tariff of Charges

See “Fees and Charges List”.

Tenure or Term of a Mortgage

The tenure or term of a mortgage is the period over which the mortgage is taken. Abu Dhabi Finance will lend for a minimum period of three years and up to a maximum period of 25 years, subject to eligibility.

Terms and Conditions

The Terms and Conditions applicable to a loan or mortgage are specified in a document which details the restrictions which apply to the specific mortgage.


Where documentation is received in languages other than Arabic or English, it must be translated into Arabic or English.

Unconditional Payment Instruction

See “Security Cheque”.

Valuation Report*

A Valuation Report details a professional valuer’s opinion of the current fair market value of a property.

Variable Rate

See “Standard Variable Rate”.


A visa is an official authorization allowing a person to live and / or work in a different country to that to which they hold citizenship.

*= A fee will be charged for this service, as detailed in our list of “Fees and Charges”. A copy of the list will be given to you by your Mortgage Advisor. It is also available from this website. The service is subject to our approval and product parameters.

Please note: The definitions provided in this Glossary of Mortgage Terms are for guidance only. If there is a conflict between a definition provided in this Glossary of Mortgage Terms and a definition contained within the Abu Dhabi Finance Loan Agreement, the definition contained within the Abu Dhabi Finance Loan Agreement will take priority.