Mortgages
Islamic home finance
Islamic home finance follows the same Central Bank limits as a conventional mortgage, but the bank earns a profit rate through a lease or sale structure instead of charging interest. We compare offers from the Islamic banks and the Islamic arms of conventional banks.
The main structures
Ijara is the most common in the UAE. The bank buys the property and leases it to you. Your monthly payment covers rent and a share of the price, and ownership passes to you at the end.
In Murabaha, the bank buys the property and sells it to you at a known, higher price, paid in instalments. In diminishing Musharaka, you and the bank co-own the property and you buy out the bank's share over time.
Comparing Islamic and conventional offers
Monthly payments are calculated the same way, so you can compare a profit rate directly with an interest rate. Insurance is usually Takaful. Early settlement fees follow the same 1% or AED 10,000 cap.
Some buyers choose Islamic finance simply because it is the best offer that month. Others only want Sharia-compliant products. Either way, we show you both where it makes sense.
Documents to have ready
If you are salaried
- Passport, residence visa and Emirates ID
- Salary certificate dated within the last 30 days
- Last 6 months of bank statements showing your salary
- Last 3 to 6 payslips (some banks ask for these)
- Property details: MOU, title deed or sale and purchase agreement once you have them
If you are self-employed
- Passport, residence visa and Emirates ID
- Trade licence and memorandum of association (most banks want 2+ years trading)
- 6 to 12 months of personal and company bank statements
- Audited financial statements for the last 2 years
- Company profile and main client contracts, if the bank asks
Banks can ask for more depending on your case. We send you a checklist for your specific bank once we know which one fits.
Questions about islamic finance
Is Islamic home finance more expensive?
Not necessarily. Profit rates move with the same market rates as conventional mortgages, and Islamic banks often have the lowest offer in a given month.
Can I move from a conventional mortgage to Islamic finance?
Yes. It works like any balance transfer: the Islamic bank pays off your current loan and the new structure starts from there.
Find out what the banks will offer you
Two minutes of questions, then a broker comes back to you with the banks that fit and what they are likely to lend.