The official website of the Abu Dhabi Housing Authority has received dozens of questions from citizens recently. According to the UAE Today, the most prominent issues focused on five main issues: the percentage of deductions from the salaries of borrowers, the possibility of providing housing benefit for citizens married to two, and the mechanism and dates of deduction from borrowers with low income, in addition to the rate of applications for housing interest loans. Approved by the Authority annually, and finally categories eligible for exemption from housing loans.
The Authority's most prominent response to the citizens' questions is that it affirms that the deductions of the value of the housing loan from low-income citizens start as soon as their financial solvency (exiting the low-income group) improves for the remainder of the term financed loan, not retroactively. Increasing the number of housing loans granted to citizens, from 2500 to 5000 applications annually.
In detail, the Authority stated that its policies regarding housing grants and loans to citizens do not allow the replacement of land for ready housing, or vice versa, pointing out that the criteria for eligibility of citizens for maintenance loans or expansion of their housing requires that the age of the housing ranges between 15 and 25 years, but in the case of demolition loan For reconstruction, the age of the dwelling must not be less than 25 years, in addition to the structural condition of the dwelling, as determined by the technical report.
In response to citizens' questions on its official website, she pointed out that there are controls regarding the continuation or cessation of housing loans for deceased citizens, explaining that if the death occurs after the loan is approved, before the start of construction works, the loan application will be canceled, or if it has started Construction, construction is completed, and heirs are exempted from repayment.
According to the Authority, the total number of applications for housing loans issued for approval during the year was between 2000 and 2500 applications, but work is underway to provide new housing solutions, in line with the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Commander Supreme Council of the Armed Forces, granting 5,000 housing loans annually.
In response to a question about whether it is deducted from the salary of low-income people “retroactively”, after the borrower has graduated from a low-income classification, the TRA stated that the loan repayment period is determined in the light of social status and financial solvency (maximum 25 years). 25% of the monthly salary, monthly income, as the case may be, or the value of the monthly housing allowance. Withholding from low-income earners begins as soon as their financial solvency (exiting the low-income group) improves, for the remainder of the loan, which does not exceed 25 years; or By the end of the shelf life of the housing financed by the term loan.
According to the Authority, the new policies announced recently, including increasing the maximum loan for the purchase of ready-made housing to two million and 250 thousand dirhams, and get low-income people to one million and 250 thousand dirhams, in the form of a loan repayment in the event of improved solvency of the beneficiary. It has also introduced programs that allow a polygamous citizen, who has received a previous housing grant, to obtain a piece of residential land (without infrastructure) for use in order to provide housing for the second wife.
According to the updated housing program policies in Abu Dhabi, the maximum amount of the prefabricated home loan has been increased to AED2,250,000, with the possibility of an additional exemption of AED250,000 if the government does not pay the cost of the housing infrastructure in question. The updated policies also provide for the transfer of loan approval to a ready-to-buy home loan for a citizen who has the approval of a home construction loan, or a demolition and rebuilding loan, and disburses the housing grant if he does not own any other housing in the emirate, in accordance with the established regulations.
The Authority stressed that it is working to expand the base of beneficiaries of financial grants, as people with limited income get a million and 250 thousand dirhams, in the form of a loan repayment, which is obtained in the event of improved financial solvency of the beneficiary, and his income exceeds the maturity limit for this category, as raising the maturity ceiling for loans The term of repayment to AED 20,000, so that income after deducting the value of the repayment installment is not less than AED 20,000, while construction loans are granted to the able to take into account the income and solvency of the citizen, as the value of the loan, the amount of the installment, and the period of repayment, according to monthly income, so as not to Repayment period is over 25 years.
The Authority has set 12 conditions for obtaining a housing benefit loan, starting with the applicant being a UAE national, having completed 22 calendar years, being a permanent resident of the State, and fulfilling the length of service (as follows: For a doctorate, for two years for a bachelor's or master's degree, and for four years for a high school diploma or below).
Also included in the list of conditions, is that those who have children are exempted from the term of service, in accordance with the regulations set by the Authority, and that he or his spouse has not benefited from any housing loan benefits from any government, whether federal or local (except maintenance and expansion loans) Addition, demolition and reconstruction loans, housing loans obtained by the wife prior to the marriage contract, and any other cases the Council decides to exclude.
It also included that he owns a dwelling or residential land in the Emirate registered in his name, free from legal barriers to construction and disposal, and has the necessary infrastructure, and not be of limited income. In the case of low-income citizens, they would benefit from the loan programs mentioned in this system, in the form of a term loan, with deduction to begin when their financial solvency improves.
Among the conditions are also proof of its ability to provide the additional amounts required for the implementation of construction works, which exceed the value of the loan granted by the Authority, and does not cost the consultant or the award of the works, only after obtaining these guarantees, and that the applicant is alone - unless the land Ownership is common, as it is stipulated that owners do not have to obtain a housing loan in advance, collectively or individually. In the event that they are minors, the application shall be considered in coordination with the relevant authorities - and pledge to pledge all the land owned or granted to it, and the construction thereof, if any, and the accompanying facilities, attachments and easements, subject to first class insurance for the benefit of the Authority, or the authority it determines. Until the loan is repaid, the mortgage must be formally registered in accordance with the legal provisions prescribed before the loan is granted. All transactions are recorded in the real estate register with the concerned authority in the Emirate.
The conditions gave the Authority the right to request the applicant or beneficiary to provide a solvent guarantor of the citizen, in accordance with the conditions determined by the Authority, in coordination with the body you specify to manage the housing loan. Finally, the applicant undertook not to apply to the Authority for any housing construction loan or purchase of a ready-made housing loan until 25 years from the date of approval of the loan and full repayment of the loan.
3 categories are eligible for loan exemption
The Abu Dhabi Housing Authority reported that there are three categories of beneficiaries who are exempt from repayment of housing loans:
First, retired citizens with low incomes (pensions below 20,000 dirhams), or insolvents who are financially insolvent and unable to pay dues.
The second, the "deceased," to alleviate the suffering of their families, as they apply for the dependents of the deceased, to study their financial solvency, to exempt those who deserve them.
The third, called “social exemption”, means a citizen who is incapable of earning a living, or who has a medical disability that prevents him from working, provided that this is confirmed by approved medical reports without regard to the age requirement, confirming that the Authority receives requests for exemption from citizens electronically, or from During a visit to its headquarters, to examine the application and solvency.
12 conditions for obtaining the housing benefit loan
1. To be a citizen.
2. To be 22 calendar years.
3. To be a permanent resident of the State.
4. He must meet the service period.
5. The spouse should not have benefited from any housing loan benefits.
6. To own a dwelling or residential land in the Emirate registered in his name and free from legal barriers to construction.
7. Not to be of low income.
8. Provide proof of its ability to provide the additional funds required for the implementation of construction works.
9. The applicant should be solo.
10. Mortgage the entire land owned or granted and the building thereof subject to insurance for the benefit of the Authority until the repayment of the loan.
11. Presenting a solvent sponsor.
12. The Authority shall not apply for a loan to build a house or a loan to buy a ready house unless the loan is fully repaid.