Answers to the most frequently asked questions

Home Saver

What is Home Saver Mortgage Loan?

Home Saver Mortgage Loan is a type of mortgage, which allows you to link your current account held with ADCB to the loan and earn interest on the balance maintained. The balance that you maintain in the account accrues interest is not credited to your account but is directly utilized every month as additional repayment towards your mortgage home saver loan outstanding on top of your regular equated monthly instalments. With this additional repayment, you benefit by repaying your loan faster and make significant savings on the interest cost incurred over the entire tenor of the loan.

How will I know if I am eligible for a Home Saver Mortgage Loan?

ADCB Mortgage Services are open to all eligible UAE residents (Nationals and Expatriates). All UAE residents (Nationals & Expatriates) aged 21 or older, can apply for a Home Saver Mortgage Loan. The Home Saver Mortgage Loan is also not applicable as an Islamic Loan, or on Under Construction Properties. For more details, please refer to ADCB standard Mortgage Policy.

What is a Home Saver Linked Account?

A Home Saver Linked Benefit Account, is the term that is given to your current account that is linked to your Home Saver Mortgage Loan. This is the same account in which interest will accrue each month, based on your account’s daily cash balance. The interest that gets accrued will not be credited to your current account, but will instead directly be applied as an additional repayment on top of your regular equated monthly instalments towards your Mortgage Home Saver Loan.

What is the difference between a regular Current Account and a Home Saver Linked account?

There is no difference between the two accounts; all the terms and conditions applying to a Current Account, also apply to a Home Saver Linked Benefit Account other than the accrual of interest on the balance maintained in the account and crediting and application of interest on the Mortgage Home Saver Loan as an additional monthly repayment.

Can I make deposits and withdrawals from my Home Saver Linked Account?

Yes, you can use your Home Saver Linked Account in the same manner as a Current Account including in relation to deposits and withdrawals.

Is there a Minimum Balance required on the Home Saver Linked Account?

Minimum Balance (if any) applicable to your Home Saver Linked Account, will be the same as those applying to a Current Account as set out in the Schedule of Fees.

I already have an existing current account with ADCB, do I still need to open another current account as my Home Saver Linked Account?

No, your existing current account can be linked as your Home Saver Linked Benefit Account. However, the interest that is accrued on the outstanding daily balance will only be paid towards a single Mortgage Home Saver Loan. So should you be having multiple Home Saver Mortgage Loans, you will need to open or link equivalent number of current accounts as your Home Saver Linked Benefit Account. You are only able to link one Home Saver Linked Benefit Account to a single Home Saver Mortgage Loan and vice versa.

I already have an existing mortgage loan from ADCB; can I convert it to a Mortgage Home Saver Loan?

Yes, you may convert your existing mortgage loan to a Home Saver Mortgage Loan for a nominal fee (Kindly refer to the published Standard Mortgage Schedule of Fee & Charges for more details). Your existing current repayment account will then be linked as a Home Saver Linked Benefit Account, and will start to accrue interest based on the daily available cash balance, to make the additional repayments towards your Home Saver Mortgage Loan.

What will be the interest rate that gets generated on my Home Saver Linked Account, and will it ever change?

The interest rate that gets accrued on your Home Saver Linked Account will be specified in your Approval Letter. The Bank may increase or decrease the interest rate applicable to your Home Saver Linked Account from time to time (in its absolute discretion).

Can I opt for multiple Home Saver Mortgages?

Yes, you may apply for more than one Home Saver Mortgage. Please refer to the standard mortgage policy for more details.

Will the interest rate on my Home Saver Linked Benefit Account ever stop accruing?

If you are in default of making your monthly payment obligations on home saver mortgage loan, then the interest will no longer accrue on your Home Saver Linked Benefit Account, or if your principle outstanding on your loan has fully been paid.

What happens if I have more money in my Home Saver Linked Benefit Account than the principle outstanding on my Mortgage Home Saver Loan?

If your daily closing balance in your Home Saver Benefit Linked Account exceeds the principle loan outstanding, then the interest that gets accrued will only be based on the principle outstanding of your Home Saver Mortgage Loan.

How will the Accrued Interest be applied?

The accrued interest (if any) on your Home Saver Benefit Linked Account will, on each Loan Due Date, be applied automatically by the Bank against the principle amount outstanding of your Home Saver Mortgage Loan. The interest earned on the current account balance will be applied as a prepayment on the next occurring Loan Due Date to reduce the principle amount, this will be In addition to any monthly repayment instalment due on that Loan Due Date.

Can I have more than one Home Saver Linked Benefit Account linked to a Home Saver Mortgage Loan or can I have one Home Saver Linked Benefit Account linked to more than one Home Saver Mortgage Loan?

No, only one Home Saver Linked Benefit Account can be linked to one Home Saver Mortgage Loan and only one Home Saver Mortgage Loan can be linked to one Home Saver Linked Benefit Account.

What are the different types of mortgage products that I can take under Home Saver Mortgage Loan?

Home Saver Mortgage Loan can be taken only for regular residential mortgages and for completed properties only.

How can I track the interest that is getting accrued on my Home Saver Benefit Linked Account?

The home saver benefit summary table will be a part of your monthly statement and will also be updated on internet banking as a table that will include – Benefit for the month (AED), Benefit till date (AED) (this will show the benefit from the time loan was booked till date), original maturity date, revised maturity date, Tenor Reduction (in months). The benefits and savings at the date of statement will start getting published once they exceed a value of AED 100. The revised maturity date in this table will be on account of the combined effect of prepayments made as a part of the home saver option or otherwise and interest rate changes.

Can you show me an example of how the mortgage home saver loan compares to standard mortgage loan and how does it benefit me in terms of interest cost and reduction in effective tenor*?

Home Loan - Variant Comparison Standard Home Loan Home Saver
On 25 Years Tenor
Scenario 1 Scenario 2 Scenario 3 Scenario 4
Loan Amount (AED) 1,000,000
1,000,000 1,000,000 1,000,000 1,000,000
Interest Rate Charged on Loan 3.74% 4.49% 4.49% 4.49% 4.49%
Original Loan Tenure (Years) 25 25 25 25 25
Interest Rate Paid on Account Balance 0.00% 4.00% 4.00% 4.00% 4.00%
Average Account Balance Maintained (% of Loan Amount) - 30% 50% 75% 100%
Regular Monthly Installment 5,136 5,553 5,553 5,553 5,553
Actual Installments required to be Paid 300 249 226 204 188
Total Payment towards Loan 1,540,761 1,382,610 1,254,899 1,132,741 1,043,898
Total Interest paid towards Loan 540,761 382,610 254,899 132,741 43,898
Effective Savings in Interest Cost (Even on Higher Loan Rate)
117,652 245,363 367,522 456,364
Effective Savings in Interest Cost (In % as compared to Standard Home Loan)
23.52% 49.05% 73.47% 91.22%
Effective Savings in Tenor (In Months) - How early you Own the home
51 74 96 112

*The above table is based on indicative interest rates used for illustrative purposes only and do not apply to your loan, actual rates are subject to change. The computation of the benefits and savings is based on simulated figures and a number of underlying assumptions. Please consult your Relationship Manager/or visit the nearest branch/or send “HOMESAVER” as an SMS to 2626 for a call back to ensure that you receive complete information about the home saver product.

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