ADIB inaugurates UAE’s first long-term, fixed-rate home finance

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Abu Dhabi - Abu Dhabi Islamic Bank (ADIB) has launched Istiqrar as the first long-term and fixed-rate home finance in the UAE, according to a press release.

Istiqrar aims to improve customers’ lives through steady and fixed monthly payments during the payment period, contrary to floating-rate home financing.

ADIB elaborated that the rates of the new offering start from 4.89% for five years and can reach up to 20 years.

Global Head of Retail Banking at ADIB, Amit Malhotra, commented: “Istiqrar is an important milestone not just for ADIB, but for the UAE as a whole. Given the uncertain rate environment, we observed an increasing demand from our customers for a fixed-rate home finance option”

Malhotra added: “Istiqrar has been introduced to help in their financial planning and optimise their household budget. Our aim is to continue leveraging customer insights to introduce new offerings that support our customers’ goals of home ownership.”

Home finance is a long financial obligation, ADIB noted, adding that the choice between a fixed-term and floating-rate scheme is critical for every homebuyer.

In the first quarter (Q1) of 2023, the UAE lender achieved net profits after Zakat and tax of AED 1.10 billion, compared with AED 715 million in Q1-22.