CBD Mortgage

CBD has one of the strongest explicit broker-channel pricing edges on the UAE panel. Per the current KFS: <strong>Pre-Approval Fee is WAIVED (under promotion) for Brokers, Existing CBD Elite with LOR >=1yr, and Private Banking customers</strong>. Direct retail customers pay AED 1,575 (salaried) or AED 2,100 (self-employed and non-residents) in pre-approval fees that are only credited back if the full application is submitted within the 60-day validity window. For broker-channel customers, this fee is waived outright. Combined with our pre-screened completeness submissions, faster processing turnaround, and visibility of which CBD product variant and pricing tier is the current best fit, going through us is both faster and avoids the pre-approval fee. Fee-free to the borrower — our commission is paid by CBD on successful completion.

Commercial Bank of Dubai (CBD) is a Public Shareholding Company incorporated in Dubai in 1969 and licensed by the Central Bank of the UAE. Headquartered on Ittihad Street, Port Saeed, Deira, CBD is one of the UAE’s established mid-tier banks with particularly strong Dubai market presence. CBD operates both <strong>CBD Conventional</strong> (core retail banking) and <strong>CBD Al Islami</strong> (the Shari’ah-compliant banking division). For UAE home finance specifically, CBD has several distinctive panel positions: 1% processing fee (slightly below the panel 1.05% standard — saves ~AED 1,050 on a AED 2M loan including VAT); zero processing fee on buyout loans (matches FAB — only two panel lenders with this edge); pre-approval fee waived for brokers (unique explicit broker channel edge); 15% free partial payment per calendar year; and both Conventional and Islamic (Ijara / Forward Ijara) under the same umbrella.

Per the current CBD Conventional KFS, standard maximum loan amount is <strong>AED 20 million</strong> for both UAE Nationals and Expats, OR a maximum of 8 years of annual income for UAE Nationals / 7 years of annual income for Expats (whichever is lower). Single property exposure cannot exceed AED 15 million. For CBD Al Islami (Islamic), the max is AED 15-20M per finance (per the Islamic KFS). CBD’s AED 20M cap is comparable to FAB’s AED 20M standard, below ENBD’s AED 25M standard, below ADIB’s AED 30M, and above Mashreq’s AED 15M. For loans above AED 20M, CBD Private Banking handles bespoke cases but is a narrower segment than the Private tiers at FAB, ENBD, or HSBC. For UHNW buyers acquiring at AED 25M+ scale, we typically route to ADIB (AED 30M standard), ENBD Private Banking, or HSBC Private.

Per the current KFS, CBD’s standard mortgage entry requires: <strong>Salaried applicants — minimum AED 12,000 monthly income, minimum 6 months service</strong>. <strong>Self-Employed applicants — minimum AED 20,000 monthly income, minimum 3 years in business</strong>. Minimum age: 21 years. Maximum age at loan maturity: 70 years UAE Nationals and Self-Employed Expats / 65 years salaried Expats and non-residents. Debt Burden Ratio ceiling: 50% (30% for pensioners). CBD’s AED 12,000 salaried minimum is above ADIB’s AED 10,000 (with salary transfer) but in line with most other panel lenders. For the self-employed, CBD’s AED 20,000 monthly income requirement is on the stricter side vs some panel lenders. UAE residents and non-UAE residents are both eligible to apply.

Per the current KFS, CBD home finance rates <strong>start from 4.29% per annum (indicative)</strong> with actual rate communicated through offer letter. Two rate structures: (1) <strong>Fixed & Variable Combination</strong> — interest rate fixed for an introductory period of 1/3/5 years, then variable (EIBOR + CBD fixed margin) for the remaining term; (2) <strong>Day One Variable rate</strong> — interest variable for the entire loan term, linked to EIBOR + CBD fixed margin. Interest is calculated on reducing balance monthly, in line with UAE Central Bank guidelines. CBD’s 4.29% starting rate is on the higher end of the panel vs FAB and HSBC promotional 3.99% starters — CBD is typically more competitive on the processing fee side (1% vs 1.05%) and specific product terms rather than headline rate. The current panel-position of all lenders changes frequently; see our <a href="/uae-mortgage-rates/">UAE Mortgage Rates page</a> for the live comparison.

Per the current KFS: "Processing Fee - 1% of Approved Loan amount (VAT is applicable) with Minimum of AED 3,150. <strong>Buyout: Nil</strong>, customer seeking additional equity i.e. Buyout & equity, 1% processing fee applicable on the Equity release/incremental amount (VAT is applicable)." This means for a straight buyout (refinancing an existing mortgage from another UAE bank to CBD with no additional cash take-out), CBD charges ZERO processing fee. CBD and FAB are the only two UAE panel lenders with this zero-buyout-processing-fee edge. On a AED 2 million refinance, this is ~AED 21,000 saved versus most other panel refinance options. If you’re taking additional equity on top of the buyout (combined refinance + top-up), the 1% processing fee applies only to the incremental equity-release portion, not the entire new loan amount. For buyout refinance customers choosing between CBD and FAB, the main differentiators then become grace period (FAB offers up to 180 days UAE National buyout grace), partial payment flexibility (CBD offers 15% free annual vs FAB’s per-prepayment 1.05% fee), and existing relationship with the bank.

Per the current KFS, CBD’s processing fee for new-to-bank loans is <strong>1% of the approved loan amount (VAT applicable) with a minimum of AED 3,150</strong>. This is slightly below the panel 1.05% standard (FAB, ENBD, Mashreq, ADIB all at 1.05%). On a AED 2 million loan, 1% + 5% VAT = AED 21,000 vs panel standard 1.05% + 5% VAT = AED 22,050 — CBD saves approximately AED 1,050 on this scale. On a AED 5M loan, the saving is approximately AED 2,625. Not a dramatic difference, but a real cost advantage for borrowers specifically comparing CBD to other panel lenders where other terms are similar. Note: pre-approval fees (AED 1,575 salaried / AED 2,100 self-employed/non-resident) are credited against the processing fee if the full application is submitted within the 60-day pre-approval validity — or waived outright for broker-channel submissions.

CBD Al Islami is CBD’s Shari’ah-compliant banking division, operating under its own brand (dedicated customer service line 600 527223, dedicated website cbdislami.ae) under the supervision of CBD’s Internal Sharia Supervisory Committee (ISSC). CBD Al Islami Home Finance uses two Shari’ah structures: <strong>Ijara</strong> (lease-to-own) for ready properties — you provide an irrevocable promise to lease, CBD purchases the property from the seller, then signs an Ijara agreement to lease it to you. Property is sold/transferred to you at the end of the Ijara term (or earlier) upon satisfactory completion of payments. <strong>Forward Ijara</strong> for under-construction properties — you assign your Sale and Purchase Agreement with the developer to CBD; CBD signs a Forward Ijara agreement with you; the lease commences once the property is completed and handed over. Monthly periodic lease rental has three components: Fixed Rental (principal amortisation), Variable Rental (profit calculated as Fixed Rental Outstanding × Finance Rate × days / 365), and Supplementary Rental (based on service-agent expenses, including Property Takaful). Approved by the ISSC with fatwa documentation available at cbdislami.ae.

Per Shari’ah principles, Islamic banks cannot earn income from late payments as this would constitute riba (interest on debt). CBD Al Islami instead uses a <strong>Donation Amount (Contributed to Charity)</strong> capped at <strong>maximum AED 700</strong> for late payments. The customer irrevocably undertakes to make the donation if an installment is not paid by the due date. Critically, the bank (under supervision of its Internal Sharia Supervisory Committee) is required to pay this amount <strong>to a charity designated by the bank</strong>, after deducting the actual cost incurred toward collection. This differs from Conventional CBD where late fees go to the bank directly. For customers who want their late-payment penalties going to charity rather than bank revenue, CBD Al Islami provides this Shari’ah-grounded treatment.

Per the current KFS, CBD offers <strong>Free up to 15% of the outstanding amount once per calendar year</strong> for partial settlement. Partial payments exceeding 15% are charged 1% capped at a maximum of AED 10,500 (VAT applicable). On the UAE panel: ADIB and DIB offer 30% free annually (joint-highest), HSBC 25%, ENBD 20%, <strong>CBD 15%</strong>, Mashreq varies, FAB charges 1.05% on every partial. So CBD’s 15% sits mid-pack — less generous than ADIB/DIB/HSBC/ENBD but materially better than FAB’s per-prepayment fee approach. For a borrower with an AED 2M loan expecting to make lump-sum overpayments of up to AED 300k annually (15% of outstanding), CBD’s free threshold covers this fully without fees. For borrowers expecting to pay more aggressively (above 15% per year), ADIB or DIB’s 30% free threshold is more borrower-friendly.

Yes — this is a specific CBD product edge that’s uncommon on the UAE panel. Per the current KFS, CBD’s mortgage products include: <strong>"Invest/Refinance Loan Plots in Dubai with ‘select developers’ for Expatriates"</strong>. Most other UAE panel lenders restrict plot land finance to UAE Nationals only (via dedicated UAE National land finance products like ENBD’s or ADIB’s). CBD’s offering of plot finance in Dubai for Expatriates (with specific developer partner approval) opens a route that’s harder to access elsewhere. CBD also offers <strong>"Invest/Refinance in Farm House"</strong> for UAE Nationals under both Conventional and CBD Al Islami. For buyers specifically pursuing plot development or farm/vacant land acquisition, CBD’s product range is more comprehensive than most panel competitors.

Per the current KFS, the full fee schedule is: <strong>Pre-Approval Fee</strong> AED 1,575 (salaried) / AED 2,100 (self-employed) / AED 2,100 (non-residents) — WAIVED for brokers, Existing CBD Elite with LOR >=1yr, and Private Banking customers. Credited against processing fee if full case submitted within 60-day validity. <strong>Processing Fee</strong> 1% of approved loan amount (min AED 3,150) for new-to-bank. ZERO on buyout. <strong>Penal Interest / Late Payment</strong> AED 200 per past due occurrence + 2% of delayed amount, total capped at AED 700 (Conventional) OR Donation Amount max AED 700 to charity (CBD Al Islami). <strong>Early Settlement</strong> 1% of outstanding or AED 10,500 whichever less (both same-bank and buyout to another bank). <strong>Partial Payment</strong> free up to 15% annually; 1% capped at AED 10,500 above 15%. <strong>Revalidation of conditional approval / Pre-approval</strong> AED 525 (standalone, not credited). <strong>Amendments to offer letter</strong> AED 1,050 (standalone). <strong>Life Insurance / Takaful</strong> 0.01167% per month on outstanding (3 provider options). <strong>Property Insurance / Takaful</strong> 0.060% per year (3 options). <strong>Property Valuation</strong> AED 3,150 (residential single property). <strong>Liability Letter</strong> AED 89.25. <strong>Clearance Letter Reissuance</strong> AED 99.75. <strong>NOC to Rent Committee/RERA/Developer</strong> AED 157.50. <strong>Copy of Repayment Schedule</strong> AED 78.75. <strong>Copy of Offer Letter/Mortgage Contracts/Title Deed</strong> AED 105 per document. <strong>Amendments to existing loan structure</strong> AED 3,150. <strong>Property swaps administration</strong> max AED 1,386 (valuation included). All fees VAT inclusive except Life Insurance/Takaful.

The KFS provides this illustrative APR example: starting from 4.29% p.a. (3-year fixed rate base) + 0.10% amortised processing fees (1% + VAT spread over 25 years) + 0.14% monthly life insurance premium (0.01167% × 12 months) + 0.06% property insurance = <strong>4.59% APR</strong>. The APR represents your true total cost including all mandatory fees and insurance, calculated against the maximum tenor. For CBD Al Islami, the equivalent "APR" (which represents total impact on financing including supplementary rental for Takaful, due diligence and documentation fees based on maximum lease term) calculates to the same 4.59% on the KFS illustrative basis. Your actual APR will differ based on your specific rate, tenor, chosen insurance provider, and whether you qualify for broker-channel pre-approval fee waiver.

CBD is typically a strong UAE panel option for: (1) <strong>Buyout / refinance customers</strong> — zero processing fee on buyout (matches FAB), 1% on new money below panel standard, and 15% free annual partial payment allowance that FAB doesn’t offer; (2) <strong>Broker-channel customers</strong> — pre-approval fee waived outright, unique explicit edge; (3) <strong>Expats wanting plot land finance in Dubai</strong> — CBD offers plot finance in Dubai with select developers for Expats, unusual on panel where plot finance is typically UAE Nationals only; (4) <strong>UAE Nationals seeking farm house or land finance</strong> — CBD covers both Conventional + Islamic farm house products; (5) <strong>Mid-sized loan amounts (up to AED 20M)</strong> — CBD’s cap is comparable to FAB; (6) <strong>Dubai-focused buyers</strong> — CBD’s historical Dubai positioning gives strong local market knowledge and relationships; (7) <strong>Customers wanting Islamic finance with charity-donation late fee treatment</strong> — CBD Al Islami’s donation-to-charity structure. We assess fit at scoping and compare CBD against the broader panel.

Honest flags where another panel lender typically fits better than CBD: (1) <strong>Loans above AED 20M</strong> — ADIB’s AED 30M standard panel cap is the more straightforward route; ENBD standard goes to AED 25M; FAB Private handles above-cap bespoke. (2) <strong>Lowest-starting-rate shoppers</strong> — CBD’s 4.29% starting rate is above FAB and HSBC promotional 3.99% starters. (3) <strong>Borrowers expecting frequent partial lump-sum overpayments above 15% annually</strong> — ADIB and DIB offer 30% free annually; HSBC 25%; ENBD 20%. (4) <strong>Entry-level mid-market applicants at AED 10-12k salary</strong> — ADIB offers AED 10k minimum with salary transfer (lowest panel entry); CBD requires AED 12k. (5) <strong>UAE Nationals under the MBRHE scheme</strong> — DIB offers zero profit rate on amounts up to AED 1,000,000. (6) <strong>UHNW buyers wanting Private Banking tier integration</strong> — CBD Private Banking is a narrower tier than ENBD Private, HSBC Private, or FAB Private; UHNW UAE acquisitions typically route to those three. (7) <strong>Borrowers prioritising included Property Takaful</strong> — ADIB pays Property Takaful for full tenure (unique). We identify the right fit at scoping — our role is to find the best match.

Per the KFS, CBD provides a cooling-off period of 5 complete business days from the date of signing the KFS, during which you can decide whether to continue to avail the mortgage facility you have applied for. If you wish to cancel the mortgage during this period, you contact CBD’s Customer Service Desk and place the request for cancellation; the Bank refunds all related Fees and Charges in full. After the 5-business-day cooling-off period, you are considered to have provided consent in accepting the mortgage and abiding by the general Terms and Conditions along with applicable Fees and Charges published on cbd.ae. The Bank requires a surveyor to evaluate the property from an approved vendor at published fees (property valuation AED 3,150), and these third-party charges are non-refundable even if you cancel during cooling-off. This matches the UAE Central Bank Consumer Protection Regulation standard across all panel lenders.

For complete, straightforward applications submitted through broker channels with the pre-approval fee waived, CBD pre-approval typically runs 3-5 business days. Pre-approval validity is 60 days per the KFS — you have this window to complete the property identification and submit the full application. Full timeline from pre-approval to drawdown runs 3-4 weeks for standard UAE-resident applications: week 1 pre-approval and property identification, week 2 formal application and property valuation, week 2-3 offer letter issuance and 5-business-day cooling-off period, week 3-4 Trustee centre registration and drawdown. For non-resident applications, timeline typically extends to 4-5 weeks for additional income verification. For CBD Al Islami, timeline is comparable to Conventional — CBD Al Islami uses the same underwriting infrastructure with the ISSC adding structural fatwa approval for Islamic cases. For CBD buyout transactions, the pre-approval fee waiver + zero processing fee combination accelerates the economics of the refinance decision.