Emirates NBD launches campaign to guide and educate potential property buyers

Press release

Published July 17th, 2013 - 10:37 GMT

Al Bawaba

Emirates NBD, a leading bank in the region, announced today the launch of an innovative financial education campaign, designed to assist potential property buyers to select the best possible mortgage loan when buying a home. The educational campaign focuses on a series of tips and explains at length the finer details of home loans, interest rates, down payments and loan-to-value ratios, to position Emirates NBD as the banking partner of choice.

“Potential home buyers are bombarded with conflicting information when in the process of buying a property, and oftenfind it difficult to choose the best loan option,” saidSaif Al Mansoori,Deputy Head – Group Marketing and Branding, Emirates NBD. “We would like to make this process easier for our customers by offering expert advice via a series of easy tips, focusing on choosing the best interest rate combination, to selecting the right developer and neighbourhood.”

One of the helpful tips includes an insight into home loan selection and the benefits of choosing a loan based on the long term variable interest rate. This is in contrast to a borrower’s natural tendency to opt for the lowest rate, which may only last for a short fixed period.

The bank also offers helpful advice on how to decide the size of the initial down payment while selecting a home loan, and the significance of loan to value ratios, emphasizing the idea that a higher down payment could make future payments more manageable, while at the same time assisting in saving for unforeseen circumstances.

The importance of choosing an appropriate tenor for repayment is the subject of yet another tip from Emirates NBD. The bank underlines the idea that extending repayments over a longer term may result in reduced instalments, but will also make the home more expensive in the long term.

Other important tips include the importance of evaluating the location, developer and neighbourhood amenities before deciding on the purchase, as these factors could impact the quality of life in the short term and will be influential in determining the sale or rental value of the property in the future.

Background Information

Emirates NBD

Emirates NBD, the leading banking group in the region, was formed on 19 June 1963, when H.H. Late Sheikh Rashid bin Saeed Al Maktoum signed the Charter of Incorporation of the National Bank of Dubai (NBD) which became the first National Bank established in Dubai and the United Arab Emirates (UAE). With the blessings of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, NBD merged with Emirates Bank International (EBI) on 06 March 2007, to form Emirates NBD, the largest banking group in the region by assets. On 16 October 2007, the shares of Emirates NBD were officially listed on the Dubai Financial Market (DFM). The merger between EBI and NBD to create Emirates NBD, became a regional consolidation blueprint for the banking and finance sector as it combined the second and fourth largest banks in the UAE to form a banking champion capable of delivering enhanced value across corporate, retail, private, Islamic and investment banking throughout the region.