Payment Plans

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Home How it works The Plan Benefits Help & FAQ General What is the Kafaalat Payment Plan? How many people are currently using the Kafaalat Payment Plan? What is the difference between the Kafaalat Payment Plan and Staged Payments? What is the difference between the Kafaalat Payment Plan and a mortgage? Application Process Who can give me advice on the Kafaalat Payment Plan? Who is eligible for the Kafaalat Payment Plan? Can a property be purchased in joint names? How many joint owners are allowed? Can a property be purchased by a company or organisation? How much can I take on the Kafaalat Payment plan? How long or short can my Kafaalat Payment Plan term be? Who will value the property? What is a KFI? Legal Is the Kafaalat Payment Plan Sharia compliant? Can I rent out the property? Can I borrow against the property? What happens if I become unemployed? What happens if I miss a payment? What do I do if my personal details change? What happens if I want to move property? What is the legal process? - Do I need a solicitor to act on my behalf? What if I buy a property with my partner and there is a divorce? Does the property continue to be in joint name? If so, what happens if one refuses to pay for the other? Do I have to take out buildings or building & contents insurance? How will the developer ensure that the property is insured and continues to be insured - does the legal agreement cover it? If I do not insure the property and then default, and there is re-possession, is there a clause allowing an off-set of any losses before the balance proceeds are handed over to me? Can I open a UAE bank account? Can a corporate body take out the Kafaalat Payment Plan? Can the property be jointly owned by an individual and a corporate body? What documentation - identity proof, residence proof and financial status proof – will I need to provide? Payment & Fees What is the minimum deposit I need to pay? What are my monthly payments going to be? How are payments made? To whom do I make my payments? Why do my monthly payments go down? Can I purchase extra shares at any point? How often will I get a statement? When are my monthly payments due? Can I change the due date of my payment? How do I setup an electronic transfer? Why does the deferred payment rate change? How often do you calculate deferred payment rate on the Kafaalat Payment Plan? Do you charge a high deferred payment rate? How do I get the balance on my Kafaalat Payment Plan? What do I do if I want to repay early? Are there early repayment charges? Can I make overpayments? What is a redemption statement? Do you offer payment holidays? What happens if I move house within a special rate period? Can I protect my payments? Do I have to pay for legal fees? Do you charge an arrangement fee and if so why? What is the Kafaalat Payment Plan? The Kafaalat Payment Plan is a payment plan that allows you to afford the property you desire and plan your finances accordingly. You can spread your payments over a longer period of time, thereby allowing you to buy a property you may only have dreamt of buying before. How many people are currently using the Kafaalat Payment Plan? The Kafaalat Payment Plan has been carefully crafted over a number of years and is brand new to the market. What is the difference between the Kafaalat Payment Plan and Staged Payments? The main difference is the ability to spread payments over a longer time-span, making properties genuinely affordable. What is the difference between the Kafaalat Payment Plan and a mortgage? In short, you own more of the property earlier and you end up paying less for it. If you add up all of the payments for a typical mortgage and all of the payments on the Kafaalat Payment Plan, the Kafaalat Payment Plan is on average 8% cheaper than a typical mortgage. Another benefit is that you are a joint owner of the property you have chosen to purchase from day one. With other products your ownership only begins when the payments end. As you purchase more shares in your chosen property your fees reduce. On average, after one third of the term on the Kafaalat Payment Plan your monthly payments are actually cheaper than on a typical mortgage. Who can give me advice on the Kafaalat Payment Plan? Only trained agents can provide you with assistance on all aspects of the Kafaalat Payment Plan. Who is eligible for the Kafaalat Payment Plan? Unlike many other products the Kafaalat Payment Plan has no restrictions regarding eligibility. The only thing we ask is that you are at least 21 years old when applying for the Kafaalat Payment Plan or you are younger than 75 years old when the Kafaalat Payment Plan completes. Persons of any nationality may apply. Can a property be purchased in joint names? Yes How many joint owners are allowed? A maximum of two people can be classed as the second joint owner. Can a property be purchased by a company or organisation? Yes How much can I take on the Kafaalat Payment plan? The Kafaalat Payment Plan is uniquely structured for each and every development. As an example, for an apartment in the luxurious Eagle Heights development you can take up to 70% on the Kafaalat Payment Plan. How long or short can my Kafaalat Payment Plan term be? The term can vary from anything between 5 years and 20 years. Who will value the property? The property will be valued by the developer, with details highlighted in your personal Key Features Illustration (KFI). What is a KFI? A KFI is a Key Features Illustration. An illustration is prepared for each individual customer taking out the Kafaalat Payment Plan, and is designed for each specific property. The Key Features Illustration highlights all of the important costs and fees associated with the Kafaalat Payment Plan. Click here to see and example KFI. Is the Kafaalat Payment Plan Sharia compliant? The Kafaalat Payment Plan has been developed with the Muslim Law Council in the United Kingdom. It is reviewed for each development, as each development has unique features. The Kafaalat Payment Plan will always be under review to meet Islamic rules. Please refer to your Key Features Illustration for specific information about Sharia compliance on your property. Can I rent out the property? Yes. Can I borrow against the property? No. What happens if I become unemployed? You must inform the Kafaalat team straight away if there are any material changes in your financial circumstances. What happens if I miss a payment? You will receive reminder correspondence to rectify the missed payment situation. However, should this eventuality re-occur, or should you fail to inform us of a change of circumstances, then legal processes may be initiated and fees will be charged. What do I do if my personal details change? Write a letter to us straight away via the contact details on your Key Facts Illustration. What happens if I want to move property? No problems! Let us know your plans and we can assist with the transfer. What is the legal process? - Do I need a solicitor to act on my behalf? For your own peace of mind we recommend that you take independent legal advice before committing to the Kafaalat Payment Plan. What if I buy a property with my partner and there is a divorce? Does the property continue to be in joint name? If so, what happens if one refuses to pay for the other? You are both responsible for maintaining your joint obligation to the Kafaalat Payment Plan. If you go into arrears charges will be made and the default process will have to be initiated, as stated in the agreement. However, you can apply for a change of ownership in the form of a Deed of Transfer. The rules of the agreement apply for both UAE and non-UAE residents. Do I have to take out buildings or building & contents insurance? Yes. How will the developer ensure that the property is insured and continues to be insured - does the legal agreement cover it? Yes the agreement specifies that the developer can insure the property and charge you, the customer. If I do not insure the property and then default, and there is re-possession, is there a clause allowing an off-set of any losses before the balance proceeds are handed over to me? Yes the agreement specifies that the developer can offset any losses. Can I open a UAE bank account? Currently UAE bank accounts can only be opened by UAE residents. However once you have taken possession of the property you can apply for a resident’s visa. Once you have a resident’s visa, you can apply for a UAE bank account. Can a corporate body take out the Kafaalat Payment Plan? Yes, but the directors will need to supply a personal guarantee in addition to the normal validation checks. Can the property be jointly owned by an individual and a corporate body? Yes, normal rules apply. What documentation - identity proof, residence proof and financial status proof – will I need to provide? This will be highlighted in the application form and will alter depending on your employment status (ie. whether or not you are self-employed).   What is the minimum deposit I need to pay? This varies according to each particular development.   What are my monthly payments going to be? This will depend upon the purchase price of the property. Your monthly payments will be highlighted in your personal Key Features Illustration and also in your Kafaalat Payment Plan contract.   How are payments made? Payments are made by sending six post-dated cheques for the following six months, or by issuing a Standing Instruction. Payment details will be highlighted in your contract.   To whom do I make my payments? All monies are sent directly to the developer. However, the process of ensuring payments are made will be handled by Kafaalat UK.   Why do my monthly payments go down? As your share of the property goes up month by month, your management/rental fee decreases. Your Key Features Illustration and Kafaalat Payment Plan contract will explain this further.   Can I purchase extra shares at any point? Yes.   How often will I get a statement? An up-to-date statement will be sent on a quarterly basis.   When are my monthly payments due? All monthly payments for every customer are due on the first day of each calendar month.   Can I change the due date of my payment? No. All monthly payments for every customer are due on the first day of each calendar month.   How do I setup an electronic transfer? You need to open an account in UAE and set up standing instruction. If this is not possible, you need to approach your own existing bank.   Why does the deferred payment rate change? The deferred payment rate changes in order to reflect the changes in global financial markets.   How often do you calculate deferred payment rate on the Kafaalat Payment Plan? The rate is calculated six-monthly, in line with the Emirates Inter-Bank Offer Rate (EIBOR).   Do you charge a high deferred payment rate? The deferred payment rate may be fixed or variable dependent on your personal illustration. The limits will be defined from the outset in your Key Features Illustration.   How do I get the balance on my Kafaalat Payment Plan? A statement will be sent to you every three months, or you can contact the Kafaalat team directly using the contact details supplied.   What do I do if I want to repay early? Let us know and we'll sort out your redemption costs and all of the paperwork - it couldn't be easier.   Are there early repayment charges? Each development will have its own requirements and you will have to refer to your Key Features Illustration to establish if there are any early repayment charges.   Can I make overpayments? Yes. You are free to buy additional shares in the property at any time during the Kafaalat Payment Plan but this may incur early redemption costs. Please refer to your Key Features Illustration.   What is a redemption statement? The outstanding balance remaining on the payment plan is your redemption figure. A redemption statement tells you what you will need to pay to complete your Kafaalat Payment Plan and own your property outright.   Do you offer payment holidays? No. But if you know you are going to be unable to pay in a particular month and you inform us beforehand, then we will be able to help get you back on track.   What happens if I move house within a special rate period? You are free to move house at any point in time. Once you indicate to Kafaalat UK that you wish to sell your property, Kafaalat UK will send you a redemption figure. This will be the balance which needs to be paid to complete the Kafaalat Payment Plan. Once all monies have been received then ownership of the property can be transferred. The new owner may be able to continue the Kafaalat Payment Plan if he/she desires, subject to the charging of a transfer fee.   Can I protect my payments? No, although this may be possible in the future.   Do I have to pay for legal fees? Legal fees safeguard your investment and ensure that you are fully aware of your obligations to the plan. You will need to pay for these fees. We always recommend you take independent legal advice.   Do you charge an arrangement fee and if so why? Arrangement fees will need to be paid once you have been approved onto the Kafaalat Payment Plan. These fees will be refunded to you if you choose not to take out the Kafaalat Payment Plan. This minimal arrangement fee allows us to ensure a fast efficient personalised service that provides you with the peace of mind of knowing the investment you have made is the perfect one for your needs and circumstances.

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