The final offer letter (some banks call it the facility offer letter) is the document that actually governs your mortgage — not the advert, not the rate the salesperson quoted, not the pre-approval. Once signed, its clauses run for up to 25 years. Here is what to check, in the order the money matters.
1. The rate — and precisely when it stops
Confirm the rate matches what was agreed, then find the more important number: how long it lasts. A "3.99% fixed" is a very different product over 2 years versus 5. Diarise the expiry month; the clock starts at disbursement, not signing.
2. The reversion rate — the number that costs the most
When the fixed or introductory period ends, the loan moves to a variable rate, usually expressed as EIBOR plus a margin. That margin is the single most expensive line in the letter, because it can apply for twenty years to your largest debt. A margin of 1.5% versus 2.5% on a AED 1.5 million balance is roughly AED 15,000 a year — every year. Our guide to fixed versus variable rates explains how the pieces fit; the short version is: negotiate the margin before signing, not the teaser.
3. Fees — including the ones already "waived"
Check the arrangement fee (typically about 1% of the loan, commonly capped near AED 15,000), and look for a clawback clause: many "fee waived" and "cashback" offers are conditional, repayable if you settle or transfer out within a set number of years. That clause quietly changes the math of any future buyout.
4. Early settlement terms
UAE regulation caps the full early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is lower — the letter cannot lawfully exceed that, but it can add clawbacks of subsidised costs on top (see 3). Read the exit arithmetic as one package: cap plus clawbacks.
5. Partial prepayment rules
Can you make lump-sum payments? How often, with what fee, and does the payment reduce your term or your instalment? Some banks allow generous annual prepayments; some charge on every dirham. If you expect bonuses, this clause is worth real money.
6. Insurance — what is required and from whom
Banks require life insurance on the borrower and property insurance on the home, and will happily sell you their in-house policies. Check whether the letter requires their insurer or merely requires cover — external policies naming the bank as beneficiary are often accepted and meaningfully cheaper. Insurance loaded onto the loan also accrues interest for the full term.
7. Salary transfer conditions
If your rate is conditional on transferring your salary to the lending bank, the letter will say what happens if the transfer stops — usually an automatic move to a worse rate. Changing employers later can trigger this by accident; know the consequence now.
8. The validity window and conditions precedent
Offer letters expire — commonly within 30 to 60 days — and disbursement depends on conditions being met: valuation, insurance, sometimes a final liability letter from the seller's bank. Map the deadlines against your transfer timeline so the offer does not lapse mid-purchase. (Our transfer day guide shows the full sequence.)
9. The numbers themselves
Loan amount, tenure, and the resulting instalment — check they match the property, your deposit and the affordability you planned with the calculator. Banks occasionally issue letters with a shorter tenure than discussed (age caps are the usual culprit), which raises the monthly payment and can strain your 50% debt burden ratio on final checks.
If something looks wrong
Query it before signing — after signature you are negotiating against your own contract. Offer letters are corrected all the time: rates typo'd, waived fees reappearing, tenure clipped. A broker reads these letters daily and knows which clauses each bank will actually amend; if you want a second pair of eyes on yours before you commit, send it to us — reviewing offers is part of what we do, at no charge to you.