Under-Construction Properties

Under this product variant, customer approaches the Bank and requests for financing in order to construct a house or villa. The customer would either opt for self-construction or construction through a developer in this case.

Ajman Bank provides under construction finance for the following 2 types of properties:

1st Rank Mortgage
2nd Rank Mortgage

Features & Benefits*

Maximum Finance amount up to AED 8 million
Maximum tenure up to 25 years (inclusive of Construction period)
Finance to value of up to 50%
Financing available for Freehold & Non Freehold properties
Financing available for Residents only
Widest geographical coverage
Quick and Fast Approvals

*Terms and conditions apply

The following types of construction finance are offered under Forward Ijarah:

Istisna Purchase: In this agreement, bank appoints the customer as its contractor to construct the property. The customer is responsible for the construction and progressive payments are released to the customer on submission of completion certificates. Post completion, bank will lease the property to the customer Ijarah payments.

The progressive payments are released to the customer and the evidence of the payment to the contractor needs to be submitted by the customer back to the bank. The customer is not allowed to make any alterations in the approved construction plan prior to the bank’s approval.

SPA: If customer is buying a property from the developer and the down payment is not yet made, bank will sign the SPA (Sales & Purchase Agreement) directly with the developer. Customer will make a down payment or pay the initial payments to the developer followed by the payments from the bank till property handover.

This SPA needs to be Shariah compliant and approved by Ajman Bank Legal dept/Shariah Dept.

Tripartite Agreement or Assignment Agreement: If a customer is purchasing an under construction property from the developer and has made the down payment (or any other payment related to property) to the developer, the customer will surrender his rights on the property by way of tripartite agreement. Bank will be the new owner in developer’s records and the progressive payments (after required down payment from the customer) will be made directly to the developer till property handover. The Tripartite agreement/assignment agreement needs to be approved by Ajman Bank Legal/Shariah dept.

The following are the transactions available under Under-Construction financing:

New Purchase	Means finance to construct a property
Standalone Buyout	Means customer will transfer his existing home finance from another bank/FI to Ajman Bank
Seller Buyout	Means a transaction of buying a property in the secondary market between buyer and seller and Ajman Bank will buyout the finance of the seller from another bank or FI.