A Cancellation Letter For Housing Loan is a crucial document used in the United Arab Emirates when a borrower needs to formally terminate a housing loan agreement with a financial institution. This document is typically required in scenarios such as finding better loan terms elsewhere, deciding not to proceed with a property purchase, or when the property transaction falls through. The letter must comply with UAE Federal Law No. 14 of 2018 (Central Bank Law) and related banking regulations, including specific requirements for Islamic banking if applicable. It serves as an official record of the borrower's request to cancel the loan and typically includes loan reference details, property information (if applicable), reason for cancellation, and any settlement terms. The document is particularly important in the UAE's highly regulated banking sector, where formal documentation is essential for any significant banking transaction.

1. Letter Header: Bank's name and address, date, reference number, and formal letterhead

2. Recipient Details: Full name and address of the bank/financial institution, including branch details and loan officer's name if applicable

3. Subject Line: Clear indication that this is a Housing Loan Cancellation Request with loan reference number

4. Loan Identity Details: Full details of the loan agreement including account number, loan reference number, and date of original agreement

5. Cancellation Request: Clear and explicit statement requesting the cancellation of the housing loan

6. Reason for Cancellation: Brief explanation of the reason for cancellation

7. Settlement Information: Reference to any outstanding amounts or confirmation that all dues have been cleared

8. Action Request: Specific actions requested from the bank including timeline expectations

9. Contact Information: Writer's contact details for follow-up communication

10. Closing and Signature: Formal closing, name, and signature of the account holder/borrower