Individuals require paying different sums of fees for buying a property in Dubai. 4% real estate, 2% Mortgage registration, and 0.25% plus trustee and title deed fee must be rendered respectively. It should be kept in mind that bank charges differentiate from bank to bank.
As per the provision and submission of essential documents, the duration for employed applicants is between 3-5 working days and 10 working days for self-employed professionals.
Mortgage broker plays a vital role to bring best of the deals from the market for you, as they have access to all mortgage deals in the market from different banks, so they can bring the best which suites according to your profile.
the range of property valuation cost in the UAE differs from bank to bank. Applicants must seek consultation to prevent themselves from falling in a pit.
For gaining higher amount for mortgage, it becomes essential to reduce or close the credit cards that are not used. Rest it will be as per income eligibility criteria.
Yes, Banks acquire professional services of Al Etihad Credit Bureau that collects the data of different kinds of loans, credit card facilities, and credit score. Which helps banks to have better idea on the credit history of person. But bank seeks approval/consent from person to go through such a checks
The borrowing amount entirely depends on factors like gross income (salary), existing liabilities, and existing personal circumstances. You can enquire more details by getting in touch with mortgage consultant.
Title Deed is a document. It is registered at the land department and tells the ownership of the plot/land. If an individual purchases land/plot through mortgaging then the information will be etched as Owning The Property. The original document remains under the possession of bank until the mortgage has been repaid.
Yes! A married couple can be joint applicants on a property even if one of the partners doesn’t have a fixed source of income. They must have the capability to repay the loan.
No, there is no such provision or clause stating the borrowing more than 80% for expats of the property price. But, yes you can avail finance on land department and real estate charges as a part of mortgage.
UAE is one of the best places to invest, well connected globally, Even the person who is not a resident in UAE can purchase property and also have facility to avail mortgage from banks in UAE. This is the beauty of this place. Plus your investments are totally secure.
Yes, it is essential to have life insurance for acquiring a mortgage in UAE. Most banks try offering their in-house insurance policies. It is chargeable.
Your mortgage will need to be protected from the coronavirus pandemic for a short period of time.
If you already have a mortgage, continue to pay your monthly installments as usual. If you are experiencing financial difficulties that are affecting your ability to repay your mortgage, we recommend that you contact your mortgage lender.
The Central Bank of the United Arab Emirates (CBUAE) has launched an AED 100 billion stimulus package in response to the coronavirus pandemic. The circular announcing the package stated that many customers may "face temporary liquidity pressures due to the outbreak of the COVID-19 pandemic". In response, CBUAE ordered banks to provide temporary assistance to their customers for up to six months.
For those of you who are currently completing the purchase of property with a mortgage, we hope that this will continue as usual because the bank is still operating. If you have any issues or concerns, don't hesitate to ask our team for advice.
The situation is constantly changing and this information is correct at the time of writing.
Flat rate and fall rate are two methods of calculating mortgage interest.
Flat rate interest applies if the interest rate to be paid remains the same for the term of the loan, because it is always calculated in relation to the initial loan amount (principle).
A decreased interest rate is when the amount of interest that must be paid takes into account the payments made, so it is calculated based on the remaining loan amount or outstanding balance rather than the original principal.
Sometimes a flat rate can be advertised at a lower and more attractive rate than the reduced rate. When Taking out a Mortgage It is important to check with your bank or mortgage broker to see if a fixed or reduced rate is applied.
For a detailed description of fixed and reduced rates kindly contact us at https://www.gdsmortgage.com/contactus
Most banks calculate affordability a little differently, but the general rule is that they only account for 50% of your monthly income when calculating.
From that 50%, they will then reduce any other loan commitments you have (for example, car loans, personal loans, and approximately 5% of all credit card limits) to maximize your availability.
They then perform a stress test and apply a stress interest rate that varies between 3.5% and 8
A security clearance is the type of guarantee required by any bank in the United Arab Emirates when they offer credit of any type, including credit cards, personal or car loans, or mortgages.
Banks require you to write an undated check covering at least the full amount of the loan.
In the United Arab Emirates, a bank security check is required as it is used in cases where the borrower does not pay the mortgage. In this case, the bank will issue a check, and if it comes up, they can file a lawsuit to have the property confiscated to pay off the outstanding debt.
This is not much different from other countries where banks state in their contracts that they can return the property if the customer does not pay the mortgage.
If your employer pays you housing benefits, this can be taken into account when applying for a mortgage.
For example, if you are currently living in company-provided accommodation and your contract or salary statement states that you will receive housing allowances when you leave the provided accommodations, the housing allowances paid to you may be offset. for your mortgage.
You will still need the required down payment, but grants can increase your affordability and therefore, in some cases, increase the amount of loans you can borrow.
Bonus income can be taken into account when applying for a mortgage. If it's a guaranteed bonus listed in your contract or payslip, it's likely to be accepted, but discretionary bonuses may also be considered.
A permit certificate, usually abbreviated as NOC, is a type of legal document issued by an organization or individual showing that there is no objection to any of the points made in the document.
When buying property in the United Arab Emirates, a NOC is usually required from the developer who gives the property clear rights and certifies that all changes to services and utilities have been paid for. In this case, the NOC indicates that the entrepreneur has no objection to someone else buying the property.
You may be able to get insurance to cover you if you can't pay back your mortgage because of an accident, illness, or unemployment (this may include layoffs). This type of policy is not available through your bank when you take out your mortgage; You will need to speak to an insurance advisor to arrange for this type of policy. We can contact you with an insurance advisor if this is something for you.
Please note that this type of insurance is separate from the life insurance you need for a UAE mortgage.
Unscheduled funding is available and is something we can help with. It is important to note, however, that off-plan mortgages are often limited to projects undertaken by larger, more established developers.
Some banks allow a portion of the cost of purchasing a property to be added to the mortgage, which will help save significant upfront costs. Our mortgage broker can provide more information on this.
Find out here about the cost of buying a property and the costs that may be incurred as part of the buying process.
Yes, it's generally fairly easy to get equity (or money) in your property as a non-resident. Like an offshore mortgage, this process requires minimal documentation and you can forego up to 55% of the property's value which can be used for other purposes.
Yes, mortgages are available for final payment to developers. Any payments that have been made to the developer will be considered part of the first payment.
Property insurance will be charged by banks to cover property This can vary bank to bank, but in most cases conforms to the bank's internal guidelines and amounts to about 0.04% of the property's value, which is typically acquired annually.
Overpaying your mortgage in the UAE depends on the bank you take the home loan from.
Basically, most banks have the right to make an unpaid overpayment of up to 50% of the outstanding balance after you take out the mortgage. In some cases, if you have a fixed-rate mortgage, the bank won't allow any more payments until the fixed-rate period expires.
Your mortgage broker can provide further advice on this.
Hak Milik is where you buy the property in full (whether you use a mortgage or cash) so that you own the property itself and the land. A lease is when you acquire property rights for a limited period of time, usually around 99 years.
Rent property is not common in Dubai and the United Arab Emirates, but there are some areas where you can buy a rental apartment, such as: B. Silicon Oasis and Green Communities.
A conventional mortgage is where your loan payments are combined with interest payments to the bank, this is an advantage to borrowing money.
Islamic mortgages differ from traditional mortgages in that Sharia law prohibits accruing interest on loans. In this case, the bank will buy the property in your name and lease or lease it back to you at a profit.
For better understanding you can contact your mortgage consultant
EIBOR is Emirates' proposed interbank rate, which is the rate at which banks lend each other credit. EIBOR rates change daily and can be viewed here on the Central Bank's website.
The reverse rate is the rate at which your mortgage "returns" after a fixed rate mortgage expires. Like the variable interest rate on a mortgage, the interest rate is usually tied to the EIBOR rate with the interest rate added by the bank.
With a fixed rate mortgage, the interest you pay on your mortgage remains the same (fixed) for a certain period of time, usually between 1 and 5 years. After the fixed interest period expires, in most cases you will switch to a reversal rate.
A floating rate mortgage is when the interest rate you pay is tied to an EIBOR with a fixed rate of 1, 3 or 6 months added by the bank. This means that the interest rate you have to pay may go up or down over time, depending on the EIBOR. For example, if the EIBOR in month 1 is 2.0% and the fixed margin applied by your bank is 1.49%, then the floating interest rate you pay is 3.49%. If the EIBOR has increased to 3.0% in the 6th month, your variable interest rate changes to 4.49%.
Yes, spouses can apply for joint property even if one of the applicants is not working. As long as the applicant proves that he is able to repay the home loan.
For more information on shopping with your partner, please visit https://www.gdsmortgage.com/contactus
Yes. Life insurance is mandatory for every mortgage in the UAE. In most cases, the bank that lent the money to buy your property will require you to take out internal life insurance to take out the mortgage. But if you have exiting life insurance with you. You can ask for details if that can be assigned to your mortgage, mostly it depends upon banks policies and guidelines.
The Memorandum of Understanding is a memorandum of understanding and is part of the buying process. This is an agreement made by a real estate agent, signed by you and the seller, that sets out the terms and conditions for buying the property. We will always check the Memorandum of Understanding on your behalf before you sign it.
Yes of course! Banks have different preferences when it comes to applications for employees and self-employed. We have extensive experience working with self-employed clients and are familiar with banks that rate this candidate positively.
The mortgage approval process is the first step in obtaining a mortgage and can take up to 5 working days. However, note that obtaining prior approval may take longer depending on the bank used and the complexity of your case.
Once the pre-authorization is guaranteed and you are ready for the property you wish to purchase, we will manage the rest of the process on your behalf until it is complete.
We recommend that the first step in obtaining a UAE mortgage is to talk to one of our mortgage Consultant.
In the initial meeting, we will determine your situation and profile as per requirements. Based on this advice, we can recommend the mortgage product and guide you through the pre-approval process.
Once you have found and finalized the property you wish to purchase, we will work on your behalf with the bank to receive a final offer and manage the entire process.
Yes, all banks will check your credit before approving a mortgage. The credit bureau is called the Al Etihad Credit Bureau and you can get your own credit report by downloading the app and paying a small fee.
The documents required may vary depending on your circumstances, but our mortgage Consultant can discuss them with you.
In general, we require the following documents for your mortgage:
A copy of your passport, visa and emirate identity card
Salary certificate addressed to bank
Salary slips and bank statements for the last six months
Latest credit card statements
Exiting loan details like: Personal loan, car loan, If any
Under central bank regulations, you are not allowed to take out personal loans against a down payment. However, personal loans are allowed to cover the associated costs.
The minimum down payment for properties under AED 5 million is 20% for expats or 15% for UAE citizens. The minimum down payment for properties above AED 5 million is 30% for expats or 25% for UAE citizens.
The size of the loan mainly depends on your income and liabilities. You can use a mortgage availability calculator to solve this.
If the purchase price of the property is less than AED 5 million, the maximum loan amount (LTV) for expats is 80% and for UAE citizens it is 85%. For properties above AED 5 million, this reduces LTV by up to 70% for expats and up to 75% for UAE citizens.
Yes, the process is relatively easy for non-residents to get a mortgage in the UAE. If you are not a resident and wish to take out a mortgage in Dubai, Abu Dhabi or another emirate, we require quarterly bank statements to show your availability and a copy of your passport.
Yes of course! For your first purchase, you can borrow up to 80% of the property's value if the property's value is less than AED 5 million. If the first purchase is more than AED 5 million then as an expat you can borrow up to 70% of the property value.
Almost anyone can take out a mortgage in the United Arab Emirates, as long as you can provide proof of your income. Income can come from a variety of sources including salaries, commissions, and rental income. Contact one of our mortgage consultant to discuss your specific situation.
There are certain costs associated with purchasing a property in the United Arab Emirates, which can vary slightly depending on whether you are in Dubai, Abu Dhabi, or another emirate. The table below shows the total fees you will have to pay in addition to the cash deposit (or deposit).
Property management fee 4% * of the purchase price plus 580 AED (Abu Dhabi 1% -2%)
Agent fee 2% * of purchase price
Mortgage registration fee 0.25%* of mortgage taken plus AED 290
Bank contract fee 0 to 1.5% * of the loan amount
Guardian Fee AED 4000 *
Evaluation fee AED 2500 - AED 3000 *
Contacting the bank directly may not have the best mortgage deal for your situation and they will focus on showing you the benefits of their product.
But when you consultant us as mortgage broker, our team make sure that you can get one of the best deals available and suitable to your profile, which helps you to make the right decision.
The advantage of using one of our mortgage brokers is that we can provide you with unbiased, expert advice to help you find the best mortgage product for your situation. We will discuss all available options with you and give you our opinion on the best option for you so that you can make the right decision.
Our mortgage consultant will guide you through the UAE property buying process and make it easy for you to get a mortgage.
A pay transfer means that your employer promises the bank that if you leave your job for any reason (for example, go to the bank where the salary transfer is made.
Some banks offer slightly preferential rates when you make a payroll transfer. Whether this interest is worth it depends on your situation and our experienced team of mortgage brokers can better advise you on this.
Yes. If you leave the UAE, you can keep the property as a rental purchase. Most banks are primarily concerned with maintaining their mortgage payments and not falling into arrears.
The main reason you need to get pre-approval is because banks have different preferences for the types of customers they borrow depending on their profiles. As a buyer, pre- approval gives you peace of mind that you can view the property and when you have found the property you wish to purchase, you can quickly proceed towards the next step
Pre-approvals also show potential sellers that you are a serious buyer and not only are shopping at displays, but can put you in a better position and help you negotiate a better price.
It is important to choose the mortgage product that best suits your situation rather than just using your own bank product as it may not be the best choice for you.
We always recommend you talk to our experienced mortgage consultants
which will help you to get access to the best of the products available in the market and competitive in approach.
Biased free approach will help you to choose from the wide rage of mortgage products available.
There are many types of mortgage products available in the United Arab Emirates.
Mentioned below some of the types:
Residential Mortgage
Investment mortgage
Mortgages for Foreigners/ Non Resident Mortgage
Commercial Mortgage/ Office Purchase
Rent Only Mortgage
Lease Rental Discounting
Fixed and Variable Rate Mortgage
Cash Out, Equity Release Mortgage
Buyout Exiting Mortgage
Interest Only Mortgage
Fixed Period Mortgage
Mortgage on Real Estate Construction
Secured and Unsecured finance
Convectional and Islamic Finance
Refinance Mortgage
A mortgage is a loan that allows you to purchase a property for residential, investment, or commercial purposes. The loan is guaranteed by the lender against the property you have purchased. The mortgage is paid to the lender in monthly installments, which usually includes an interest/profit rate and an amount proportional to the amount originally borrowed.
