Property is a long-term investment. It’s an asset that can be turned into liquid form whenever it is needed. Spent money on the property can be recovered within 1-2 years. The value of the property globally is getting increased according to the current economic scenario. Dubai is getting developed technologically and financially, to make investments in property in Dubai.
In Dubai, there are two ways to buy property: Cash, and Mortgage. Cash investment is more cost-effective and mortgage allows you greater flexibility in terms of finances.
Who Can Qualify For Mortgage In Dubai?
Whether you want to buy a flat in Dubai or an apartment. You can apply for a mortgage and loan in Dubai if you are meet this eligibility criterion.
A UAE national or resident.
Aged between 21 and 65.
Have a monthly income of AED 15k (salary) and AED 25k(self-employed).
Do Note that the minimum salary to get a bank loan is verified according to the type of bank. Some banks in UAE nationals with a monthly income of at least AED 8K apply for home loans in Dubai, but it is largely subjective to policies.
Non-residents can also apply for a mortgage to purchase property for sale in Dubai. But their choices are limited as few of the banks are dealt with bank loans for non-residents.
Documents That Required To Get Home Loan In Dubai
Anyone who wants to get a home loan from a bank needs to apply for that one first. Obviously, there's paperwork required to get financed by the bank to purchase property for sale in Dubai. The requirements vary slightly from one bank to another, but for the most part, you will need the following documents to apply for a mortgage in Dubai.
A copy of visa and support.
Emirates ID.
Salary certificate for proof of employment
Proof of residence - a copy of tenancy contact or Dubai Electricity and Water Authority (DEWA).
Pay slips and bank statements for the past six months.
The latest statements of your credit cards.
If you are a nonresident to purchase property for sale in Dubai you need to have the following documents:
Copy of the passport.
Bank statements for the past three months.
How To Get Mortage In Dubai?
Want a flat or property to buy in Dubai? Below are the steps to get a mortgage to finance your home purchase:
Find A Lender
In Dubai, home mortgages are sourced through banks and must be registered with the Dubai Land Department to be legally valid. You can directly approach your bank or hire a broker to work on your behalf to get a mortgage loan in Dubai.
The broker should be up to date with the market trends as the market is changing rapidly.
They should be honest and straightforward. Not a man who is hiding fees for loans and changing the rate just before the customer is ready to close the deal.
Don't be get afraid to do competitive pricing with the broker. At worst your request will be denied and at best your request can be accepted and the broker get you the figure that you desire.
This process lets you focus on the efforts for finding the best property rather than caught up and getting stuck in the whole process of mortgage.
Choose Right Mortgage For You
There are different types of mortgages in Dubai. They fall under the category of fixed-rate and variable rates. There are several factors that hamper your decision when you are thinking of a flat o buy in Dubai. Some of the factors are:
The lifestyle of the owner.
What type of property do you want to buy.
The loan amount you are applying for.
Cash Deposit amount you can manage to pay.
Most banks have online loan calculators that allow you to input your variables and get an idea of their monthly installments under the home loan interest in Dubai.
Get A Pre-Approval Letter
A home loan pre-approval letter is an official document issued by the bank as evidence of eligibility for obtaining house finance. It outlines the maximum borrowing limit allowed to you and offers greater certainty of obtaining a home loan. A pre-approval letter shows the letter that you are willing to purchase the property for sale, and they are ready to negotiate with you. Normally, banks share the home loan pre-approval letter in 3 to 4 working days.
Find Your Dream Home
Once you have the budget and the pre-approval letter you are now all set to find your dream home. The pre-approval letter is valid for 60-90 days it depends upon the lender. This gives you ample time to find the property.
Sometimes the buyer finds their dream property after that they apply for a mortgage, but it is not a secure option. Sometimes you can’t receive the full amount to purchase the property for sale in Dubai.
Finalize Your Property Purchaser
After finding the property contact your bank o finalize the loan agreement. The bank may assign the property evaluator to gauge the value of your desired property for sale and help to make a good offer of it. Once you and the seller agree on the sale of the property, pay your deposits and decide on the completion date. On the completion, date the bank can release the amount of the loan to the seller and you become the owner of the property.
Final Thoughts
Home loans are relatively easy for UAE nationals ex-pats for UAE residents and Non-residents. There are some websites online that works as an interaction between the buyer and seller. They also connect the buyers with the banks to avail their home loans. Banks can give the pre-approval letters within 3-4 working days, after that the buyer can easily go for the search of their dream home.
Comments