A Close Insight Into The Market Of ‘Mortgage Dubai’

A Close Insight Into The Market Of ‘Mortgage Dubai’

The market for property mortgage in Dubai is growing exponentially on a daily basis.  If you’re looking for the best mortgage Dubai can offer, here are some pointers you may find useful.

  1. Think carefully about how a property mortgage in Dubai will affect your budget.


If you’re in the market for a mortgage Dubai offers you choices.  But as with any debt, it needs to be serviced on a monthly basis.  You need to be 100% sure that a mortgage is not going to become a debt you won’t be able to afford to pay.  The last thing you want is to see your investment slipping through your fingers before it disappears completely.  By law, in terms of a debt such as a mortgage Dubai has statutes in place that do not allow you to spend more than 50% of your income paying off all your debts.


Bear in mind that the amount of mortgage (principal and interest combined) you can secure in Dubai as a foreigner will be limited to no more than your expected earnings for seven years.


  1. Shop around for a financial services provider to secure the best mortgage Dubai has to offer.


Bear in mind that when looking for a mortgage Dubai offers several options.  The mortgage market in Dubai may not be as big as it is in countries like the US or UK, but it is growing substantially, with up to 30 lenders available to offer a property mortgage in Dubai to suit your needs.  These are both local and international lenders.  There are many offers available that are buyer-friendly.


  1. Investigate what mortgage Dubai offers that suits you.


Look for the best mortgage Dubai has to offer you.  You can choose to deal directly with the bank or work through a broker.  A property mortgage in Dubai works differently for expats than it does for locals.  Whilst entitled to a mortgage Dubai foreign residents need to be aware that banks may place restrictions on mortgages for foreigners or not offer mortgages to expats at all.


Banks that do offer a property mortgage in Dubai to foreigners may insist that lenders make sizable down payments as they are perceived as high risk compared to locals.  It is important to understand that for a mortgage Dubai uses the Loan to Value ratio: this is a percentage of the total value of the property the mortgage will cover.  The balance is a down payment (or deposit) that the buyer has to pay.  For example, if you want to buy a property valued at AED 5 million or less, the LTV ratio is 80%.  This means that your deposit will be 20% of the value and the mortgage will be for 80% of the value.


The two main types of mortgage Dubai offers are fixed and variable rate mortgages.  A fixed rate mortgage offers a set interest rate over a period of one, two, three or five years of the mortgage.  It is negotiated prior to the signing of the agreement and remains fixed for the period agreed upon.  It will become a variable rate after the expiry of the agreed-upon period.  This is a good way to ensure that the payment fits into your budget because you will know the exact amount to be paid monthly.  It is also a good idea if you suspect the mortgage rates are likely to rise as you can lock down a fixed rate before they go up.  Be aware of what the variable rate will be after the fixed rate term ends to that you are prepared for it.


A variable rate mortgage is dependent on the property market and is subject to change with immediate effect.  It is a good option if you believe the interest rate will go down soon or if you feel your budget can accommodate these payment fluctuations.


For the optimal mortgage, Dubai has to offer, investigate your options thoroughly.  This is where the services of a broker can be invaluable.  Mortgage hub Dubai is an organization that specializes in mortgage consultations which help would-be buyers to make decisions in their own best interests.  To seek the greatest mortgage Dubai can offer, think no further than engaging the services of mortgage hub Dubai.


Where possible, try to secure pre-approval for your mortgage so that you can shop for your dream home in the knowledge that the financial component of the process is under control.


  1. Don’t forget the fees!


As with all transactions, any mortgage Dubai offers will include charges and fees that must be paid.  These include valuation fees, bank processing fees, registration fees, Land Department fees and real estate agency fees to name a few.  It is advisable to know what these fees are in advance to avoid nasty surprises that threaten to ‘break the bank’.  If you engage the services of a broker such as a mortgage hub Dubai, you stand a far better chance of being aware of all the fees and charges you will incur during the purchase of your property.


  1. Have your documents at the ready.


In securing the best mortgage Dubai can offer you, bear in mind that you will have to provide documentation to the lending institution to have your mortgage approved.  It is advisable to have these documents available immediately as any delay in providing documents will prolong the mortgage application process.  You will need to submit a valid passport copy, your visa (for expatriates), your Emirates ID, proof of salary, 6 months’ bank statements and a full disclosure of all debts you are liable for.  Lending institutions may request additional documents to ensure your eligibility for a mortgage as well as determining your risk potential as a lender.


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