An Exciting Market To Join – Mortgage House Dubai

Mortgage House Dubai

An Exciting Market To Join – Mortgage House Dubai

Mortgage House Dubai

The property market in Dubai has never been as attractive as it currently is.  Dubai has become the central hub of Middle East business activities as well as an attractive tourist destination.  Its reputation as one of the shopping capitals of the world is also making it even more popular.

There are many housing developments being built.  A huge variety of homes are on the market.  It’s a buyer’s market with a great many investors ready and willing to buy properties.

With the mortgage market in Dubai opening up, you need to explore your options to find and buy the perfect mortgage house Dubai can offer.  Dubai is now offering mortgages to expatriates at competitive rates.

Most financial institutions are tapping into this lucrative market that has huge potential for great returns on investment for both lending institutions and lenders alike.  By law, a mortgage obtained by an expatriate lender cannot exceed their expected earnings for the next seven years.

For a mortgaged house, Dubai lending institutions may impose additional restrictions on foreign applicants and ask for a higher down payment then that asked from locals.  This is because lending institutions regard foreign lenders as a higher risk than local lenders.

When seeking a mortgaged house Dubai lending institutions will charge certain additional fees over and above the actual mortgage itself.  These include but are not limited to:

  1. Valuation fees: this applies to purchases made on the secondary property market.  Prior to applying for a mortgage in these circumstances, a valuation must be done to determine a fair price for the house.  The valuation expert will charge a fee and the bank may choose to add to it from their side.


  1. Processing, application and documentation fees: these are charged by the lender on the basis of the amount of the mortgage.  It usually ranges from 0.5% to 1% but could be even more at the discretion of the lending institution.



  1. Land Department Fees: this is a 2% fee charged to both the buyer and the seller by the UAE’s Land Department.  Many developers and sellers will choose to transfer these charges to the buyer.


  1. Bounced check charges: if for whatever reason your mortgage check bounces or you miss an installment the lender will charge a penalty fee.



  1. Pre-payment charges / early repayment charge: if you pay your mortgage off in advance the bank will forfeit some of the interest it was expecting to receive from you.  The lender will face a penalty in this event.

Factors to take into consideration when making your mortgage house Dubai dream a reality

First and foremost, you need to make a decision about what kind of mortgage you want to apply for.  You can choose between a fixed rate and variable rate mortgage.  For a mortgage house Dubai offers both for the buyer to make a selection from depending on your budget and preference.

A fixed rate mortgage will protect you from fluctuations in the interest rate but will not allow you to benefit from a decrease in interest rates.  A variable mortgage is subject to interest rate fluctuations (both increases and decreases).

In terms of a mortgage house, Dubai makes use of the LTV ratio.  This loan to value ratio may vary from one lending institution to another.

It will also depend on the value of the property, whether it is a first or subsequent property, if the buyer is a UAE national or non-national and whether the property is a ready property or an off-plan property.  Ensure you have clarity on the exact LTV ratio for your mortgage as the balance will be your down payment.

If you wish to buy a mortgage house Dubai lending institutions will do a thorough investigation of your credit history.  This will assist the lender to determine how risky it is to grant you a mortgage as your past behavior with credit is regarded as a future indicator of whether you will service a debt or not.

The less debt you have, the more attractive a proposition you will be to a lending institution  It will also help you to secure a bigger mortgage as when buying a mortgage house Dubai law does not allow you to devote more than 50% of your income to the payment of debt.

Once you’ve done your research you can determine:

  • What type of mortgage you would prefer to apply for
  • What your LTV ratio will be
  • What fees you will be subject to
  • How much debt you have to pay off monthly (bearing in mind the 50% rule)

The house mortgage calculator Dubai version that will help you make a sound decision

The best way to avoid nasty surprises and to have a good idea of what your monthly repayment is likely to be is to use the house mortgage calculator Dubai lending institutions and brokerages offer their clients.

Before using a house mortgage calculator Dubai lenders advise you to have done your research as listed above as you will need to enter this information to calculate your transaction and see if you would be entitled to the mortgage you wish to apply for.  The house mortgage calculator Dubai lenders provide will factor in all the necessary expenses and fees as far as possible and give you your monthly repayment.  You can then determine if it is within your budget to pay that debt and that it falls within the 50% rule.

If you have the opportunity, apply for a house mortgage Dubai that offers you a fantastic investment opportunity that can secure your financial future.  An organization such as Deja Vu Properties can provide you with professional advice and can put you in touch with mortgage brokers whose house mortgage calculator Dubai versions will provide you with accurate information so that you can base your decisions and judgments on known facts without any hidden expenses.

Get your foot in the door and create your own house mortgage Dubai magic!

And not to forget to take help from us at Déjà Vu Properties for finding a perfect buyer or seller for your property. They are possibly one of the best in the scene for buying or selling houses if not ‘the best’.


Read Related Articles:

Let “Can We Buy a House?” be a Question of the Past and Move Forward
Expat Mortgage Dubai: A Step by Step Process to Sort Out Things
10 Things You Need To Know Before Getting A Home Mortgage Loan
The Important Things You Didn’t Know About A Mortgage Consultant!

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