Dubai! The thought if this amazing city arouses imaginations of the great weather, shopping, employment opportunities, social amenities and scenes, some of the best jobs on the planet and perhaps the hope of living in a place that is close to paradise! Mortgage offers Dubai provides you with the opportunity to fulfill your dream of living in Dubai and being able to own your dream home.
The million-dollar question is whether it is cheaper to rent than buy a home in Dubai. Research has shown that it is, in fact, cheaper to own a home than to rent one in Dubai; especially if you are living in Dubai for the long-term. So, that is what the interesting aspect of real-estate in Dubai.
Buying your dream home or refinancing your existing loan in Dubai can sometimes be frustrating and complicated. Owning a home in Dubai does come with high upfront costs such as the mortgage down payment – which is normally 25% of the property price if it is your first home in the United Arab Emirates (UAE) – Dubai Land Department Fee, broker’s commission, mortgaging processing fee, mortgage valuation fees, and other overheads associate with the mortgage administration. This sounds exorbitant and is the reason to consider various mortgage offers in Dubai.
Some of the best mortgage deals are now available in Dubai and the wider UAE. Current mortgage offers in Dubai are at the lowest rates ever, now available to both salaried and self-employed residents; with the option to pay interest only during the first five years!
Other banks and financing institutions work in partnership to provide interesting mortgage deals to new homeowners. It means that it is possible to get new home financing deals, as well as a re-mortgage where you get to have a review of your existing mortgage – especially if you are paying a higher interest – to check if there are more cost-effective alternatives.
Also, lowest long-term mortgage offers in Dubai with two to five-year fixed rates are available guaranteeing long-term security to homeowners. Additionally, within UAE there are low-interest mortgage deals for non-UAE residents, some with Equity Release options, especially when someone borrows against the value of an existing property.
Non-residents looking to buy property in Dubai can get financing of up to 50% of the property value from specific financing institutions, with little documentation.
So, what are the steps towards securing the best mortgage offers in Dubai? The following simple suggestions can lead you closer to your dream home:
- Get the right advice from an independent and trusted professional mortgage consultant. This will save you time, money and potentially the likelihood of bad decisions and future headaches. A mortgage consultant can direct you to the best mortgage deals and mortgage offers in Dubai; based on your income level, home ownership preferences, suitable loan repayment rates and refinancing options. The UAE Edition of The National magazine recommends getting your best mortgage offers in Dubai before you start looking for a home to buy in earnest. Once you know the amount of financing at your disposal, then you will be more confident when considering your home price range.
- Assess your general financial health and ability to service the mortgage. Your mortgage consultant will advise you on the best mortgage offers in Dubai based on your current debts and other financial obligations. Under the UAE central bank rules, your monthly mortgage installments and other debt repayments should not consume more than 50% of your income. A mortgage consultant can also help you with mortgage application forms, mortgage insurance, salary transfers, liability letters and other paperwork involved.
- When working out the mortgage amount, remember to also calculate the mortgage set-up fees. These are fees imposed by the financing institution or bank and may include an arrangement fee – usually 1% of the mortgage value – a stipulated valuation fee; and a compulsory life or household’s insurance. Your mortgage consultant should guide you through the expected mortgage set-up fees.
- Carefully consider the kind of mortgage you want to take. You will need to choose between the fixed rate – for two to five years – or variable mortgage rate. The most popular mortgage offers in Dubai are the two to five-year fixed rate mortgages. The main characteristic of fixed rate mortgages is that they offer short-term measure, but do not provide you with the bigger picture of the long-term loan repayment journey. Involve your mortgage consultant to help you evaluate the variable rate by including both the base rate and the margin after the fixed period to enable you to calculate and arrive at a well-thought-through alternative. It might be worthwhile for you to compare various mortgage companies first before arriving at the best mortgage offers in Dubai. For example, finding a good mortgage deal from one dealer can help you find a better deal from another.
- Current mortgage offers in Dubai are much cheaper – at an average of 3.8% – than before the financial crisis when mortgage repayment rates were as high as 9%. To enjoy these offers, it is important to consider your social status too. You will be better placed if you have lived in Dubai for a while and have a stable job or alternative source of income, a family and are committed to the locality. If you are single and have lived in Dubai for just a few months, getting a mortgage can be difficult. Also, banks do not lend to two unrelated people whether partners or friends. However, they do lend to singles.
- Once you have found your preferred financier, discuss other existing mortgage repayment alternatives with them. For example, paying your loan earlier with a reducing foreclosure charge; or borrowing more money later, if there is an opportunity for a top-up loan from your own bank.
To conclude the matter, having a house is not only limited to the formalities of these mortgage and other money related things. You need to catch up with a reliable agency to make the deal fruitful for you.
Do not wait! Enjoy the best mortgage offers in Dubai today!
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