If you are an expat planning to buy a property in Dubai, you should first prepare your mortgage. Assuming you're not paying in cash.
Since houses are selling like hotcakes, you must be able to make an offer promptly, or you could miss out on your ideal property.
We've compiled the top tips to help you gain a leg up on the competition. Here are six pointers to help you in obtaining the mortgage you desire.
This is where saving money really pays off. While the down payment necessary to secure a mortgage in the UAE is typically 20 percent of the property value, some homebuyers can get by with less if they have enough savings.
There is no fixed minimum for the minimum down payment for mortgages. The higher the down payment, the less the lender will require paying back in interest.
The catch is that a large down payment means more money you'll have to pay more upfront.
First, contact the bank to find out what you'll need to secure a loan. Your lender will likely require bank statements, passport copies, and other documents as proof of income and an employment letter.
A letter from your employer stating that you have been employed for at least two years is helpful. If you're self-employed, you may need to provide even more paperwork.
Checking your credit rating before you apply for a mortgage will help you determine what you'll need to do to get a mortgage approved.
Your credit rating will show you the report that your bank, or any other lender, will see when you apply for a loan.
It sounds like a mouthful, but getting pre-approved for a mortgage means that you've secured your loan with a lender. You will have a pre-approval letter in hand before you start looking for a home to buy.
Having proof that a lender will lend to you gives you a huge advantage in this market since it means that your bid on a property is more likely to be accepted.
An expat mortgage is specifically designed to fit the needs of expats, so if you're looking to buy a property in Dubai, you're in the right place.
An expat mortgage typically has a longer term than a mortgage in your home country. It also often has slightly better interest rates.
Expats have a lot to deal with when they move to Dubai, and a mortgage is one of the things that can be easily managed with the help of a professional.
The maximum repayment period in the UAE is 25 years. The interest rate is important when looking for the best mortgage.
A longer lease is less expensive per month. Despite the fact that you pay more in total because of the higher interest rate over a longer term. In contrast, while a shorter tenure costs more, you pay less overall due to lower interest rates.
Also, consider factors other than interest. Be aware of setup, conveyancing, and penalty fees.
Finding the best home mortgage is a matter of understanding exactly what you want and understanding your options.
If you want to buy or sell a property in the UAE, you're in the right place. From the mortgage you need to the service you want, just give us a call for advice or to find a suitable property for you.
Since 2004, Dacha Real Estate has been the top property agency in Dubai, specializing in selling and renting luxury properties. Our world-class services adhere to a single guiding principle: to make business transactions as simple as possible for our clients. Contact our Dubai real estate team now!