Currently, the mortgage market in the UAE is well-established, with international and local lenders offering home finance to expats. Mortgage for both residential and buy-to-let loans are accessible to expatriates living in the UAE, although their criteria can be different. There is most suitable destination for the expats is W Residences Downtime Dubai, these waterfront apartments are on the Western Crescent of the Palm Jumeirah.
Who can get a mortgage in the UAE?
Foreign purchasers can get a mortgage in the UAE but need to fulfill certain criteria. You will need to be in your present job for a minimum of six months or a year, liable on the area you are purchasing and your lender’s instructions.
Self-employed mortgagors will need to have been administrating their business for a minimum of two years. It can also be advantageous to have a current relationship with the bank, as it will be acquainted with your circumstances. One of the chances of the system is that few banks will only accept applicants who work for particular corporations.
If your employer is smaller or less recognized, however, you might struggle to get a mortgage from some lenders even if you’re creditworthy.
Furthermore, it is significant to have a clear credit history when applying, as lenders tend to discard applicants with low or non-existent credit. Remembering this, you shouldn’t apply for a mortgage until you have checked your credit file and restored any problems. Suppose you want to get a mortgage for buying property in the Six Senses Dubai, you need to show valuable credit history.
Types of mortgages in the UAE
Mortgages in the UAE are accessible on a fixed-rate or variable-rate basis. Fixed terms are usually about five years, although they can be as short as one year. At the end of the fixed term, the agreement moves on to the bank’s flexible amount.
Fixed-rate mortgages permit you to have confidence about the size of your repayments for a set volume of time, but it’s worth considering a flexible rate deal if interest rates look like to reduce. Terms have been set at 25 years, and the mortgage will usually need to be refunded before the age of 70 years.
Mortgage rates in the UAE
Mortgage rates vary meaningfully depending on the lender, property, and monetary circumstances.
Mortgage agreement
It can be supportive to get an agreement in principle previously before creating a full application. An agreement in principle contains the bank approving your mortgage in advance of your search for a property. It then permits you to make an offer on a home within its budget. For example, you want to buy an apartment in W Residences Downtime Dubai you need to make an offer within its budget.
Documents for a mortgage in Dubai
When applying for a mortgage, the documents you will need may change leaning on the bank you are using.
Lenders will ask you about the following:
- A copy of your passport
- Proof of residence in Dubai and validation of your existing address
- Financial documents, such as salary slips, bank statements, tax returns
UAE mortgages: step-by-step
Following are the steps for taking a mortgage:
- Decide whether to contact the bank directly or use a broker
- Do your research to discover the right type of mortgage for your conditions
- Get an agreement in principle from the bank and ask for a letter confirming this;
- Find an appropriate property within your budget and make an offer
- Once you have agreed on a price, pay your deposit to assure your acquisition and agree on a conclusion date
- On the closing date, the mortgage lender will issue the funds to the seller
Expat-friendly mortgage lenders in the UAE
There are numerous lenders in Dubai; however, some won’t offer a mortgage to expatriates or non-residents. Foreign lenders are only permitted to do business in Dubai if the central bank identifies them.
Following are some of the leading expat-friendly lenders in the UAE:
- HSBC
- Mashreq
- Emirates NBD
You can consider these above lenders for taking a mortgage if you are an expats and desire to buy a property in Dubai. W residences Downtime Dubai and Six Senses Dubai are the most suitable properties in Dubai for expatriates to invest in.
Mortgage costs in the UAE
When taking a mortgage in the UAE, you have to pay charges of 0.25% of the balance to register the mortgage. Your lender may also charge you an assessment fee and need you to pay for mortgage defense insurance.
