The decision is made! You’re about to step into your new house, you jingle your keys with excitement, and everyone congratulates you. The day could never be better as you are about to step into your home for the first time. Your happiness knows no bounds. What would you like to call such an experience? Well, buying a residential property in Dubai is a dream come true. But do you know what’s better? Getting pre-approved for a mortgage! You can also buy your house with cash and write it off, but a mortgage can save you your initial investment. Keen on getting a mortgage in Dubai? Read on to learn how you can fulfill mortgage requirements in Dubai & take the keys to your dream house as soon as you can!
Getting Mortgage In Dubai, UAE: An Overview
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Check Eligibility Prerequisites
It is imperative to know if you match the eligibility requirements for getting a mortgage in Dubai. Here are some of the criteria:
- Being a native or resident of the UAE.
- The applicant’s age must be between 21 – 65.
- You need to have a monthly remuneration of at least AED 15K or AED 25K if self-employed.
It is crucial to fulfill additional bank criteria, which fluctuate and vary from one bank to the other. It may also include a minimum duration of service at present employment or working for specific firms.
Furthermore, depending on the bank’s rules, the minimum wage necessary for you to obtain differs from one bank to the next.
If you do not reside in Dubai, UAE, you do have some choices for property loans. However, they are restricted.
Find a lender or mortgage provider
First, you must locate a bank to obtain a loan because mortgages in Dubai are acquired through banks. They must be registered under the Dubai Land Department (DLD) so they can be legally acknowledged.
You may either search for one or engage a mortgage broker to identify the finest banks for your needs, depending on the sorts of mortgages and incentives that banks give.
Select the Best Mortgage Plan
Usually, there are two mortgage options in Dubai. These are = either fixed-rate or variable-rate mortgages. Fixed-rate mortgages mean that the interest rate stays constant, while the latter implies that the interest rate may fluctuate (rise or fall) during the term of the mortgage.
Furthermore, there are other factors to consider while selecting the best mortgage. Here are a few examples:
- Your lifestyle
- Type the property you wish to purchase.
- The loan amount required.
- The quantity of cash you can afford to deposit.
- Obtaining a Pre-Approval Letter
A pre-approval letter is an official document produced by the bank funding your house purchase that says that you, as a buyer, are qualified to acquire a loan to buy property in Dubai. The letter also specifies the maximum amount you are permitted to borrow.
Fulfill Paperwork For the Mortgage
The following points will clarify the essential paperwork for obtaining a mortgage in Dubai:
- A copy of your documents like your visa and passport.
- A copy of your Emirates ID.
- A pay certificate is required as proof of employment.
- Proof of residency, like a rental agreement or a DEWA bill.
- Pay stubs and bank statements over the last six months.
- The most recent credit card statements.
These papers may differ from one bank to the next. However, the ones we have mentioned are the most typically requested.
If you are a non-resident, you will just need to give the lender/bank a copy of your passport and a three-month bank account statement. However, it is worth checking whether your bank’s policy demands further documentation.
Select a Property and Initiate the Offer For Purchase
Being pre-approved for a mortgage unlocks your next step, which is to choose the house and seal the deal. As for Dubai’s profound selection of modern Apartments, villas, and townhouses, you have multiple residential accommodations to choose from.
There may be a slight chance of you being torn between more than two properties, but there’s always a way. Consider the neighborhood, size of the property, and facilities available – which will help you decide faster.
You can also partner with a qualified realtor that will not only expedite the procedure but will also help you land on the best option at justified prices. Once you find a property and the seller agrees, you must submit a reservation deposit, which is typically 10% of the purchase price. This is a retainer for keeping the property so you don’t lose it to another potential investor.
Finalize the Mortgage
When you finalize your property purchase, the bank funding your acquisition may appoint a property evaluator to help you make a reasonable bid on it.
Following the pricing agreement, you would pay a deposit and set a completion date for the purchase transaction. The bank will disburse your loan amount to the property seller on the last day of the transfer of the property.
Obtaining a mortgage in Dubai to purchase residential property is an excellent alternative for many investors. If you wish to secure a mortgage for buying a residential property in Dubai, make sure you satisfy the eligibility requirements, produce the necessary documentation, and choose the suitable bank, its mortgage options, and property for you so the process goes easily and effectively.
Also, keep in mind that acquiring a mortgage is a commitment, so think about all elements of your life and monthly budget.