Dubai Mortgages And Home Loans: A Foreigner's Guide

You can buy a home in Dubai if you are planning to stay in Dubai for a longer time. You can buy property in Dubai in two ways- with cash or mortgage. The cash investment is cost-effective, but a mortgage permits you flexibility in managing your finances. If you want to buy a property on mortgage in Dubai, you need to know the working of home loans and the steps to get a home loan.

This article covers the documents required for getting home loans, the legal ins and outs, and many more. You can seek the help of mortgage loan consultants in Dubai to facilitate your work easily.

Who Can Get Mortgage In Dubai?

A UAE national aged between 21 and 65 and having a monthly income of at least AED 8k can get a mortgage in Dubai. In the case of a foreigner, very few banks provide them with home loans.

The age criterion, for acquiring mortgage in Dubai, has been defined on different profiles. The self-employed individuals up to 70 years and 65 years for salaried professionals. Furthermore, the income variation is set at 10,000 for salaried professionals and 25,000 for self-employed.

What Are The Types Of Mortgages?

There are several mortgage providers, from reputed brands to local institutions. Therefore, you need to do a little research before buying property on the mortgage. The amount of deposit you are asked to pay will depend on the type of property you want to buy. As a foreigner, if you are looking for an investment property, you need to submit a higher initial deposit. Buying investment property needs 40% of the price upfront as a deposit. If an expat wants to buy a home to live in, he needs to submit 25% of the price as a deposit.

There are two types of mortgages- fixed-rate mortgages and variable rate mortgages. Fixed-rate mortgages mean you have to pay the same interest rate throughout the agreement period. Variable-rate mortgage can cost more or less depending on the change in interest rates. A variable rate mortgage is better if you think that the interest rates are going to fall within this period.

Should A Foreigner Go To A Bank Or A Broker?

You can arrange your loan directly with a bank. You can also seek the help of property mortgage brokers in Dubai. If you don't know your eligibility for a mortgage, then take an expert advice from a qualified mortgage broker. Advice from a broker will allow you to know all the options and regulations of the Dubai mortgage market.

What Legal Requirements Are Needed To Obtain A Mortgage In

Dubai As A Foreigner?

Since 2002, foreigners can legally buy a home in Dubai and apply for a mortgage. When it comes to foreign buyers, individual banks will make their own rules and regulations because an expat means an increased risk for the bank. The banks, which provide foreign buyers with home loans, demand significant down payments from the expats before the purchase of the property.

What Documents Are Needed To Get A Home Loan In Dubai?

To apply for a mortgage in Dubai by a foreigner, the documents needed are- a copy of your visa and passport, Emirates ID, proof of residence, a salary certificate, pay slips, bank statements for the past three months, and the latest statements of your credit cards.

How Does A Foreigner Get A Mortgage In Dubai?

Step #1. Go To Either Bank Or Mortgage Brokers

Approach either directly to the bank or to the mortgage brokers to get a mortgage in Dubai. Qualified mortgage brokers will help you to find the right home instead of getting lost in the entire mortgage process.

Step #2. Select The Right Mortgage For You

While deciding the types of home loan, the factors you need to consider include-

The type of property you wish to buy, your lifestyle, the loan amount and the cash deposit you may pay.

Step #3. Getting A Pre-Approval

The bank issues a pre-approval letter as evidence for your eligibility for a mortgage refinance loan in Dubai. This step is quite important.

Step #4. Finalise Your Property Purchase

After finding your dream home, you have to finalise the agreement with the bank. After paying the initial deposit, when the property will be transferred, the bank will give your loan and you will then be the owner of the property.

Conclusion

A foreigner, who is eligible to buy a property in Dubai, must follow these guidelines to get a mortgage in Dubai.

To know more visit: https://www.gdsmortgage.com/mortgage-refinance-loan-consultant