The UAE has become a growing famous spot for expatriates, particularly in business-friendly places like Dubai. In recognition of these trends, the mortgage market is now well-setup, with local and international lenders giving mortgage loan in Dubai for expatriates. Both domestic and get to let mortgages are available to overseas residents staying in Dubai, however, their criteria differ. If you are also wanting to get a mortgage loan then get in touch with the Taskmaster professionals who will completely guide you during the process and also assist you in getting a mortgage on your behalf in a short possible time.
This goes without stating that property is costly in Dubai. Even if you are searching for a home entity in affordable places, be ready to spend a fortune to get one. Since not several have much cash available at their disposal to pay such a large amount, most people trust obtaining a mortgage loan in Dubai to transform their dream of buying a house into a reality. Of course, this has a downside that you would need to make payments of interest rates, but there are several advantages related also. The most suitable of them is that you would be able to get a property, which, otherwise, can be daunting, taking into account the increasing amounts of properties in Dubai.
Keeping the mortgage vs cash debate side, make your decision to take the benefits of own a property in Dubai deserves a pat on your back. Having stated that, if you are choosing the mortgage choice, keep in mind that the procedure to get it sanctioned entails numerous phases. Moreover, you have to complete the eligibility criteria hence their application can move forward.
Steps to Buying a Property with Mortgage Loan in Dubai
The steps you will have to follow for getting a property mortgage in Dubai are mentioned below –
- Finalize a Lender
To start with, you have to finalize the lender. This can be a bank or a private lending firm. For this, you can make a list of the most suitable banks or lenders for mortgages, depending on the recommendations or research you have gotten from your peers or friends. Then, compare their rates of mortgage and the need to make an informed decision.
- Choose the Type of Mortgage
As mentioned above, there are various kinds of mortgage loans in Dubai. They vary in terms of rates of interest, payments terms, and more. Do a little research on your end and then make a decision accordingly. Take many factors into consideration when deciding. These comprise the loan amount, loan tenure, monthly income, and more. You can also take the assistance of online mortgage calculators available on the sites of several banks. This facility can assist you to get an evaluation about the monthly EMI you would need to make for paying off the loan.
- Obtain a Pre-approval Letter
One of the very crucial stages to get a home loan in Dubai is obtaining the pre-approval letter. After getting this letter, the applicant can begin searching for convenient home choices that suit your needs. This is usually an official document that is issued by the bank or lender. This document can also work as evidence of the eligibility of the borrower. The maximum borrowing limit is also specified in the letter of pre-approval. The time it takes to obtain an approval letter is based on the lending firm and bank you have chosen. Typically, this is available in three to five working days. Although, certain companies also provide facilities for fast approval for the mortgage.
- Finalize the Property
Now that you get the pre-approval letter and maximum budget limit, you can begin your hunt for the appropriate property. Decide the spot and kind of property and then base your search on these aspects. Remember that the letter of pre-approval is valid for 60 to 90 days. This tenure is based on the lender you have chosen. Hence, you would have to figure property in this duration only.
Certain people choose a property prior to the approval of a mortgage. It is not exactly the wrong way but can pose complications if the chosen property does not come under the budget for the loan is sanctioned. In such a situation, you would need to redo the whole property hunt procedure again, which can consume so much time. Hence, the best way is to locate a property after getting the official approvals.
- Seal the Deal
This is the last stage of getting a loan and receiving ownership of your chosen house. Once you have located the property, contact the bank or lender for the purpose of finalizing the loan contract. They can be appointing a property evaluator who would be responsible to know the price of the property you have chosen. If everything goes in a good manner, then the lending firm would release the loan amount, and you would own property as this would be transferred to your name.
Eligibility Criteria for Getting a Mortgage Loan in Dubai
Prior to applying for a mortgage loan, ensure that you are eligible for taking such a loan. This phase is essential whether you wish to purchase a commercial or residential property in Dubai. Typically, the eligibility criteria differ from bank to bank, based on their policies. Other lending firms also have their set of terms that the applicant should complete getting their application sanctioned for a home loan in Dubai. Although, the usual terms are –
- The application should be a UAE resident or citizen
- Their age must be between 25 to 65.
- They should have a monthly income of about AED 15000. It must be AED 25,000 minimum if the applicant is self-employed.
Documents Required for Getting a Mortgage Loan in Dubai
The vital point for getting a home mortgage loan in Dubai is presenting the necessary documents. The loan brokers in Dubai can also help you in preparing and submitting essential documents. However, the documents are –
- Copy of the passport
- Copy of visa
- Emirates ID
- Salary certificate
- Bank statement of last six months
- Tenancy agreement
- Latest credit card statements