Facilitating Dubai  home finance

Facilitating Dubai home finance

Dubai home finance is a popular search term for prospective flat and villa buyers. Another popular search term is ‘home loan for NRI in Dubai’. Dubai has a huge Indian population, thus this is expected. When expats move to Dubai, they want a house that suits their taste and budget.

Dubai expat home loans: a guide

Dubai banks offering home loans must meet specific criteria. Dubai banks usually have four house loan eligibility criteria:

  • UAE stay (6–12 months)
  • UAE employment duration (usually 6 months)
  • UAE business phase (2–3 years)
  • Credit history
  • Whether the employer is listed or non–listed will be eligible for the loan.
  • This is a Dubai property loan requirement.
  • Handshakes with model houses
  • UAE job length is a crucial determinant in loan approval.

Dubai home loans: PRE-REQUISITES

Home loans and mortgages are prevalent in Dubai, and the UAE Central Bank has clear standards. Along with the aforesaid conditions, expats in Dubai can get home loans. First, determine how much you must pay beforehand. This normally requires bank pre-approval.

Second, know the mortgage term. Compare the pros and downsides of lowering vs. fixed interest rates to make a smart choice. All of these are important for expats seeking Dubai mortgages. Expats seeking Dubai home finance should also consider other factors.

Expats must make payments for Dubai house loans. UAE Central Bank enforces these rules. You must save for:

  • 25% discount (properties under AED 5M)
  • 4% transfer fee
  • 25% mortgage registration fee
  • Fee for valuation
  • 2% (variable) real estate commission
  • UAE Central Bank enforces Dubai home finance legislation.
  • Mortgage pre-approval

Mortgage pre-approval is necessary before house hunting. It clarifies their budget. This is important since you may search within your budget. Additionally, you must pay 10% of the purchase amount when signing a sales agreement. Not having financial approval and being denied bank financing will cost you your deposit.

Sales agreement valuation clause

Make sure your contract includes property valuation. The bank will evaluate the property before lending. If the property is overvalued, the bank won't lend. The valuation clause safeguards the buyer's deposit. Alternatively, the valuation could be done before the sale agreement.

Duration of mortgage

UAE loans can last 25 years, with a 65-year age limit for salaried workers and 70 for self-employed. Naturally, a longer-term loan lowers monthly payments but raises interest. Longer-term Dubai mortgages increase borrowing capability.

Choose a longer-term Dubai home finance and pay extra each year to shorten the duration. An extra 10% of the principal can be repaid annually without penalty. Consult a professional before making a Dubai home finance decision.

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