If you have decided to make dubai your second home and need some money to buy a home Today we are going to share a short guide.
Home Loan Guide In Dubai.
Many banks offer home loans with their own different criteria and int rate. Generally, banks have four main criteria for home loan eligibility.
- Before applying for a home in Dubai, you have to spend a minimum of 6 months in dubai.
- Credit History – you should have a good credit history
- If you are working in dubai, you should have a minimum of six months of employment.
- If you are in business. Your business age should be 2 to 6 years.
First, you have to know how much money has to pay upfront. Second, you should know the duration of the mortgage and the rate of interest. In dubai home loan and mortgage is common.
Upfronts Payment, which expat have to pay before getting a loan.
- Expats have to make a 25% down payment
- Transfer fee 4%
- Mortgage registration fee 25%
- Valuation fees AED 2,500 to AED 3,000
- 2% real estate commission.
Pre-approval Mortgage
You should acquire a mortgage pre-approval. It gives you a clear confirmation about their budget. When you sign a sales agreement, you have to give a cheque for 10% of the purchase price. If you don’t get financial approval. You will lose the deposit money.
Valuation Clause in the Sales agreement
Bank evaluates the price of the property. If you show the overpriced property, the bank will refuse the loan.
Repayment Value
In general, a Repayment plan is based on your monthly income. If you have any other kind of loan that amount also subtracted from the calculation. Mostly, repayment value is no more than 25% of your monthly income. All banks have their own calculation method.
Mortgage Duration
25 years is the highest loan period of time in UAE. The age limit for salaried people is 65 years and for business is 70 years.
Home Loan Rates In Dubai
| FAB Mortgage Loan | 2.99% |
| RAKBANK Home in One Loan | 3.24% |
| United Arab Bank Home Finance | 3.69% |
| United Arab Bank Home Finance | 3.69% |
All banks have their own rules and regulations. Based on your income and credit history, the bank offers you different rates of interest.
If you have finally decided to get a home loan in dubai. You have to do hard work to get a loan at a low rate of interest. Being one of the foremost real estate company in Dubai, we assist our client’s to get loans easily at low interest rates.