MORTGAGE DEALS UAE

How to Get The Best Mortgage Deals in the UAE

Tips From The Experts

When it comes to buying property in the UAE, the viewing and choosing is the fun part but don’t let that override the importance of securing the best mortgage deal for you, because with over 30 providers today and that number continually on the rise, it really does pay to shop around. These are our top tips for finding a mortgage in Dubai:

1. Get Approval First

It is better to get your mortgage in place before you select the property you wish to buy. Once you have your approval in principle, you know exactly how much you can borrow which will help narrow down your viewings and once your property has been chosen, the process to close the deal with be quicker and easier. Not having an approval in principle could mean that you lose out on a property as you’re not in a position to bid or that you lose the 10% deposit required to secure a property, if subsequently, your mortgage application is turned down.

2. Act With Caution

Be wary when researching mortgage providers, that there is sometimes a discrepancy between how much they will allow you to borrow and how much of your income you really want to go towards your monthly mortgage installments. Use our mortgage calculator to work out what your repayments will be and don’t borrow more than what you are comfortable paying back, even if a bank may offer you more. According to the Central Bank, your monthly mortgage installments and other debt repayments, should not consume more than 50% of your income. Use our income to debt ratio calculator to see if you’re under the 50% threshold.

3. Know The Maximum

There are maximum loan limits in place – expats can borrow up to 75% of a property’s value, and locals 80% for first time purchases – and for further purchases this drops to 65% and 70% respectively.

4. Compare The Market

Don’t just opt for a loan from your existing bank. This may be the easiest way but with so many options on the market, mortgage products are competitive with varying rates, features and benefits, so it really does pay to do your research. Use yallacompare.com to compare all the leading products on the market

5. Get Help

Alternatively, work with an Independent Mortgage Advisor who can take the hard work out of your hands for a minimal fee. Mortgage Advisors often have access to better deals as well and can help you with your application, insurance, salary transfers and collating the paperwork required.

6. Use Your Bargaining Skills

Don’t be afraid to haggle. If you don’t ask, you don’t get! If you find a great deal from one lender, ask another if they will match it. Lenders won’t normally cut their headline rates but they may offer a lower fee. Bear in mind that your personal situation will affect the type of loan you can get. If for example, you have a long-term stable job and a family, you might be seen as a less risky applicant over a single individual who hasn’t been long in the UAE.

7. Property Type

Also banks tend to prefer lending for the purchase of villas over apartments, simply because there is a greater supply of apartments which potentially makes for more volatile prices. When calculating out how much you can afford, don’t forget to include the cost of all fees involved as well as the fee of a mortgage advisor if applicable as well as your valuation, life and household insurance.

If you remember one thing when it comes to choosing a mortgage:

Shop around and compare, compare, compare!