How to get a mortgage in UAE

Purchasing a home and obtaining a mortgage can be a time-consuming and stressful process for first-time buyers. Even though many buyers prefer to pay in cash to avoid paying interest, mortgages in the UAE provide the buyer with a great deal of flexibility when it comes to managing money, budgeting payments, and selecting the ideal property.

 

We compiled the best tips to help you stay ahead of the competition. Here are five pointers to help you acquire the mortgage you desire.

 

Get your documents ready

Obtaining a mortgage requires a lot of paperwork. So stay organized and make sure you have got them all ready. It includes:

 

• An application for a mortgage

• A copy of your passport

• Visa

• Emirates ID 

• Salary certificate 

• A copy of the residence permit 

• Bank statement copies for the previous 6 months

 

Other supporting documents are required to verify employment, income sources, and liabilities. If you're a non-resident of the UAE looking for a property loan, you'll just need a certified copy of your passport and your bank statements copy for the last 3 months.

 

Secure your down payment

Obtaining a mortgage in the UAE normally requires a 20% down payment. Before you start looking for houses, make a plan on how you will finance the 20% down payment.

 

Get a copy of your credit report 

Because credit history records are not transferable between nations, it is critical to maintain a strong credit history in the UAE to demonstrate your credit repayment dependability. Therefore, it is helpful to know your credit score ahead of time so that there are no unpleasant surprises afterwards. Also, you may order this report online, which will allow you to fix or enhance your score before submitting your mortgage application.

 

Contact a mortgage broker

Home mortgages in Dubai must be registered with the Dubai Land Department (DLD). It is ideal to contact a professional mortgage broker early in the process, especially if you are an expat who's new to the purchasing process. You may inquire directly with your bank about possible mortgage options. You may also engage a mortgage broker to help you find a mortgage loan.

 

Obtain a pre-approval

Getting a pre-approval is possibly the most significant stage in the process of applying for a mortgage in the UAE. A pre-approval letter for a home loan is an official document provided by a bank as proof of your ability to get housing financing, which specifies your maximum borrowing limit, and it also increases your chances of securing a house loan. 

 

Select the best mortgage for you 

In Dubai, mortgages are classified as fixed-rate and variable-rate mortgages. There are various factors to be kept in mind while choosing the right mortgage and they include your lifestyle, the sort of property you'd want to purchase, the amount of money that you need as a loan and the amount that you can afford to put down as a deposit. 

 

Obtaining a mortgage in the UAE to purchase a residential home is an excellent alternative for many people. If you want to secure a loan to buy a home in Dubai, make sure you fulfil the eligibility requirements, produce the necessary documentation, and choose the most suitable bank, mortgage, and property for you so the process goes easily and effectively. At BanqMart, you can get control of your finances with competitive loans and receive financial insights as well.