For an expat it is best to take the services of home loan in UAE
Dubai was considered as the most deserted place and useless region for every type of profession but no one had ever thought to current days that are making Dubai’s property sector among the most volatile globally. Now a days the is a best service and need of the day that is beautifully cater by the top financial institutions of Dubai including top banks of Dubai. Today, end-users dominate the market and are relying on home loan in UAE to help fund their purchase. When an institution provide home loan in UAE, for this there are many factors that are being considered for borrowers such as from the upfront costs to deciding on the mortgage duration. The one of the most important point is whether to opt for a variable or fixed interest rate. This is a long debate that which method is most appropriate for taking home loan in UAE. Well we will discuss the both in next article in detail. Now here only we will cater the costs and installment methods. First, let’s consider the initial costs. According to the UAE Central Bank rules, expats or locals must pay a minimum deposit of 25 per cent of the purchase price for properties to take the home loan in UAE services. So in Dubai, in addition to this down payment, you’ll need an additional four per cent transfer fee. In most of the other states of emirates this fee is much less than Dubai but as packages offered in Dubai are cheapest so it does not matter and we can neglect this fee. Beside these charges the borrower has to pay a 0.25 percent mortgage registration fee calculated on the loan amount. If we add all these charged together, these add about five to seven per cent to a property’s cost. So before going to take the home loan in UAE consider these all charges and fee. If you want to buy a home for Dh2 million in Dubai it would make you to extra fees of over Dh100, 000, according to the mortgage calculator on property provided on the official website of the top banks of Dubai.
Now the major thing and task has come to understand that is how one can get pre-approval for a home loan in UAE? The top and sensible buyers should first obtain mortgage for a home loan in UAE in the form of a pre-approval to confirm their budget before doing any serious property hunting. This is the most important point and this strategy make things easy for you in future if you are thinking about home loan in UAE. Before going to sign a sales agreement it requires the buyer to give a cheque for 10 per cent of the purchase price. Now the question is should you commit before securing financial approval? If you do so you are subsequently refused bank finance and eventually you will lost your deposit. Top bank of Dubai typically limit mortgage loan so that repayments are no more than 25 per cent of a borrower’s monthly income. The banks of dubai will also take into account existing debts such as car loans or credit card debt when calculating how much to lend. So before going to take a home loan in UAE first one should manage his/her all debts. Now I think the most appropriate bank for this purpose is Mashreq Bank of Dubai. It is one of the oldest and most reliable bank in Dubai due its credibility in the market of Dubai. For someone earning Dh25, 000 per month, the different lending policies of Mashreq bank can mean a difference of Dh300, 000 in your Home loan in UAE. For further details one can get all information from the official website of the bank along with all other services such as life insurance policies, wealth management services and financial solution for big or small investors. In terms of mortgage duration, the maximum loan allowed in the UAE is 25 years for all people.