Welcome to the UAE, the land of sun, sand, and the promise of a better life. But to build a future here you first need a place to stay. Thanks to the flexible and affordable home loans that the UAE has to offer, it has never been so easy for an outsider to buy your own house. Here’s a step-by-step guide to help you apply for and get a home loan or mortgage to turn your dreams into reality.
A financial instrument through which you can borrow money from the bank to buy a property. In the UAE, a home loan or mortgage is also called home finance. The money you get from the bank has to be returned by way of equated monthly installments (EMI)s over a period of time along with the interest charged by the bank.
For that, you should first start by calculating your earnings and the amount you can repay as EMIs. You can do that by simply using the home loan calculator. It will give you a basic idea. For further details, the banks are always there to help.
One of the most important factors on which the loan amount will depend is your salary, or if you are a business person, then your annual turnover. Banks will check your viability to repay and will fix the loan amount, the rate of interest, and the duration of the loan. Go for the bank which has the lowest home loan rate and one that suits your budget.
While the minimum down payment varies as per the property price, banks usually give 75% of the total unit cost. The rest of the down payment must be borne by you.
Banks provide different types of home loans, each with its own rate of interest. Here’s a lowdown on the different home loan rates you can avail:
There are certain conditions that an outsider has to meet to be eligible for a home loan in the UAE:
Following is a list of documents needed by an expat to apply for a home loan in the UAE:
It is a pre-approval on your loan given by the bank based on your financial status. It will help you narrow down on a property that fits the budget. The loan will be provided once the bank verifies all the documents.
In the UAE, it is mandatory to have property insurance while taking a home loan. It gives you a safety net in case of future loss. One can buy the insurance together with the home loan or separately.
Absolutely. Every day banks are coming up with competitive home loan rates to attract customers. In case you find a better deal than the existing home loan, you can go for it. All you need to do is speak to the bank and the person there will guide you on the rest of the modalities.
Here are some of the banks offering the best home loan rates:
Finally, let us take a look at some of the major things you, as an expat, will need to keep in mind while applying for a home loan in the UAE:
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