Home financing is available on all Nakheel real estate projects from Nakheel's home finance subsidiary, Tamweel, and on Emaar projects from Emaar's home finance subsidiary, Amlak. Mashreq Bank also offers mortgages. RAKBank offers mortgages only once the project is completed. A range of other banks and finance institutions are starting to offer mortgages as well. Lending criteria varies at each institution. As of yet, no financing institution is offering mortgages on freehold developments of any private developers.
Each financial institution has a checklist of loan criteria. The property purchaser will have to fulfill the financial institution's loan criteria and provide the necessary documentation which includes but is not limited to: Copy of passport(s) for property purchaser(s), Bank Statement(s) of property purchaser(s) for 1 year, Credit History - Credit Bureau report (EQUIFAX, D&B etc.), bankers reference, credit card report.
In most cases, interest is accrued during the construction period and the property purchaser will have to pay/clear this amount on handover of the unit. Then the property purchaser will have to repay principal and interest installments for the tenure of the loan.
The APR or interest rate depends on the bank, between 5.5% to 6.5% p.a. payable on a declining principal balance. It may be monthly or quarterly.
Mortgage tenures are between 5 to 15 years depending on the financial institution.
Banks or financial institutions send statements monthly or quarterly, to overseas addresses.
Payments should be made out to the name of the property seller for down-payment amounts or to the financial institution for loan repayments.
When the property purchaser’s financing becomes a realty mortgage, it will be registered on each property at the Govt. of Dubai Lands Dept. Mortgage Section.
Getting a mortgage in Dubai can be a complex process, but with the right help, the process can be made more straight-forward.
Some factors that may affect your ability to get a mortgage in Dubai include:
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Income: You will need to demonstrate that you have a stable and sufficient income to cover the mortgage payments. Lenders will usually require proof of income, such as payslips or bank statements.
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Employment status: Lenders prefer borrowers who have a stable job and have been employed for a certain period of time. If you are self-employed or have a short job history, it may be more difficult to get a mortgage.
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Credit history: Your credit history plays a significant role in your ability to get a mortgage. Lenders will look at your credit score and credit history to determine if you are a high-risk borrower.
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Property type: Some lenders may be more cautious about financing certain types of properties, such as those that are under construction or those that are located in areas with high levels of supply.
Contact fäm Properties today to get started with your mortgage journey, and let us help you every step of the way.
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