Mortgage Finance

Mortgage is a loan availed from a financial institution, that is generally a bank, with minimal interest rates in a short time period. It enables you to purchase or construct a new home or even renovate the current house or building that you have. By availing mortgage loan in Dubai, you are stepping to acquire your own asset that undoubtedly fetches many times its present value later on in future.

New Mortgage Rules in Dubai

According to the new rules of governing mortgage loans that has been issued by the Central Bank of UAE:

  • Expatriates can borrow up to 75% of the total property value for initial investment less than 5 million AED while UAE nationals are permitted to borrow up to 80% of the total property value.
  • Expatriates and UAE nationals are permitted to borrow up to 65% and 70% of the total property value respectively for the properties that are worth more than AED 5 million.
  • Every mortgage will be limited to 50% for off-plan properties despite the value, nationality, or the purpose.
  • The repayment of the loan will be expanded across a term of 25 years. The Maximum age for repayment of the last instalment for the expatriates will be 65, and the UAE nationals will be 70 years.
  • EMI cannot be more than 50% the monthly income of the borrower, and total repayments for the expatriates and UAE nationals cannot be more than the annual income earned in 7 years and 8 years respectively.
  • The above-mentioned rules came is effective from the month of November 2013.

Eligibility Criteria for a mortgage loan in Dubai

  • Minimum age to buy a property is 21 years.
  • Individuals can avail a home loan is up to a maximum of 58 years age if salaried, and up to 60 years if self-employed. However, this can vary according to the lender.
  • You must have a constant income to avail mortgage loan as your monthly income aid to decide the loan amount.
  • Clear credit record

Documents required:

For Individuals

  • Identity proof documents, passport, Emirates ID
  • Utility bill as proof of residence
  • Bank account Statement
  • Salary certificate and Salary Slips

For Self-employed

  • Identity proof documents, passport, Emirates ID
  • Utility bill as proof of residence
  • Bank account Statement
  • Memorandum of Association
  • Trade license Copy
  • Employee list
  • Company profile / Web address

WHAT YOU SHOULD KNOW BEFORE TAKING A

BANK / FINANCE PRODUCT

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