We can help with all your home loan and commercial finance needs
Buying, or refinancing, in Dubai and the UAE can be frustrating and complicated. MJB is dedicated to ensuring you get the best mortgage advice and that your interests are always protected.
A mortgage is a type of loan you obtain to pay the value of a property.
Generally, a mortgage for your residential property is called a home loan.
Commercial properties can include warehouses, office spaces and other properties used for commercial purposes.
When it comes to mortgage in Dubai, most procedures are like conventional banking; however, a few key factors do change.
So, you need to understand each aspect of finding and getting a mortgage for your property in Dubai.
If you decide to purchase a property in the UAE, the best-suggested destinations are Dubai and Abu Dhabi.
Between the two, Dubai is most popular for the availability of top-notch residential and commercial spaces.
The cost of these properties can seem a pressure on your current financial state. But don’t worry! You can get a mortgage to purchase your very new office or a new place to live in.
To successfully complete the process of getting a mortgage, you should understand all about the eligibility criteria, according to the guidelines of the UAE Central Bank.
UAE Nationals and Expats have to complete different eligibility criteria provided by the UAE Central Bank. In our previous blog, we covered about expat’s guide to buying a property in UAE.
An LTV value, which is also known as Loan to Value, is an overall loan value you get with respect to the property price.
Down payment for a mortgage in Dubai
There are no exceptions when it comes to current down payment guidelines provided by the Central Bank in UAE.
All applicants have to contribute a payment portion.
Maximum LTV or Loan to Value to purchase a ready property:
In case of first property buying through Mortgage, the LTV stands 80% (Only a
few banks are following it)
For expatriates who want to purchase ready properties-
- If the property value is 5 million in AED or below, the LTV stands 75%.
- If the property value is more than 5 million in AED, the LTV stands 65%.
- If you are buying a second investment property or a home, the LTV stands about 60%.
For example, a bank can offer about AED 750,000 for a property with 1 million value in AED, depending on eligibility.
Similarly, a bank can offer about 3.25 million in AED for a property with 5 million price value in AED, depending on the eligibility.
For UAE nationals who want to purchase ready properties-
- If the property value is 5 million in AED or below, the LTV stands 80%.
- If the property value is more than 5 million in AED, the LTV stands 70%.
- If you are buying a second investment property or a home, the LTV stands about 65%.
- These LTV values are applicable to freehold as well as leasehold ready properties.
Maximum LTV or Loan to Value to purchase an off-plan property:
The off-plan properties have the same 50% of maximum LTV for both UAE nationals as well as expats.
A step-by-step approach to applying and attaining a mortgage in Dubai
Choose your property
Get an agreement from the property seller
Calculate mortgage using Mortgage Calculator and find a list of best-suited mortgage options
Collect and review all the required documents
Get the pre-approval issued from your mortgage providers
Ensure property identification
Wait for Property Evaluation
Obtain an Offer Letter
Go through a medical check-up
Fulfill the request for a certificate of no objection
Complete the property transfer
Receive documents and the key