FREQUENTLY ASKED QUESTIONS ABOUT MORTGAGE

Normally, a home pre-approval letter from a bank takes 3-5 working days

In case of an UAE national you will get 80% of the total amount financed by the bank. In case of an Expat you will get 75% of the purchase amount financed.

Due to coronavirus pandemic the banks have increased the percentage of mortgage amount. Currently, in case of UAE national you will get 85% of the total amount financed. In case of Expat you will get 80% of the total amount financed.

UAE Nationals – 15%
Expat residents – 20%

All property whether offshore or onshore, free hold ownership or leasehold up to 99 years, gifted property the buyer will get mortgage.

There are two type of mortgage available in UAE.

Fixed rate mortgage
A fixed rate mortgage is where the rate of interest is fixed for a certain period of time. In this case the amount and the time both are pre decided.
Variable rate mortgage
A variable rate mortgage is where the rate of interest payable is linked to 1, 3 and 6 month EIBOR (Emirates Interbank offered rates). That means the rate you are paying can go up and down depending on the EIBOR.

A mortgage is not valid unless it is registered with the Department i.e. RERA. The owner of the property has to bear the cost of registration. Generally the registration amount is 0.25% of the mortgage amount plus AED 4100.

The bank and financial institutions are the lenders to the buyers they provide the money to purchase the property. The whole mortgage depends on the bank. They decide upon the rate of interest. The term of loan and the repayment schedule. As the rate of interest and the terms of loan varies from bank to bank it is advisable to the buyers to consult their property advisor before deciding on the bank.

After deciding on the property we have to look for the appropriate bank that can finance the purchase. The buyer must check the rate of interest offered by the bank. The rebates offered by the bank. They should also check the banks reputation with its client whether the bank is buyers friendly or not.

Mortgage broker is your adviser who can understand your profile, profession, requirements, budget etc and takes care of your end to end home buying journey. They help the buyer in finding the right financing arrangement as per the budget and also help you in deciding the right bank and type of mortgage for them. They will represent you in bank through out your mortgage process.

Money Maestro is one of the best mortgage broker in Dubai with more than 18 years of experience in home mortgage and property loans. Our one stop services are as follows-
a) Business Finance and trade & working capital solution
b) Instant approval in principle
c) Mortgage for Non UAE residents
d) Loan buy out
e) Refinance/Equity Release
f) Mortgage pre approval
g) Sharia compliant home financing solution