Mortgage Loans are a boon for those who are looking to invest in property in Dubai. A secured loan helps you buy a property by providing you with the required finances. Mortgage loans are a good way to get affordable financing for your property purchase.
It’s best to look for one-stop shops for getting a mortgage. Emortgage is a leading company providing mortgage loans in Dubai and across the UAE.
We offer a wide range of mortgage loan products that are designed to suit your individual needs and budget. Bound directly with banks and financial institutions, Emortgage offers pivotal financial help.
What is a Mortgage Loan?
A mortgage loan is used to finance the purchase of a property. It is generally used when buying a home or other commercial property. The borrower makes monthly payments to the lender for a set period, typically between 10 to 25 years.
The interest rate on a mortgage loan is usually lower than the other types of loans. This is because the lender’s risk is mitigated by the collateral.
If the borrower defaults on the loan, the lender can foreclose on the property and recoup their losses. Mortgage loans are one of the most common types of loans used by consumers, and they can be obtained from banks, credit unions, and other financial institutions.
Features of a Mortgage Loan in Dubai
- Low interest rates: Mortgage rates in Dubai are generally lower than other types of loans because the property is used as collateral.
- Long repayment periods: Mortgage loans typically have longer payback periods than other loans, making them more affordable.
- Tax benefits: In some cases, the interest paid on a mortgage loan may be tax-deductible.
- Flexible repayment options: Mortgage loans often offer the ability to make bi-weekly or lump-sum payments for flexibility.
- Prepayment penalties: Some mortgage loans may have prepayment penalties, meaning the borrower will be charged a fee if they pay off the loan early.
- Easy to obtain: Mortgage loans are relatively easy to obtain from banks, credit unions, and other financial institutions, especially if the borrower has good credit.
Who is qualified for a Mortgage Loan in the UAE?
Residents of the United Arab Emirates can obtain a mortgage, but they must fulfill certain criteria
- You must be a UAE-citizen or resident.
- You must have a good credit history
- You must have a down payment of at least 20% on the purchase price
- Employed for at least six months or a year.
- You must have a minimum salary of AED 4,000 or AED 5,000. You must be between 21 and 65 years old.
Step-by-Step Guide to Getting a Mortgage in Dubai
Find a Lender
The first step to getting a mortgage is finding a lender. There are many different types of lenders – including banks, credit unions, and online lenders. It is important to shop around and compare rates before choosing a lender.
Once you have chosen a lender, you will need to submit information about your financial situation, such as your income, debts, and assets. The lender will then review your information and come to a decision.
Find a Property:
Once you have been pre-approved for a loan, you can start property hunting. It is important to remember that the amount you are approved for may not be the same as the amount you are willing to spend.
Get a Loan Estimate:
Once you have found a property, you will need to get a loan estimate from the lender. This document will give you an idea of how much the loan will cost, including the interest rate, monthly payments, and other fees.
Submit an Application:
Once you have a loan estimate, you can submit an application to the lender. This process involves providing additional information about your financial situation and the property you are interested in.
Documents Required to get a Mortgage in Dubai
The following documents are typically required when applying for a mortgage loan in Dubai:
- Passport and visa to prove your identity and residency status.
- Employment letter from your employer to prove your income.
- Salary certificates to showcase regular inflow of cash through payslips.
- Bank statements from the past three months to prove your financial stability.
- Property documents such as the title deed and purchase agreement to prove that you own the property.
- Mortgage loan agreement after you have been approved for a loan. You will need to sign a mortgage loan agreement outlining the terms and conditions of the loan.
Mortgage loans are a fantastic financing option when buying property. With Emortgage, you can easily apply for a mortgage loan in Dubai and get the best possible options. We offer a wide range of mortgage products and services to suit your needs. We also provide consultation to help you choose the best loan for your situation. Contact us today to learn more!
Yes, you will need to make a down payment of at least 20% of the purchase price to be eligible for a mortgage loan.
The minimum salary for a mortgage loan in Dubai is AED 4,000 or AED 5,000.
Yes, expats can apply for mortgage loans in Dubai.
The maximum age for a mortgage loan in Dubai is 65 years.