Buying a home in the United Arab Emirates (UAE) is an exciting prospect and and undoubtedly the most important financial decision you will ever make.It is no big surprise that property in the UAE is very expensive. That said, a mortgage can help you purchase your dream home in the UAE much sooner than if you were to save up enough money to buy it outright.
But how can you qualify for a mortgage in the UAE? What are the criteria? This article will explore these questions and discuss the different types of mortgages available in the UAE.
How can you qualify for a mortgage in the UAE?
In order to qualify for a mortgage in the UAE, you must meet certain criteria These include:
Having a steady job:
Without the assurance that you will repay their loan, no one will lend you a penny That is why it is important for you to have a steady job and income before applying for a mortgage in the UAE. Even though lenders prefer applicants with at least two years’ experience at their current employer, you may still qualify even if you are relatively new in your position.
Good credit score:
Your credit score is a reflection of your financial stability and it plays an important role in determining whether you will be approved for a mortgage or not. Generally, lenders prefer applicants with a good credit score (above 700). You must try to improve your credit score before applying for a mortgage in the UAE if it is below 720.
Having sufficient income:
In addition to having a steady job, you must also have sufficient income to qualify for a mortgage in the UAE. Lenders will typically look at your monthly salary, plus any other sources of income you may have, such as rental income or dividends from investments. The amount of money you are able to borrow also depends on your debt-to-income ratio and your credit score.
Having the right documents:
Lenders will also require you to provide certain documents in order to qualify for a mortgage in the UAE. These include proof of identity, such as your passport or Emirates ID card; proof of address, such as a recent utility bill; and financial statements, such as your bank statement or tax return.
You may even be asked to provide additional documents, such as proof of income. Make sure to have all of these documents in hand before applying for a mortgage in the UAE.
Consider all of these criteria when applying for a mortgage in the UAE. If you meet all of these criteria, then you should have no problem qualifying for a mortgage.
Apart from your financial stability and income, other factors lenders consider before approving a mortgage in the UAE include:
- The value of the property you are trying to purchase
- The location of the property
- The age of the property
- Your ability to repay the loan in full within an agreed period.
It is important to note that not all lenders may have the same criteria for approving mortgages in the UAE, so it is always best to shop around and compare different lenders before committing to a particular one.
Now that you know the basics of how to qualify for a mortgage in the UAE, let’s take a look at the different types of mortgages available.
The Different Types of Mortgages Available in the UAE
Several types of mortgages are available in the UAE, each with its own criteria and conditions. The most common types are:
Fixed Rate Mortgages:
This type of mortgage offers a fixed interest rate for the entire duration of the loan, making it easier to plan your budget and finances in advance. You must make sure to carefully read and understand the terms of this loan before signing any agreement. If you plan to stay in the UAE for a long period of time, this could be the best option.
Variable Rate Mortgages:
Unlike fixed-rate mortgages, variable-rate mortgages come with an adjustable interest rate which may go up or down depending on market conditions. This type of mortgage can be beneficial if you are expecting your income to increase over time, but it can also be risky if market conditions become unfavourable.
How Can Emortgage Help You
We have been helping expats and residents of the UAE with their mortgage applications for more than years. Our team of experts can guide you through the entire process, from finding the best lender to filling out the paperwork. We will also help you compare different mortgage products so that you can find one that meets your needs and budget.
Our dedicated team is available to answer any questions you may have about applying for a mortgage in the UAE. With our help, you can rest assured that your application will go smoothly and quickly and that you will find the best deal available.
For more information on how eMortgage can help with your mortgage applications in the UAE, please feel free to contact us today. We look forward to hearing from you!