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May 2nd 2019Mortgage, Mortgage Loans, real estate market in Dubai

Mortgage tips for first time homebuyers

So you’ve decided to buy a property in Dubai . But what about the finances?  Buying a property in Dubai can be a pressure on your financial state. But don’t worry! There are ways you can address your financial worries. You can get a mortgage to be able to afford your dream home.

And  applying for a mortgage is easier than you think.

What is a Mortgage?

 A  mortgage is a type of loan that you obtain to pay the value of a property. A mortgage for residential property is generally called a home loan.  These are the few things you should consider before taking the mortgage.

How much to take?

This is a very crucial decision. Before finalizing the amount you should calculate what are you monthly expenses. For example, how much are you spending in food, utilities etc monthly out of your paycheck. This would give you a good idea on the size of property you can afford and the down payment that comes with it. And make sure you don’t only look at just the monthly payment but at the total property cost including moving, relocation, insurance, maintenance etc.

Don’t flow with the emotions

So you think since you’re getting a home on loan you should add all the extras like a swimming pool or maybe a fancy deck. This is a mistake that people often make which inflates their monthly payment. Invest in a home that is suitable for your family and is located in a good neighbourhood. Check properties in your pre set price range to avoid falling in the over spending trap.

Check how much you can borrow

The loan amount depends on several factors such as credit history, monthly income, other debts which you may have and some other factors for some institutions. So before starting the buying process, consult with a mortgage consultant about the type of loan you’re eligible for. Ensure you don’t get a black mark on your credit file to have a pleasant mortgage application process.

Where to get the mortgage from ?

These are the best rates you will get for a specific amount.

Bank Rate
of
interest
Minimum
salary
Loan
amount
Standard Chartered Mortgage One 3.49% (reducing) 10000 AED 18 Milion AED
RAKBANK Home inOne 3.24% (reducing) 15000 AED No Limit
Emirates Islamic
Manzili Home
Finance
3.19% (reducing) 15000 AED 20
Million AED
CBD Mortgage
Loan for Expats
3.64% (reducing) 12000 AED(Salaried
people)

20000 AED(Self-
employed)  
10
Milli
on AED
United Arab Bank Home Finance for UAE National 3.69% (reducing) 15000 AED (Salaried
people);

50000 AED (Self-employed)  
10
Million AED

Source: Best mortgage rates in Dubai

Make sure to investigate all your options. There are a lot of banks and mortgage lenders. Use a mortgage calculator  to plan your loan and compare the banks accordingly. You can also take broker services where do the work for you and find the best mortgage plan for you.

Written and published by Propertyeportal Media Team.