The loan amount is determined on the basis of your affordability, which is determined by evaluating your income & other credit liabilities.
For property purchases, if the property value is below AED 5 million, the maximum loan-to-value (LTV) for an Expat is 80% and for a UAE national is 85%. This value drops to 70% for Expats and to 75% for UAE nationals, if the property value is above AED 5 million.
Current rates are ranging from 2.99% to 4.99%. Please note that the mortgage rates may change on a monthly basis, depending on the lender and the product type. Kindly contact us now for accurate rates.
Off-plan mortgages are possible, and we can find the best options for you. However, banks approve off-plan purchase mortgages more quickly if the property is being developed by a well-known and established builder.
Yes, we can help residents and non-residents get a mortgage to finance their handover payment.
We understand your concern due to the global pandemic situations. So far, your mortgage will continue as mentioned in the policy, and you can continue making your mortgage payments regularly.
However, if you are facing financial difficulties due to the pandemic restrictions, please contact the lender for suggestions. The Central Bank of the UAE has announced AED 100 billion economic stimulus package to tackle the financial friction resulting from the pandemic. The CBUAE has also ordered banks to grant temporary relief for up to six months.
The rules and the situations related to the pandemic are constantly changing, and therefore, we request you to contact one of our representatives for the latest updates.
In a flat interest rate method, the interest is calculated on the total borrowed amount, and the interest rate remains the same for the entire term of mortgage payment.
In a reducing rate system, the interest is calculated after every payment, taking only the remaining amount into consideration. So, the interest rate reduces with every payment.
Banks can present their schemes attractively for their benefits. Therefore, you must take your time understanding what type of interest rate is being applied to your mortgage.
A security cheque is collected from the applicant as a safety measure for the bank. If you fail to pay your mortgage payments, the bank will cash the cheque, and when it bounces, they can take legal actions to recover the mortgage amount.
A security cheque is an undated cheque you must submit as a guarantee to the bank prior to your mortgage approval. Your security cheque must cover the entire credit amount as a minimum.
Yes, your housing allowance will contribute towards your affordability. If you are employed, and your contract or salary certificate mentions that you will be paid a housing allowance if you don’t use company accommodation, then that allowance will be taken into account by the bank while calculating your affordability.
Yes, all bonuses contribute towards your mortgage affordability. However, if the bonus amount is guaranteed and mentioned clearly on your contract or salary certificate, it is easily accepted by all banks.
A fixed rate of interest is a flat rate that remains the same for a period of 1 to 5 years. After this period, the rate is shifted to the reversion rate.
A variable rate is a combination of 1, 3, or 6-month EIBOR with a fixed percentage added by the bank. Therefore, the variable rate can go up and down depending on running EIBOR rates. The mortgage payment interests will be calculated by adding the bank’s fixed percentage to the running EIBOR rates every time.
The easiest way is to start by speaking to one of our highly experienced representatives about your mortgage requirements. From that point on, your mortgage process will be highly hassle-free and fast.
First, you will need a pre-approval. The pre-approval can take up to 5 working days, however, this time may change according to the bank’s policies and other complexities of your case. Once the pre-approval is confirmed we manage the entire mortgage processing on your behalf until completion, to make it as fast as possible.
Start by speaking to one of our representatives. We will then assess your situation and your borrowing capacity to find the most suitable solutions and mortgage schemes for you. We also help you with the pre-approval. Once you have finalized the property you want to buy, we will then handle the entire mortgage procession on your until completion, to make it as fast as possible.
Generally, we’ll need,
Additional documents may be required depending upon the circumstances and loan specifications. Contact us, and we’ll be glad to discuss further.
In simple words, a mortgage is a property loan given to you to purchase residential or commercial properties in the UAE. The property of purchase acts as a security against the loan granted to you, and you have to pay back the loan in monthly instalments, which also includes the interest rates charges by the bank for the mortgage.
Yes, banks do allow a percentage of the cost of purchasing to be incorporated into the mortgage. However, this process requires detailed consultation. Please contact one of our representatives, and we will be glad to help.
Yes, you can easily apply for a mortgage to make final payments to the developer, and all the payments you made before the application will be considered part of the down payment.
There are several different types of mortgage products in the UAE. Here are a few of the main types for better understanding.
all of the above products are available as conventional or Islamic finance. Contact us now for more details about the various types of mortgage products in the UAE.
Exclusive mortgage products are offers that are not available to the general public. These offers are provided to us directly by the bank due to our long-term productive relationships with them. We have a wide range of exclusive mortgage products waiting for you at Payless4Mortgage. Contact us now and we can discuss this in more detail with you.
While choosing a mortgage, you should make sure that the product suits all your needs precisely. Banks can be manipulative with this. That’s why recommend that you contact highly experienced advisors like Payless4Mortgage.
We have contact with the top lenders in the country, and therefore, we can find you customized solutions transparently, ensuring that you receive maximum benefits from your mortgage.
We also have access to some exclusive mortgage products for you. We will discuss extensively the benefits and flaws of every scheme and move forward only after you’ve understood well about the process.
So overall, going through a professional advisor is the easiest way of finding the right mortgage for you.
The pre-approval is a statement from a bank that they have pre-approved you. After reviewing your application, the bank will issue a letter stating that they are ready to give a loan for the required amount to the applicant. This statement makes the entire purchase and mortgage processing faster and reliable for you. The validity of a pre-approval is 60 days.
Getting a pre-approval makes the entire mortgage process fast. Once you have the pre-approval you can look for properties, and as soon as you locate the property you like, you can quickly move forward with your bank of choice.
The prospective sellers will take you as a serious buyer if you have a pre-approval. In simple words, a pre-approval also brings solidity to your buying process.
All banks perform credit checks and having a good credit score is essential for quick mortgage approval. Al Etihad Credit Bureau is the UAE federal government-owned credit check organization. You can get your credit report easily through their official app for a small fee.
EIBOR, or the Emirates Interbank Offered Rate, is the running rate at which banks lend money to each other. These rates change every day, and you can track the daily rates on the Central Bank website.
A salary transfer is when your employer submits a statement to the bank that any end-of-service gratuity will go to the bank if you leave employment for whatever reason. Some banks can offer a slighter lower rate for your mortgage if you undertake a salary transfer to them. If you are confused about the salary transfer, contact us now so that we can discuss this in detail and find the right solutions for you.
Banks will charge a bank valuation fee, which can be around AED 2000 – 5000, and a bank arrangement fee ranging between 0% to 1.5% for their mortgage services.
If you are looking for a property in Dubai, you will have to pay an additional 0.25% plus an AED 290 as mortgage registration fees.
If the property value is under AED 5million, the down payment would be 20% of the property value for Expats and 15% for UAE nationals. And the down payment is 30% for an Expat or 25% for a UAE national if the property value is above AED 5million.
Under Shariah Law, it is forbidden to charge interest on a loan. Therefore, Islamic mortgage does not charge interest rates. Instead, the bank purchases the property for you and then gives it to you on lease or rent for a profit.
In a conventional mortgage, the bank provides a loan, and you need to pay interest on it.
Usually, banks allow penalty-free overpayments of up to 50% of the outstanding balance. For a fixed rate of interest, the bank may allow your overpayments only after the fixed-rate period. However, different banks have different policies for overpayments.
Early settlement attracts a penalty of about 0% – 3% of the outstanding mortgage balance. However, this rate may depend on whether you use your own funds, sell the property, or pay through refinance from another bank.
Yes, non-residents can surely apply for equity release. We can ensure that the process takes minimal paperwork, and you can get up to 55% of the total property value released.
Generally, 0.05% of the property value is charged as buildings insurance by the bank. However, different banks may have different policies regarding buildings insurance
The NOC or No Objection Certificate is a legally acceptable document provided by any organization, to state that there is no objection to clauses made within the document.
In terms of property purchase, banks require the NOC on your name issued by the property developer. The developer will state in the NOC that all the service charges and utility bills related to the property have been paid. And that there is no objection from the developer’s side on the individual buying the property.
A title deed is a legal document registered at the Land Department showing the ownership of the property. If you have a mortgage on the property, the title deed will have your name as the owner. However, the bank will have possession of your title deed until the mortgage is paid in full.
MOU or Memorandum of Understanding is a legally acceptable document of the agreement signed between you, the seller, and the real estate agent. The MOU will have all the terms and conditions related to the property you plan to buy. As your advisor, our representative will check the MOU and confirm that everything is in place before you sign it.
The additional fees related to the property purchase may have slight differences depending upon whether the property is in Dubai, Abu Dhabi, or another Emirate. Here’s a list of generally applicable fees to give a better idea.
Generally, banks take only 50% of the monthly income into consideration while calculating your mortgage affordability. All your other credit liabilities and approximately 5% of all your credit card limits will be then deducted from the 50% of your monthly income to determine your affordability. Based on this affordability, a stress rate ranging from 3% to 8% will be implemented to confirm that you can afford to pay your mortgage if the interest rates increase in the future.
However, different banks may have different policies for calculating affordability, and the factors mentioned above may change slightly.
Yes, you can. However, such an insurance policy is separate, and you will still need the mandatory life insurance cover required for mortgage approvals in the UAE. Also, your bank will not provide this type of insurance plan. But we can connect you to top insurance advisors who can help you with this
Yes, banks will consider joint applications with your spouse as long as one of the applicants is employed and capable of loan repayment.
Yes, according to the federal laws in the UAE, life insurance is mandatory to get a mortgage in the UAE. Usually, the bank that will provide the mortgage will require you to buy their life insurance cover. But we can connect you to banks that accept external life insurance policies as well.
Yes, self-employed individuals are eligible for a mortgage in UAE. Banks have different schemes for employed and self-employed individuals, but we can find the best options for you.
The age limit for mortgage term is 21 to 65 for employed Expats, and 21 to 70 for self-employed Expats and UAE nationals.
The maximum tenure for a mortgage in UAE is 25 years. This time period may decrease according to your age.
The rates and other mortgage terms will strictly depend on your credit affordability. However, we will always try our best to find you the best rates available for you. Contact us now to find out.
Yes, non-residents are eligible for a mortgage in the UAE, and Payless4Mortgage makes the process extremely simple for non-residents. We will just require three months’ bank statements and a copy of your passport to initiate the process.
Yes, Expats are eligible for a mortgage in UAE. In fact, you can borrow up to 75 % of your total property value for your first purchase if the property value is below AED 5million, and up to 65% if the property value is above AED 5million.
The most crucial requirement is that you must be capable of demonstrating a valid monthly income via legal sources like salary, commission, and rental income. Please contact one of our representatives, and we’ll be glad to assist you through the entire process.
Yes, you can leave the country by keeping the property as a buy-to-let. As long as you can be regular with your mortgage payments, there won’t be any problems.
Freehold property is where you have complete ownership rights of the property, and leasehold property is where you lease a property just for a certain period. Leasehold properties are rare in Dubai and the UAE, however, there are some areas like Silicon Oasis and Green Community where we can find a leasehold property for you if needed.
Yes, there are mortgage options for both, financing land purchase and construction as well.
You can get a mortgage for property types such as leasehold, freehold, gifted, and land-gifted properties.
Mortgage broker or a mortgage advisor is an experienced professional capable of arranging an agreement between you and the bank for financing your property purchase.
A mortgage broker is an experienced professional who will stand on your behalf to simplify the complicated processes of the mortgage. Reliable mortgage brokers like those of Payless4Mortgage will go through several options to find the best mortgage product for your situation. You will also get an expert to advise at every stage of the mortgage process to ensure that you get the maximum benefits from your mortgage.
We aim to eliminate the financial barriers between people and speed up their progress by developing a highly productive network for lenders and borrowers.
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