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Dubai is a location where many global professionals or expats wish to live and work. While renting helps to settle down fast, many expats would like to stay in their own homes. For this, they may seek a mortgage from a financial institution. Gaining expat mortgages in Dubai can be smooth sailing if one follows the right advice. Following are some key tips to gain a mortgage and purchase a property in the UAE.
Keep ready the down payment
An expat has to keep ready at least 20% of the investment as a down payment for securing a mortgage. Unlike other countries, the UAE rules stipulate that the maximum one can borrow as an expat for a residential mortgage is 80%, and the remaining 20% must be arranged as a down payment.
It is important to have a good credit score in order to gain a mortgage. In the UAE, the Etihad Credit Bureau maintains this information. One can make a request for a copy of one’s credit report from this bureau so that one can correct or improve one’s credit score before applying for a loan.
One can approach a mortgage broker to help with the mortgage application process. This way, one can benefit from the latter’s experience as well as positive ties of working with banks. They can advise one about the best personal loan, help with the paperwork and make everything in order before one makes the mortgage application. Brokers are most useful for new expats to the UAE.
Gaining a pre-approval letter is the most crucial aspect of securing a mortgage in Dubai. This refers to an official document that is typically issued by a bank that validates one’s eligibility to gain housing finance. It includes details like the maximum available limit of borrowing.
The possibility of securing a loan from a bank depends on how one presents oneself to the bank in one’s application. The more one seems like a risk-free and reliable party, the better the chances of securing a loan.
A strong factor in one’s application is whether one is applying to a single person or jointly with a spouse. Two applicants imply more buying power but also more paperwork. So, one must decide on this aspect quite early enough to determine how much one can borrow and the fact that adding an extra applicant is tough down the line.
In sum, these are some tips for securing expat mortgages in Dubai.