Ultimate Guide To Get A Mortgage In Dubai

Here we will tell you everything about applying and getting a property on the mortgage in Dubai.

#1: Choosing the desired property

There are many reputable websites available to find the property you desire in UAE, whether it be ready properties or off-plan properties. There are so many options to choose from as persons with different personalities like different surroundings and lifestyles.

Ready properties are more suitable for those who want to move immediately or start earning from rent right away. Banks usually have lenient terms when you are buying prepared properties in UAE. Here are the simple steps to follow to get a mortgage in Dubai for property investment.

#2: An agreement between the parties.

There are two ways to buy property in Dubai. One is from developers directly, and the other option is to hire a broker or real estate agent to carry the transaction smoothly.

In the first case, the sale contract is between you and the developer, and in the second case, the broker or agent completes the transaction. Keeping a broker or an agent relieves you from the hassle of doing everything on your own for a minor fee.

#3: Required documentation

This phase is extremely important and must be cautiously taken care of because any mistake will result in delays or even cancellation of your request to obtain the mortgage in the first place.

If you are a salaried employees

  • Passport copy.
  • A note of any monthly liability you have to pay is a car loan or credit card loan, etc.
  • UAE identification document.
  • Fee slips for mortgage processing
  • Salary slip
  • In case you are an expatriate, a valid visa
  • Bank statement showing salary amount credited for past six months
  • Proof of availability of money for making a down payment

If you are self-employed

  • MOA or Memorandum of Association, plus incorporation documents.
  • Financial statements certified by the auditor for the past two years.
  • Passport copy.
  • A note of any monthly liability you have to pay is a car loan or credit card loan, etc.
  • UAE identification document.
  • Fee slips for mortgage processing
  • Salary slip
  • In case you are an expatriate, a valid visa
  • Bank statement showing salary amount credited for past six months
  • Proof of availability of money for making a down payment

 #4. Submission of documents and bank’s procedure

Documents are then submitted along with the bank forms. These documents can be submitted by you or your agent working on your behalf. The banks and financial institutions then review all the documentation as per their specific criteria.

#5: Get the pre-approval issued from your mortgage provider

After assessing all the risks and return embedded in each case separately, the bank is ready to issue a pre-approval. Pre-approval is, in fact, a letter with the name of the applicant and the loan amount applied. This document also depicts the tenure of the mortgage and the interest rates involved in the transaction.

We call it a pre-approval letter because a certain condition needs to be fulfilled after the initial processing and assessment are done.

#6: Property visit

This phase is where the property is separately identified and inspected by the bank’s personnel specially designated for the purpose. Along with physical examination, they may require title deeds, contracts, floor plans, etc.

#7: Valuation of the property

After the bank’s personnel visit the place, they provide a report to their valuation team, giving the property’s valuation in question. This is an important phase in the whole process and may require up to 3 days. Normally banks or financial institution charges AED 2,500 to AED 3,000 depending upon the property.

#8: Offer letter

After phase # 7 is complete, you move towards the finalization of the whole process. Provided that all the condition in the pre-approval letter is met, the bank issues a final offer to the applicant. Once read and accepted, all the parties in question sign this document.

#9: Getting the property transferred in your name

The bank or financial institution’s representative schedules the transfer. The land department is responsible for the transfer of properties in most cases, but in some instances, transfers occur at the developer’s office.

#10: Receipt of documents after transfer

After all the formalities are done from the Land department’s perspective, a title deed is an issue with the owner’s name and the bank’s reputation as a mortgage provider or lender.

Keep in view; you only get a copy of this as the bank keeps the original documents. Along with the papers, you also receive the key to the property, and this is a sign that the transaction has been finalized and installment payments will start.

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