The Dubai mortgage market is complicated compared to mature international markets where mortgages have been on offer for many years. In Dubai, mortgage lending is only four years old and buyer affordability is calculated differently by each lender.
Currently there are 24 lenders in the Dubai mortgage market offering a range of mortgage facilities. Unless you have time to research the entire market, it can be invaluable to use an independent mortgage advisor who can guide you through the process and help you choose a lender with the best financial package for you.
It is possible and preferable to secure a loan prior to actually finding a property you want to buy. That way you are more likely to be able to buy the property you want, fast. Here’s a step-by-step guide to securing a mortgage in Dubai, whether you are resident or non-resident.
Step 1
Determine the level of borrowing which is available to you by talking to a mortgage broker or bank. This will enable you to determine your budget.
Step 2
Short-list the developments that interest you. Your budget limit and choice of development will narrow down your choice of bank. (Lenders in Dubai pre-select which developments they will finance).
Step 3
Once you have chosen your lender, collect together the supporting documents required by your particular lender. Document requirements differ depending on whether you are company-employed, self-employed, resident in Dubai or non-resident.
But generally, document requirements include: 6 – 12 months of bank statements, copy of passport with visa page, proof of current address (utility bill/tenancy agreement), letter from employer confirming income, or a minimum of 2 years audited accounts if self-employed.
Lender-approval should be received within 7 – 10 days.
Step 4
You are now in a position to select the particular unit in the development of your choice. At this stage, typically a 5 – 10% holding deposit will be required. Once a sales agreement has been signed both parties, the lender instructs a property valuation by an independent valuer.
Step 5
On approval, the bank draws up a mortgage offer/contract, which is received within 7 days. It is signed and returned to the bank. A transfer date is set, when the Estate Agent, Seller and Buyer attend the transfer of the property title deed at the master developers office or the Land Department.
To get the ball rolling you may find the following documents useful:
An Introduction to propertyfinancelink.com
For all your property finance needs visit: www.propertyfinancelink.com
