8 Tips For Getting A Luxury Property Mortgage In Dubai

Dubai’s luxury property market is expanding, with deals exceeding AED 10 million expected to increase by 69% in 2022. Whether you want to buy a luxury home to live in or as an investment, you might need a mortgage to help fund the transaction. Although obtaining a mortgage for a luxury home can seem difficult, according to property experts and real estate agents in Dubai there are actions you can do to streamline the process and improve your chances of being approved. Here are 8 suggestions to help you obtain a mortgage for your opulent Dubai home.

Prepare your deposit

According to UAE Central Bank regulations, foreigners and non-residents when looking for properties for sale in Dubai for less than AED 5 million must put down at least 20% of the purchase price (15% for UAE citizens). This rises to a 30% deposit requirement for properties over AED 5 million (25% for UAE nationals), or a 35% deposit requirement when buying a second or subsequent property.

Get your papers ready

When you seek mortgage services in Dubai make sure you have the necessary documentation on available because the bank will require it in order for you to be approved for a luxury property mortgage in Dubai. A copy of your passport, visa, Emirates ID, proof of income (if you are employed), a trade licence (if you are self-employed), and bank statements are the most frequently requested documents. Further supporting documentation may be needed by the bank to confirm your employment, sources of income, and liabilities.

Verify your credit score

Your credit score will be analysed by banks to determine your creditworthiness and likelihood of timely mortgage repayment. A good credit score indicates that you have a history of timely debt repayment, but a history of missing payments, mortgage defaults, or bankruptcy might raise serious red lights. The Al Etihad Credit Bureau (AECB) is in charge of issuing credit reports in the UAE. You should check your credit score on their website and, if necessary, take action to raise it.

Increase your capacity to borrow

To assess how much you may borrow, lenders will consider your income, costs, and debts. To determine what monthly mortgage payment you can afford comfortably, they normally take into account your income less any debt repayments and costs. So, you should think about growing your income, paying off any outstanding debts, and cutting back on costs if you want to increase the amount you can borrow.

Take into account the mortgage’s term

Mortgages can last for a maximum of 25 years in the UAE, however their lengths vary. Although a longer mortgage will result in lower monthly payments overall, it will cost you more in interest over the course of the loan. It’s crucial to think about the mortgage term that is best for you. Do you prefer the flexibility of a smaller monthly payment made over a longer period of time, or are you okay with a higher monthly payment to pay less interest and pay off your mortgage sooner?

Recognize the expenses involved

To purchase a luxury property in Dubai, you’ll need more cash up front than just the deposit. Other costs to think about include legal, registration, and property value expenses. Make careful to take these expenses into account when figuring out how much you can borrow from your budget.

Get in touch with a mortgage broker

We strongly advise dealing with a knowledgeable mortgage broker if you’re searching for a mortgage for a luxury home in Dubai. You can get specialised market and finance information, access to special rates, and step-by-step guidance that includes the purchasing procedure, fees, timeframes, and borrowing restrictions from a mortgage broker.

Get pre-approval

You have a mortgage up to a particular amount and have been pre-approved by a lender. Obtaining pre-approval before beginning your property hunt is a wise move. This can help you determine your borrowing capacity as well as your budget while looking for a home. Pre-approval also demonstrates to sellers your seriousness and ability to fund the acquisition, increasing their propensity to accept your offer.

Get the best mortgage advice available

It takes considerable planning and preparation to obtain a mortgage for a luxury home in Dubai, and it is highly advised that you work with a seasoned mortgage expert.