Investing in the UAE property market is an excellent way to increase your income stream during your stay in the country, particularly if an accommodation allowance is included in your employment package. Rather than paying sky-high rents, you’ll have the satisfaction of knowing your hard-earned cash is ultimately going into your pocket.
Properties in UAE range from luxurious villas to studio apartments, so there are options that will suit every budget. While some high rollers opt for cash transactions, the majority of residents will opt for home loans. You’ll need to be able to pay a deposit of at least 25% for a home valued at up to AED5 million, while more expensive properties will attract a down payment of 35%.
Mortgages in the UAE are available to residents who can demonstrate consistent income within a certain bracket and over a certain period of time – usually six months unless they’re self-employed. Pre-approvals can be obtained within days when the necessary paperwork is in order, so once you come across your dream home, you can make an offer knowing that it’s within your budget.
Securing the best mortgage rate for residents in the UAE is an essential part of the housing loan process, and tools such as the FAB mortgage calculator will help residents make informed decisions. The amount that can be borrowed will be determined by the resident’s available deposit, duration of the home loan, and nominating a preferred fixed interest period.
The period of fixed interest will unlock some of the lowest UAE mortgage rates over two, three, and five-year periods before switching to the bank’s variable interest rate. Choose wisely, as the selected fixed-rate period has the ability to make a huge difference to your investment over time.
Click here – What Is 8.8 Inches In cm? Convert 8.8 In To cm (Centimeters)
It’s always important to compare the packages lenders are offering for mortgages in the UAE.
There are more than 30 lenders in Dubai alone, but not all are able to extend housing loans to expatriates. The list of those that do include major international and local banks that are in direct competition to secure investments from residents.
The good news is, lenders in the UAE are generous when it comes to mortgage payments. In most European countries, payments are capped at approximately 35%, while in Dubai, the cap sits at 50% of the resident’s monthly income.
To avoid becoming overwhelmed by the options and fine print, engaging a mortgage broker to do the research and compare packages is the best way to find a solution tailored to your financial circumstances and goals. It’ll also ensure you don’t miss any elements of the property market that are specific to the UAE.
As with any property purchase, it’s important to know the lay of the land and understand the legalities and obligations associated. Keep in mind that home prices across the country are stabilising and showing signs of steady increase, so snap up a mortgage in the UAE while the interest rates are still low.
Click here – Why Adult Coloring Apps Are Becoming More and More Popular