Get An Expat Mortgage in the UAE

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Financial

If you are hesitant to take out a mortgage in the UAE for fear of changing interest rates and prepayment penalties that can double whimsically, here are tips to get expat friendly mortgages.

Opt for fixed rate contracts. Never take out a mortgage with a bank until you have a contract that guarantees the mortgage terms you agree on. It will preclude the bank from changing interest rates and penalties.

Go through the pre-qualification process. You can do this by meeting with the mortgage consultant of the bank where you wish to take out a loan. You need to supply sufficient details about the following things:

  • Your liabilities: It includes all your legal obligations and debts, like existing mortgages, deferred revenues, accounts payable and other loans. If you own a business, the outstanding money you owe to your suppliers or partners is also considered a liability.
  • Your income: It refers to the money you received from work or investments.
  • Your assets: It includes your current assets (cash, inventory and accounts receivable) and fixed assets (real estate, equipment and other resources that provide long-term benefits).

The bank representative shall give you a rough estimate of the amount you can borrow based on the information you give. You must also ask about the requirements for mortgage application.

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Bring all the required papers during the Pre-Approval process. The bank shall check your credit and verify all the financial information you provided to confirm your ability to qualify for the expat mortgage in the UAE. The pre-approval process is quick and simple, but you may need to present your medical records if you have a pre-existing condition. Most of UAE banks also require a life insurance policy for the total mortgage price.

Take note that sellers are most likely to take offers from pre-approved buyers. So, before you track down apartments and villas, get your mortgage pre-approved.

Choose an expat-friendly mortgage lender. A good lender will not only offer the lowest mortgage rates, they can qualify you for a suitable expat mortgage loan. They should also offer advice on ways to reduce penalties and improve your credit rating. You can get the best mortgage lender by comparing mortgage rates and turnaround time and by checking on the banks’ reputation for completing loans.

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The UAE mortgage market can be difficult for expats who have little knowledge of the mortgage procedures. Make sure you deal with a dependable mortgage lender who offers practical expat mortgages in UAE.  You will be buying your dream house in no time.

 

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