In general, there are many different types of mortgage products, and the banking sector in UAE has provided different categories, including the following:
Yes, there are basic steps that must be taken when you want to obtain real estate financing. Your first step should be to contact a mortgage consultant to identify your needs and analyze your financial capabilities. Considering the provided information, they can provide a set of solutions and directing you to the best option, and accordingly, your advisor will address the bank and obtain the initial approval for the mortgage. This approval is an important step in determining your purchase trends in terms of location, area, and type, etc.
In addition, real estate developers will take the purchase decision sincerely, when the they are presented with a preapproval.
After selecting the property, the real estate consultant arranges required documents related to the property from the developer, as well as documents from the client and begins to proceed with the bank process and regular follow ups to ensure that there is no delay and explains all the credit details to the client in terms of the monthly installment and the type of interest/profit resulting from the financing and Commissions and insurance fees...etc.
Your advisor's role in the mortgage ends when all procedures are completed with the bank and the real estate developer, and the property is registered.
There are many stages of obtaining a mortgage, and the time required for each stage varies from one bank to another, and also according to the client’s situation, but the period in most cases ranges from 3 weeks to a month starting from the time of selecting the property, the Real Estate advisor can reduce this period to a minimum through their connections and relations with the bank, and in most cases get an initial approval during an early stage.
In the UAE, there are two main types of mortgages, the first is Real Estate Islamic financing and the second is commercial (conventional) real estate financing
The main difference between the two patterns is in calculating the bank’s profits from financing. The approach of Islamic financing is that the bank calculates its profits on the Murabaha system or the leasing system, while in the commercial or traditional method, the calculation is done by setting an interest rate, either fixed or variable, over the span of the loan
You can contact our mortgage consultants to get an insight on the calculation segments and details.
A group of banks operating in the UAE market offers a range of financing solutions for construction and development included in the mortgage services they provide. Although the conditions for obtaining this type of financing differ from financing for ownership, the banks that provide this type of service set their conditions easily and uncomplicated manner for the majority of its clients
Contact one of our mortgage consultants for more information
The age of the client when it comes to mortgage services depends on the capacity of the applicant, as well as whether they are a citizens or a residents. In both cases, the age of the applicant should be above 21 years, while the age of the citizen applicant at the date of the last installment should not exceed 70 years and 65 years for residents.The age of the client when it comes to mortgage services depends on the capacity of the applicant, as well as whether they are a citizens or a residents. In both cases, the age of the applicant should be above 21 years, while the age of the citizen applicant at the date of the last installment should not exceed 70 years and 65 years for residents.
Yes, a group of banks operating in the UAE market has developed solutions for such cases and provided policies for non-resident clients with a group of additional requirements that clients can easily meet and provide
Contact one of our real estate finance consultants to answer your inquiry in this regard
You need to evaluate the Offered solutions to determine your current and future financial capabilities. This stage is considered one of the most important stages in the real estate financing process. If you are unable to determine your financial capabilities, consequently; it may lead to areas of credit stumbling with banks and dealing with the bank through legal channels undesirable by both parties, the client and the bank. Hence, our consultants provide real assessment tools for our clients, which are done by calculating all the possibilities that could interfere with the client’s life path, which affects the overall financial ability of the client
After that, always try to evaluate the solutions provided for each in totality. Do not look at the interest rate exclusively or the financing limit only, but try to analyze the costs of credit from all sides. Our consultants provide a set of assessment tools that take into account all the elements of credit solutions.
Many banks leave the option to the client to transfer the sources of income to the bank or not, but it is worth mentioning that the transfer of the sources of income gives the client preferential privileges in the financing, whether at the interest rate/profit granted on the financing or through exemption from several fees, etc. Therefore, our consultants advise clients to transfer sources of income to the bank to be able to obtain the best financing solutions for them
Contact one of our consultants for more details.
What is meant by the concept of analyzing the ratio of the financial ability to get a loan, i.e. is the financial ratio available in the client's sources of income, which allows the client to get a loan.
To illustrate this ratio, we will give a simple example:
A client whose total monthly sources of income amount to AED 50,000, and his financial obligations are distributed as follows:
A car loan with a monthly installment of 2500 dirhams.
Personal loan with a monthly installment of 2000 dirhams.
A credit card with a revolving credit limit of 50,000 dirhams (5% of the limit granted on the card is calculated as a monthly obligation on the client)
Based on the above, we notice that the total obligations of the client is = 2500 + 2000 + 2500 = 7000 dirhams.
The percentage of the total obligations is calculated from the total sources of income = (7000 / 50000) * 100% = 14%
The bank allows the client to be granted a mortgage that amounts to 50% of the total income along with his monthly obligations. Therefore, in the previous example, the client can get a loan with a monthly installment that amounts to 36% of his income sources, i.e. with a monthly installment of 18,000 dirhams.
In light of this, your mortgage advisor begins calculating the value of the loan that you can obtain, taking into account the client's age to calculate the years of the loan and the interest/profit rate.
Contact one of our consultants to calculate your financial ability to get a mortgage and calculate the amount of financing that you can obtain.
Financing solutions are offered to different spectrums of clients from different sources of their income, and people with special projects can obtain real estate financing products within conditions that have been set to suit their sources of income.
You can contact one of our consultants to clarify all aspects in relevance to this topic and inform you of the requirements for obtaining your mortgage.
It is an acknowledgment by the bank of the pre-approval to grant the client a mortgage. This approval is not considered binding on the bank until all requirements for obtaining a mortgage are completed by the client per the terms and conditions of the bank on such type of credit services. Usually, the validity of this approval is 60 days from the date of informing the client of it.
Its importance lies in the client's knowledge of the financing limits with which the property can be purchased, in addition to the fact that the real estate developer looks at it as an indicator of the client's seriousness in buying.
Yes, there is an agreement that must be signed between the client (the buyer) and the real estate developer (the seller). This agreement is the Memorandum of Understanding (MOU) between the two parties in which the property data is included in addition to the agreed value, payment terms, details of financial payments, and their dates. Which is an important required document in the real estate financing transaction.
Our consultants always study these agreements and review them with you to verify the data entered in them before you sign them.
Yes, this can be done according to several bank policies in the UAE market, provided that the bank is provided with detailed documents reinforcements for these sources from the company you work for and financial statements from the bank to which it is transferred.
Contact our consultants to explain this aspect to you in more detail.
Credit banks depend on the policies of determining the limit of credit financing on real estate financing programs based on several factors, but the most important of these factors is the value of the property and the character of the borrower, which is agreed upon by the majority of banks in the UAE market, and this can be clarified through the following table:
|Value||citizen||Residing in the UAE|
|5 million dirhams or less||85% of the property value||80% of the property value|
|5 million dirhams or more||75% of the property value||70% of the property value|
Yes, the credit policies in banks operating in the UAE market have identified a basic set of documents that must be provided to the bank to obtain mortgage. These documents vary according to the client’s capacity (UAE citizen/resident in the UAE), the most important of these documents, for example, but not limited to:
And several additional documents that are related to the status of the client, and here you can communicate with our real estate finance consultants to know in detail all the documents required of you personally.
In fact, yes, it is a prerequisite according to the instructions of the Central Bank of the UAE, but this insurance is provided by the bank with the loan, in other words, the client is not required to provide this type of insurance, as the bank provides it with the loan.
Of course, this does not limit your freedom, taking into account the need for the client to be committed to paying the installments due on the financing on time.
There are some fees incurred on getting a mortgage, which is specified in terms of value and percentage for each affiliated bank, and it differs from one emirate to another in the United Arab Emirates.
You can contact one of the advisors to clarify these fees, depending on the disbursing bank
All banks in the Arab Emirates, and per the instructions of the Central Bank of the United Arab Emirates values to examine the indicators capacity of the credit of any client who submits a credit application of any kind, and this is done through the Al Etihad Credit Bureau platform..
Certainly, you can, and in some cases, our consultants recommend that for raising the financing limit; if the original client has a somewhat high debt burden that prevents reaching the desired limit to purchase a specific property.We recommend contacting one of our consultants to obtain detailed information in such cases..
According to the instructions of the Central Bank of the Emirates, it is not allowed to do so. On the other hand, the bank allows clients to take a personal loan to pay the fees incurred in the process of buying a property.
Our consultants offer a range of solutions for such cases. We recommend contacting one of our consultants to obtain a set of solutions in particular.
This depends on the purpose of paying these extra payments and the size of the increase. For example, if the purpose is to transfer the loan from one bank to another, many banks subject the process to additional commissions, while if the increase is less than 50% of the outstanding balance of the loan, many banks do not charge any commissions on such cases.
Check with our consultants about these cases depending on the bank you have chosen to obtain the mortgage from.
Yes, it is possible, in line with several credit policies of some banks, and accordingly, we recommend communicating with our mortgage advisors to provide the most appropriate solutions according to the client's situation and the bulk of credit granted.
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