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Know How Terms


  • Loan: The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.
  • Amortization: Repayment of a mortgage/home loan by installments with regular payments to cover the principal and interest. Amortization Calculator.
  • Debt-To-Income-Ratio (DTI): The ratio of aggregate monthly debt to aggregate monthly income.
  • Downpayment: Money paid by a buyer from his own funds, as opposed to that portion of the purchase price, which is financed.
  • EMI: Equated monthly installments
  • Home Equity: Equity is the difference between the home's fair market value and the unpaid balance of the mortgage and any outstanding debt over the home. Equity increases as the mortgage is paid or as the property enjoys appreciation. For example, if your home's market value is AED 100,000 and you owe AED 60,000 on your mortgage, then you have AED 40,000 equity in your home.
  • Eibor: (Emirates Interbank Offered Rate) EIBOR is the interest rate charged by banks in the United Arab Emirates for inter-bank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates.
  • Libor: The London Inter-bank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow U.S. dollars, in the London money market. Like the U.S. treasury and the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
  • Loan-To-Value-Ratio (LTV): The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 70 means that a borrower is borrowing 70% of the value of the property and paying 30% as a down payment. For purchases, the value of the property is assumed to be the purchase price, and for refinances the value is determined by an appraisal.
  • Mortgage: A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans. Calculate Your Mortgage
  • Processing Fee: The fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.
  • Pre Approval: A term used to mean that a borrower has completed a loan application and provided debt, income and savings information that has been reviewed and pre-approved by an underwriter.
  • Approval: After your loan application is completed, a Bank loan processor and underwriter will review to ensure all necessary documents and information are included. They will then make a determination on whether or not youre approved for the loan.
    A Memorandum of Understanding is signed between the buyer and the seller confirming the terms and conditions on the re-sale property transition. The MOU is usually prepared by the broker and is signed by the buyer, seller and the witness.
  • Title Deed: Legal document which is used to prove ownership of a piece of property.

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