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Everything you need to know about our products.
A mortgage is a specialized loan designed for buying ormaintaining a home, land, or other real estate properties. It's a formal agreement between a borrower and a lender, often a bank or financial institution, and is overseen by the regulatory authority of the UAE Central Bank. Key elements of a mortgage include the loan amount, interest rate, repayment terms, and any associated fees, all of which are specified in alegally binding contract outlining the rights and obligations of both the borrower and the lender.
The initial step isto reach out to one of our mortgage experts. Upon contacting us, we will review your profile and evaluate your borrowing capacity. Our team will then guide you through the pre-approval process, ensuring you have a clear understanding of your options and assisting you every step of the way. We are dedicated to helping you find the lowest rate in the market, along with the best product tailored to your specific needs.
If you approach banks directly, you're limited to their own products, which may not always be the best fit for your situation. However, at Finask, we go the extra mile. Our team conducts thorough research, leaving no stone unturned to find you the most competitive and lowest available mortgage rates in the market. We'll present you with multiple options from various banks, ensuring you have a comprehensive view of what's out there. With access to all banks in the UAE, we're equipped to provide you with the best-suited options tailored to your specific needs.
The documents required can vary based on your unique profile. For detailed guidance tailored to your specific circumstances, please reach out to our expert mortgage brokers.
However, for the initial application submission, here's what you'll typically need based on your client type:
For Salary-BasedClients:
For Self-Employed Clients:
The borrowing amount is primarily determined by your income and existing liabilities. Take advantage of Finask Calculator to get an estimate, and don't hesitate to contact one of our mortgage experts for a precise calculation tailored to your profile and the policies of various banks. We're here to provide personalized guidance and support every step of the way.
The required down payment varies based on the property value. For properties under AED 5 million, expatriates typically need a minimum down payment of 20%, while UAE nationals require 15%. For properties over AED 5 million, expatriates need a minimum down payment of 30%, while UAE nationals require 25%. These down payment requirements ensure compliance with regulatory standards and may vary depending on the property value and your residency status.
In a conventional mortgage, your loan repayments include paying interest to the bank as their profit for lending you the funds. However, Islamic Home Finance operates differently due to Shariah Law, which prohibits charging interest on loans. Instead, banks purchase the property on your behalf and rent or lease it back to you for a profit, making Islamic Home Finance compliant with Islamic principles. This distinction ensures that individuals seeking Shariah-compliant financing have options that align with their beliefs and values.
Yes, we can assist you with Off-Plan Mortgages. It's essential to understand that mortgages for off-plan purchases are typically available for projects undertaken by larger, established developers. For detailed information regarding eligibility and available options, please contact our expert mortgage advisors.
When obtaining a mortgage, various fees come into play. Here's a breakdown:
These fees are essential considerations in the mortgage process, and our expert advisors can provide further clarification and guidance tailored to your specific circumstances.
Mortgage pre-approval marks the initial phase of the property buying process. During this stage, the bank assesses your application and issues a letter or email confirming your pre-approval, indicating their willingness to lend you the requested amount. Typically, valid for 30-60 days (depending on the bank), this pre-approval provides assurance that the mortgage approval has been secured under specified terms from the bank. It instills confidence, allowing you to negotiate on properties with the knowledge that transactions can be swiftly concluded.
EIBOR, or Emirates Interbank Offered Rate, is the benchmark interest rate at which banks in the UAE lend to each other. These rates are subject to daily fluctuations. To stay updated on the latest EIBOR rates, you can easily check them on the Central Bank website by visiting the link provided here. https://www.centralbank.ae/en/forex-eibor/eibor-rates/
Getting a mortgage in the UAE is accessible to a wide range of individuals, including UAE Nationals, UAE Residents (expats living in the UAE), and non-residents. However, it's important to note that the process, including rates and terms, may vary depending on your residency status.
At Finask, we specialize in a variety of mortgage solutions to meet your needs. Whether you're a first-time homebuyer looking to secure your initial mortgage or seeking assistance with existing mortgages, such as buyouts to transfer mortgages between banks, or equity releases for a second mortgage, we've got you covered. Additionally, we provide support for commercial mortgages, catering to both residential and business property needs.
For properties priced under AED 5 million, the maximum Loan-to-Value (LTV) ratio for expatriates is 80% and for UAE nationals, it's 85%. However, for properties exceeding AED 5 million, this decreases to 70% for expatriates and 75% for UAE nationals. Non-residents can typically expect an LTV range between 50% to 80%.
Calculation of your mortgage affordability involves several factors, although methods may slightly vary among banks. A general guideline is to allocate approximately 50% of your monthly income towards mortgage payments.
From this amount, banks will deduct any existing credit commitments, such as car loans, personal loans, and approximately 5% of your credit card limits, to establish your maximum affordability.
Additionally, a stress test will be conducted using a stress rate of interest, typically ranging from 3.5% to 8%, depending on the bank. This test ensures that you can still afford your mortgage repayments even if interest rates increase to the stress level.
To gain a clearer understanding of how much you can afford, utilize our affordability calculator available here and contact one of our mortgage experts.
A mortgage down payment refers to the initial payment made by the buyer towards the purchase price of a property when obtaining a mortgage loan. It's typically a percentage of the total purchase price, and it's paid upfront at the time of purchasing the property. The down payment is subtracted from the total cost of the property, and the remaining amount is financed through a mortgage loan. The size of the down payment can vary based on factors such as the type of mortgage, the lender's requirements, and the buyer's financial situation.
No, the down payment cannot be paid from the mortgage or any other type of finance. It's an initial cost that you must have readily available for payment. However, some banks may offer assistance in financing a portion of the client’s DLD fees and broker fees, provided they meet certain eligibility criteria.
Yes, mortgages are available to cover the final payments owed to developers in the UAE. Any payments already made to the developer would be considered part of the down payment.
Obtaining pre-approval for a mortgage is crucial for several reasons, especially in the current market landscape. Firstly, banks have varying criteria for lending, and pre-approval ensures you understand your borrowing capacity based on your unique profile. This knowledge empowers you to confidently explore properties, knowing you have the financial backing to proceed swiftly with your chosen bank once you find the right property.
Moreover, pre-approval signals to sellers that you're a serious buyer, not just a casual observer. This enhances your credibility and positions you favorably during negotiations, potentially leading to a better deal on your dream property.
The mortgage pre-approval process usually takes between 5 to 14 working days. However, timelines may vary depending on the bank and your specific circumstances.
Once pre-approval is secured and you've chosen a property, we'll handle the remainder of the process until completion.
To find the best mortgage product for your needs, it's crucial to explore beyond what your bank offers. We recommend consulting with expert mortgage advisors like Finask. With access to the entire market, including exclusive products, we provide unbiased advice tailored to your situation. Our brokers offer insights into the pros and cons of various options, empowering you to make an informed decision that aligns with your goals.
A fixed-rate mortgage maintains the same interest rate throughout the entire term of the loan. This means your monthly mortgage payments remain constant, providing stability and predictability.
A variable-rate mortgage, also known as an adjustable-rate mortgage (ARM), features an interest rate that can fluctuate over time. Typically, the initial rate is lower than that of a fixed-rate mortgage, but it can change periodically based on market conditions.
Yes, some banks offer the option to include a portion of the costs associated with purchasing a property into the mortgage. This can help significantly reduce upfront expenses. For detailed guidance on this option and to explore whether it's available to you, our expert mortgage brokers are available to provide personalized advice.
In the UAE, the minimum age requirement for a mortgage is typically 21 years. However, the maximum term length varies based on factors such as employment status and nationality.
-Employed expats: Eligible for mortgage terms up to age 65.
-UAE nationals and self-employed expats: Can be eligible for mortgage terms up to age 70.
These age limits ensure that borrowers have sufficient time to repay their mortgage while considering their employment status and nationality.
With freehold property, you own both the land and the property outright, whether paid in cash or through a mortgage. Leasehold property grants usage rights for a limited time, usually around 99 years, with ultimate land ownership retained by the landlord or government.
While freehold ownership is more common in the UAE, leasehold properties are available in select areas like the Green Community and Silicon Oasis. Understanding these differences aids in making informed real estate decisions.
Refinancing is advisable if you have a variable rate or if your fixed rate is set to become variable within the next 3-6 months. In the UAE, mortgages often transition to variable rates after fixed terms, based on factors like Bank Margin and EIBOR. This exposes borrowers to potential payment increases as rates rise. For instance, a 1 million AED mortgage could incur an additional 40,000 AED annually. Given the anticipated rise in rates due to inflation, failing to refinance to a fixed mortgage could lead to continued payment hikes. Explore refinancing options here.
The mortgage refinancing process is simplified with Finask. First, we evaluate potential savings and compare fixed-rate options to find the best fit for your needs. Once you've made your choice, we assist you in securing refinancing approval from the bank and guide you through the entire process.
The entire refinancing process typically takes about 5-10 business days.
For further information on refinancing your mortgage, please contact us here.