The UAE, of late is fast becoming a destination of choice for the many expats who want to invest in its lucrative real estate market. Local Emiratis too are keen to invest and are looking for suitable opportunities primarily in the city of Dubai and Abu Dhabi. Nevertheless, buying a property is always going to be expensive.
But then, there are suitable alternatives and the mortgage market in the UAE is very dynamic and thus, presents you with a lot of options.
Almost everyone capable of providing ample proof of having a sufficient income is entitled to apply for a mortgage. It doesn’t matter if you are a local resident or a foreign expat.
Of course, there are a few things that you must comply with.
Let’s begin by understanding the eligibility criteria.
Unless you are in a position to meet the minimal requirements, it would be futile to avail a mortgage to buy a property. On that front, you need to quality by meeting the conditions listed below:
Borrowing in many ways is capped and is governed by some basic factors, which includes the following:
To be in a position from where you can secure the mortgage, it becomes necessary to provide the basic documents, based on your individual capacity.
To start with, making sense of how mortgage works is an entirely difficult task. At times, it can be complicated. However, for your benefit, we are trying to breakdown the overall cost.
Long Term Rate: Base Rate + EIBOR (Emirates Interbank Offered Rate)
- Base rates may vary from bank to bank. Moreover, EIBOR is standard across banks and is normally published and regulated by the Central Bank of the UAE
Short Term Rates: Most of the banks in the UAE do offer a fixed rate for short term duration, which generally ranges in between 1 to 3 years.
By and large, being a customer, you must focus more on the long term rate. In doing so, you stand to benefit the most, as the popular adage clearly says” the lower the base rate, the better the mortgage.”
The UAE property market is gaining a lot of traction and is popular with most of the foreign expats. So, when it comes to investing in the property market, irrespective of your nationality, mortgages are offered by local as well as international lenders.