If you are looking to buy a property in UAE then you can buy the property in two ways i.e. with cash or on a mortgage. Where a cash investment may be overall more cost-effective, a mortgage gives you better flexibility regarding how to manage your finances.
So if you are planning to buy a property in UAE through a mortgage here is the information that can help you in order to get a clear vision about this.
What documents are required?
When applying for a mortgage, the documents you will need may vary depending on which bank you are using.
Lenders are likely to ask you for the following:
- A copy of your passport;
- Proof of residence in the UAE and proof of your current address(when you are a resident of UAE);
- Financial documents, such as proof of salary, bank statements, or your tax return.
If you’re a non-resident:
- A copy of your passport;
- Your bank statements for the past three months.
Step by step on how to get a mortgage in UAE:
- At the very first step, you need to decide whether you want to approach the bank directly or go with the help of a broker;
- Study thoroughly all the different type of mortgage available and then decides which one is the best for your circumstances;
- Obtain an agreement in principle from the bank and ask for a letter providing evidence of this;
- Search for the suitable property within your budget and then make an offer for that property;
- Once you have agreed on a price, pay your deposit to confirm your purchase and agree on a completion date;
- On the completion date, the mortgage lender will release the funds to the seller.
Refinancing a mortgage in the UAE:
The mortgage market in the UAE is very competitive, and this is good news for homeowners who are finding to switch deals, as the best offers tend to be available to people with existing mortgages.
So if you are looking to switch deals, go to your current bank first. Some lenders will give you more flexibility or discount on your current loan. However, while some banks offer fee-free remortgaging, most will charge you to switch.
