What is Required to Get a Housing Loan in Dubai?
Dubai offers mortgage and financing opportunities to international investors, making the property purchasing process more accessible and convenient.
Mortgage is one of the most preferred ways to finance a property. Mortgage allows a large amount of cost to be spread over many years and makes payments easier.
You can review all the details about mortgage in this content we have prepared for you.
Mortgage Application Process
In Dubai banks; When evaluating a mortgage application, they want to make sure that the customer can repay the loan regularly and on time, considering their repayment capacity. Regular employment history and income are two basic indicators that banks use to evaluate a customer's ability to pay.
Before applying for a mortgage, it is also important to reduce your current debts as much as possible. DTI (debt-to-income ratio) is another factor that plays a critical role in the mortgage approval process.
When buying a property in Dubai, an important condition for getting a mortgage loan is the down payment. It should be kept in mind that the amount of the down payment can affect not only the approval of the loan, but also the payment terms.
The mortgage application process generally includes the following steps:
Pre-assessment: As a first step, you need to contact the bank you want to get a loan from and do a preliminary assessment. At this stage, your income status, current debts and credit history are examined.
Preparing the Required Documents: The following documents are usually requested for a mortgage application:
- Valid passport and ID
- Residence permit (if applicable)
- Income document or salary slip
- Bank account statements
- Documents related to the property to be purchased (such as a sales contract)
Filling out the application form: The loan application form provided by the bank is filled out and submitted to the bank with the necessary documents.
Loan approval and valuation: The bank evaluates your application and grants loan approval if you meet the required conditions. At this stage, the property is evaluated and the loan amount is determined.
Signing the mortgage contract: After the loan is approved, the mortgage agreement is signed with the bank. This contract details the interest rates, repayment schedule and other terms.
Loan usage and transfer of ownership: The loan amount is paid to the property seller and the ownership transfer is carried out. At this stage, the title deed is registered through the Dubai Land Department (DLD).
Income level: Banks take into account the applicant's income level and regular source of income. It is generally expected that mortgage payments will not exceed a certain percentage of monthly income.
Credit history: A good credit history increases the likelihood of your mortgage application being approved. Banks evaluate your risk by reviewing your credit history.
Property status: The legal status and value of the property to be purchased play an important role in the loan approval process. The property must have a valid title deed and a positive valuation report.
Equity contribution: Banks usually ask for an equity contribution of a certain percentage of the property value. This can range from 20% to 30% of the total value of the property.
Fixed rate mortgage: The interest rate remains the same throughout the loan period. This type of loan allows for fixed monthly payments and better planning of your budget.
Variable rate mortgage: The interest rate changes at certain periods according to market conditions. This type of loan may offer lower interest rates at the beginning, but may change over time.
Offset mortgage: Your savings account at the bank is deducted from your mortgage balance and you only pay interest on the net balance. This can be an advantageous option to evaluate your savings.
Construction mortgage: This type of loan, offered for projects that have not yet been completed, allows payments to be made at certain stages of construction.
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All these factors should be taken into consideration when getting a housing loan in Dubai. Getting help from an expert real estate company during this process can be a solution that will make you feel safe and can make the property purchase process much easier.
Professional support can help you master all the details of the housing loan approval process and maximize your chances of getting a housing loan.
As Tekce Visa, we offer you comprehensive consultancy services when applying for a mortgage in Dubai. We provide professional support in evaluating mortgage options, preparing the necessary documents during the application process and communicating with banks. We are here for you to have your dream property in Dubai.
