This cannot be narrowed down to one particular factor. A plethora of factors exist namely:
a) Is the homeowner (mortgaging) financing available on freehold properties?
Yes.
Home financing is available from the following sources:
Mortgages are offered by the following sources:
A range of other banks and financial institutions are starting to offer mortgages as well, with varying criteria. No financing institution is offering mortgages on freehold developments of any private developers as yet.
b) How do I get finance?
A checklist of loan criteria exists with each loan providing entity. The loan criteria need to be fulfilled and the purchaser is mandated to provide the necessary documentation which includes but is not limited to: Copy of passport(s) for property purchaser(s), Bank Statement(s) of property purchaser(s) for 1 year, Credit History – Credit Bureau report (EQUIFAX, D&B, etc.), bankers reference, credit card report.
c) When does the financial institution start charging interest?
This depends on the bank. In most cases, interest is accrued during the construction period. The purchaser would have to pay/clear this amount on handover. The purchaser will have to repay principal and interest installments for the tenure of the loan.
d) What will be the APR or Interest Rate? What is the compounding method?
This varies from bank to bank between 5.5% to 6.5% p.a. payable on a declining principal balance. It may be monthly or quarterly.
e) What are the mortgage tenures?
Between 5 to 15 years depending on the financial institution.
f) Do banks or financial institutions send the statement every period to our overseas address?
Yes, which could be monthly or quarterly.
g) Who should we make the payment out to?
Payments should be made out:
h) Is a mortgage registered at the Govt. of Dubai Lands Dept.?
Yes, when the purchaser’s financing becomes a realty mortgage, it gets registered on a per property basis at the Govt. of Dubai Lands Dept. Mortgage Section