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Top 7 Tips to strike the best Home loan Deal in UAE!

Top seven tips

Have you wanted to own your own home in Dubai but never thought you could? Well, it’s time to strike the iron while it’s hot, according to property experts. With declining house prices, plans to extend visas up to ten years and an ever-growing list of new developments coming onto the market, the time for house hunting could not have been more ideal than what it is right now.

  • Purchasing a home is the most important financial transaction of your life. Unless you are born Warren Buffet, you will definitely need a loan to support your financial plan, in buying a home!

We at Prowin have charted out a helpful checklist to help you master the game of home loans! Here are our Top 7 Tips to strike the best Home loan Read on…

1. Get the pulse of the Market

According to Naval Vohra, CEO of Dubai brokerage Appello Real Estate, getting to grips with the workings of the UAE real estate market is obviously going to put you on a surer footing. The property market here is very different from other countries, so making sure you have a real estate agent you trust, to guide you through the process is essential. They can guide you on fees, paperwork, and rules and regulations – this will save you time, money and reduce worry as you take the plunge with a mortgage.

2. Consult a broker

A source of solid advice from is a mortgage broker as they have access to all the banks and – for a nominal fee – will give you impartial advice on the best products and compare lenders for you. Mortgage brokers also facilitate exclusive promotions from banks that you wouldn’t get if you went directly.

3. Be thorough with your Mortgage

For off-plan, developers offer payment plans where 100 percent of the purchase value is either paid pre-handover or a proportion is paid pre-handover and the balance paid after completion.

For pre-handover payment plans, the mortgage availability will depend on the type of payment plan. If the payments are due while under construction, the banks will only lend up to a maximum of 50 percent and the buyer would be required to pay the first 50 percent.

Experts also say it’s vital to understand all fees tied to your mortgage, particularly early settlement or transfer fees as well.

4. The Magic of Salary transfers

Some banks will give a slightly preferential mortgage rate if you undertake a salary transfer to them.

A salary transfer not only means your salary will be credited to the account you opened with your home loan with but also means that your employer will give an undertaking to the bank that if you were to leave employment, any end-of-service gratuity would go to the bank where the salary transfer is being made. This makes a world of difference!

5. Understand the mortgage application

Ensure when you get offers that everything is put in writing. Don’t sign any paperwork without having read and understood it properly. Professional advice is worth paying for as mistakes can be very costly. This where the DIY attitude does not pay off really well. There are certain aspects that only professionals can deal with, so let the pros do their job!

6. Keep liabilities to a minimum

A key factor in determining whether someone can afford a mortgage is their debt-to-burden ratio, calculated by the bank by adding all their existing liabilities, which should not exceed 50 percent of the monthly salary, adds Bobker. Additionally, five percent of all credit card limits is added to the tally as well because banks calculate a borrower’s affordability based on their limits and not the outstanding balance. If you have a lot of credit cards, it’s worth considering reducing them before taking out a mortgage.

7. Number Crunching- is a must!

 Before you can even look at properties, you need the money for the deposit and all the associated fees. For a property priced at up to Dh5 million, ex-pats will need a deposit of at least 25 percent and need to allow up to another eight percent for fees and charges. Land registry charges alone can be four percent of the price, although this varies by the emirate to emirate.

Finally, when it comes to buying a property the real estate agent will ask for a 10 percent deposit upon signing the memorandum of understanding (MoU), which is the contract between the seller and you. This deposit is usually held with the agent and not cashed but exchanged for a manager’s cheque on the day of transfer.

Phew! That was a lot of advice.We hope our Top 7 Tips to strike the best Home loan may have helped you answering your questions, Time to buckle up and get that home for yourself in plush Dubai! We hope that we could help. Contact Us to Know more or Let us know in the cooment box.

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