Getting a mortgage in Dubai is easier than ever before. Not to mention the opportunity it gives for an excellent investment and luxurious lifestyle it offers. Simplified application processes and numerous mortgage options give anyone the ability to get one. This guide will help you to understand the basics so that you can find the best mortgage company in Dubai.
What is a Mortgage?
When you want to buy property but don’t have enough money, you can take out a mortgage. This is a loan that’s given by a bank or other financial institution. The amount of the loan is based on how much the property costs and your ability to pay back that loan. You use that house as collateral for it, so if you don’t pay back the money, they can take and sell your house until they get it back.
Why Get House Finance in Dubai?
Owning a property in Dubai is the investment equivalent of printing money. With their economy flourishing and people needing places to stay, you can get rich pretty easily. Plus, taking out house finance in Dubai makes it easy to own more expensive houses. After all, if you’re printing money, why not spend more?
In Dubai, there are two mortgages you can get – conventional and Islamic. Conventional mortgages work on an interest-based system. Basically, you pay back the loan amount and then some over time. The other option is Islamic. A mortgage that follows Shariah principles where profits come from sharing profits instead of charging interest.
How To Apply For a House Finance in Dubai?
Getting a mortgage in Dubai is simple. It just takes a few steps that you must follow. The first thing you have to do is pick which type of mortgage you want, either conventional or Islamic. After deciding that, start looking at all the different banks and see what kind of plans they offer.
- Every bank will have its own unique plan. So you have to compare and contrast to find out which one is the best for your situation. Go through the interest rates, terms, and conditions with a fine tooth comb because it’s important to do so.
- When you apply for a loan, there are a few things you need to get together before you drop it off. The standard stuff is the same across most places, like your passport, UAE residence visa, proof of income, bank statements, and property details. Keep in mind that some banks might need extra stuff so don’t be surprised if they ask for something different.
- After all needed papers have been gathered, you can submit your application. Dubai banks usually offer an online application service, which makes the process as convenient as possible.
- Once they have your submission, the bank will look it over and make a decision. They’ll do this by evaluating the information you provided and checking your credit score. If everything looks good and you get approved, they’ll pay out the loan amount to you.
You would be surprised at how many good deals can be found if you just look hard enough at different banks and their offers. I hope this guide helped you understand everything about mortgages in Dubai.