Dubai is a place where most people around the world want to spend their life if they are willing for a luxurious life. Buying a home may cost you more than your savings, you can consider a home loan to fulfill your dream to own your home. Home Loan is the specific amount of money borrowed from a bank or financial institution for buying a home or property. The bank or financial institute will charge a certain percentage of interest on the borrowed amount. Generally home loan is secured by the home itself or property as collateral.
Basically, there are two types of home loans, variable rate home loan and fixed rate home loan. The interest rate on variable rate home loans can fluctuate any time during the loan term whereas it remains the same throughout the loan term in fixed rate home loans. U.A.E. nationals and non-nationals or expats can apply for home loans in Dubai whoever can meet the eligibility criterias set by Bank or financial institute.
Step by Step Process for Home Loans in Dubai
- Find how much you can borrow depending on your income.
- Decide the bank or financial institute to apply or select the home loan broker. Check the rates and fees for home loans before deciding the bank or broker.
- Choose a right mortgage that meets your needs. Find local lawyers to help through the process.
- Prepare for the pre-approval from the bank and fetch a Mortgage offer in principle.
- Find the property that fits the borrower’s budget and finalize the price of the property with the seller.
- Pay the deposit for confirming the purchase and schedule the date of completion.
- Contact the bank and ask to fund the seller.
Major Criteria for Home Loans in Dubai
- Must be U.A.E. nationals or expats who spent 6 months to a year in Dubai.
- Self-employed borrowers should be running the business for at least 2 years.
- For employed borrowers, employment period in U.A.E. must be a minimum of 6 months.
- Should have a good credit history.
Documents Required for Home Loans in Dubai
- Personal identification copy (Emirates ID for U.A.E. Nationals and Passport for expats)
- Residence proof in Dubai, and current address proof (for expats)
- Recent financial documents including bank statements, salary or wages proof, trade license (for self-employed), etc.
- Other supporting documents
Buying a home in Dubai may require a lot of research and expert’s consultation. Applying for a home loan can require a number of processes to go through wisely. Comparing the home loan offers from a couple of banks can cost you less, letting you get the best rates and lower fees available in the market. You can directly visit the website or contact bank or check the comparison site to hunt the best home loan in Dubai. It’s not a very complicated process to apply home loans in Dubai for expats as assumed by a lot of people.