Dubai is one of the most vibrant and diverse cities in the world, and it’s no surprise that many people want to make it their home. However, with the high cost of living in Dubai, buying a property can be a challenging and complex process. In this post, we’ll share some tips on how to get a mortgage in Dubai and make your dream of owning a home in this exciting city a reality.
Build a good credit history
One of the most critical factors that banks and financial institutions in Dubai consider when reviewing your mortgage application is your credit score. A good credit score indicates that you’re a responsible borrower who is likely to repay the loan on time. Therefore, it’s essential to work on building a good credit history before applying for a mortgage. You can do this by paying off outstanding debts, bills, and credit card balances on time. Additionally, avoid applying for too many credit cards or loans at once, as this can negatively impact your credit score.
Save for a down payment
In Dubai, it’s standard for banks to require a down payment of at least 20% of the property’s value. Therefore, it’s essential to start saving for your down payment well in advance. Saving a considerable amount of money can be challenging, especially if you’re also paying rent or other bills. However, you can start by creating a budget and setting aside a portion of your income every month towards your down payment. You may want to consider setting up a separate savings account for this purpose and contributing to it regularly.
Research and compare lenders
There are several lenders in Dubai who offer mortgages to residents and expats. Each lender has its own set of rates, fees, and terms, so it’s important to do your research and compare different options. Look at factors such as interest rates, fees, customer service, and the lender’s reputation. You can also work with a mortgage broker, who can help you compare different lenders and find the best mortgage for your needs. It’s important to take the time to compare lenders and find the best option for you, as this can save you a considerable amount of money in the long run.
Prepare your documents
When applying for a mortgage in Dubai, you’ll need to provide a range of documents, including your passport, visa, salary certificate, bank statements, and proof of address. It’s essential to ensure that you have all the necessary documents in order and organized, so you can submit them quickly and efficiently when required. If you’re unsure about which documents you’ll need, contact your lender or mortgage broker to get a list of requirements.
In conclusion, getting a mortgage in Dubai can be a challenging and complex process, but with the right preparation and research, you can make it happen. By building a good credit history, saving for a down payment, researching and comparing lenders, and preparing your documents, you’ll be well on your way to owning a home in this vibrant and exciting city
Want to know more?
Mamtu has access to both these premium projects and is just the advisor you need in your corner. She can not only offer candid advice to help you zero in on the right home for your needs, but also be your guide every step of the way as you manoeuvre a real estate transaction.
If you’re excited to get started on your Dubai dream give Mamtu a shoutout on +971 50 728 1007 or write to her at mamtugm@gmail.com
