Personal finances

Mortgage in the UAE

What about Mortgage in the UAE? The UAE market of mortgage, equity release, letters of credit, credit cards, auto loans, and other financing options for both individuals and businesses is highly developed. However, some important nuances must be considered.
The most common type of financing in the UAE, particularly in Dubai, is mortgages. The procedure is complicated since all banks have their own unique requirements and metrics for assessing and analysing clients due to the significant differences between the financial and banking system in the UAE as a whole and the European, Russian and American systems.

People lacking experience and knowledge of local specific banking regulations and requirements for the applicant or their company, often get rejected. After all, the client simply may not have the right income level to mortgage an apartment or a villa in Dubai.

 

The same applies to obtaining a loan secured by existing property.

 

The challenge is not just having the bank assess it fairly against the market and grant the maximum possible loan, with the loan amount varying from 50% to 70% of the appraised property value, but also the fact that very often clients buy their property on income earned outside the UAE and continue to receive it there, making a loan virtually impossible to obtain.

 

In such and many other cases, a mortgage broker is the best option, simplifying the process and saving valuable time.

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