Getting A Home Loan in Dubai is Now Easy

"You want to better your lifestyle, but doing that is easier said than done."

It is common for migrants living in the UAE to desire a higher standard of living. The city has everything you could possibly imagine, with all kinds of entertainment and facilities provided at your whims and fancies. However, it takes money to enjoy life here. Your salary alone may not be able to meet all your expenses, so many expats turn to home loans for extra cash flow. In case you are looking for the best Corporate debt restructuring firm, you can contact us at MoneyDila.

Buying property is often seen as an easy method to start working towards a better lifestyle. When taken out correctly, home loans are usually low-cost products that can give you access to easy funds without any added stress on your finances. According to reports, the UAE's housing market is expected to reach $160 billion within the next five years, making it a lucrative place for expats looking to buy property.

Before you do that though, there are some things you need to understand about home loans in UAE. Here's what you need to know:

Different types of home loans available in the UAE

Types of Home Loans – Banks and financial institutions offer different kinds of mortgages here. It is best if you familiarise yourself with each type and find which one meets your criteria and potential needs:

1. Conventional Home Loan: The conventional loan system has been around for decades, providing people with an alternative form of financing their homes without taking on personal debt. With this option, your lender purchases the property you want in his name and then transfers it to your own in a few years' time.
2. Islamic Home Loan: In line with Sharia laws, many banks have started offering home loans that are compliant with the principles outlined by Islam. This means that interest is prohibited, so savings from your initial payments can be used as investment capital instead.
3. Abu Dhabi Finance Home Loans: These mortgages are aimed at UAE Nationals who cannot afford to buy a home using conventional financing options. The government has launched an initiative where it covers 20 per cent of the total loan value so locals can purchase properties without putting their own money on the line. You can find the right Corporate debt restructuring firm in Dubai at MoneyDIla.

What type of property qualifies for a home loan?

Qualifying Properties – While the UAE has a wide range of properties, not all can be mortgaged. All banks and financial institutions have different guidelines when it comes to deciding what they can finance for you, but they usually follow these main rules:

The property must be located in the UAE

Owning a home is easier with a conventional mortgage because these loans are standardised. If you want to apply for one though, make sure your lender covers housing units instead of commercial or industrial building

4. Security Deposit/Guarantee Fees: Most lenders require security deposits from borrowers that they invest in safe government securities until the end of tenure. They will pre-determine a percentage of your home value and ask for that as a deposit. The interest rates on the loan will depend on this number and what type of security it is. You can either provide your own guarantee or ask for their financial assistance in covering the sum, which they may consider if you have a good track record with them.

How much can I borrow?

Credit Limits – Before signing an agreement with your lender, make sure that you go through its terms and conditions carefully to find out how big your credit limit will be. Every bank looks at factors such as job tenure, salary rate, age and experience before deciding what size of loan to give you. contact your nearest Estate planning wills consultant to help you.

5. Guarantors: Having a guarantor (a colleague, friend or family who has good credit rating) helps in getting you favourable terms when buying a home. They will have to pay the loan if you do not and an agreement with your lender states that they must meet certain conditions for this arrangement to run smoothly.

What is Home Loan Pre-Approval?

Home Loan Pre-approval – You can avoid going through a lengthy application process simply by pre-applying for a home loan. This way, you can get basic information about the type of mortgage product available from different lenders so you can compare rates easily. In addition, pre-approval means your credit score has been checked, meaning your chances of being approved are increased significantly.

How long does it take to get a home loan?

6. Documentation: Banks request different types of information from borrowers depending on the type of loan that they are applying for. You will need to present salary slips, employment contracts, address proof and other credentials if you want to apply for a conventional home financing option. On the other hand, Sharia-compliant finance requires additional documents such as Fatwas (Islamic legal opinions) about your investments.

Applying For A Home Loan – Lenders usually award approval within 15 days after receiving all your required documentation. If you can provide documents showing good credit history, this process could be even faster. For Abu Dhabi residents, processing time is between one day and two weeks depending on how quickly information can be verified. 7) Settlement Period: Once approved for a home financing option, you will be given a period of time to settle the loan and sign the agreement. This settlement period depends on when your mortgage payments are due, which means that applying for different types of loans with different lenders could change the length of time that you have to settle your debt.

If you are looking for the professional Estate planning wills consultant, you can directly get them at MoneyDIla.

What is a pre-settlement home loan?

Pre-Settlement Home Loans – Even if your purchase falls through because something unexpected happened or you changed your mind, lenders in UAE do not usually ask borrowers to repay their loans. However, this does not mean that they will waive processing fees like application fees and legal costs. These could add up to thousands of dirhams depending on how much money is involved settling the loan.

Summary

While looking for the professional Estate planning wills consultant in Dubai, MoneyDila can be your one stop destination. Here, you will get home mortgage loan at the least interest rates and according to your need and requirements.

MoneyDila is one of the best private lenders that will help you get instant approval for your home loan Dubai.