{"id":620,"date":"2017-04-18T14:16:00","date_gmt":"2017-04-18T14:16:00","guid":{"rendered":"http:\/\/139.59.38.172:8081\/?p=620"},"modified":"2019-11-04T09:16:58","modified_gmt":"2019-11-04T09:16:58","slug":"need-know-applying-home-loan-uae","status":"publish","type":"post","link":"https:\/\/www.mymoneysouq.com\/financial-blog\/need-know-applying-home-loan-uae\/","title":{"rendered":"What you need to know before applying for home loan in UAE"},"content":{"rendered":"<h2><b>Things you need to know before applying for home loan in UAE<\/b><\/h2>\n<p>Buying a property\/house always make people careless, partly due to excitement or partially, ignorance. One should never rush to get a loan in a hurry. It is advisable to be wise during such situation and take some time to go through the fine print and, go shopping for various banks. <a href=\"https:\/\/www.mymoneysouq.com\/loans\/compare-home-loans-uae\" target=\"_blank\" rel=\"noopener noreferrer\">Home loans<\/a> can be trickier than they seem to be. There are a few basic things you need to know and understand, regardless of you being a UAE resident or expat. It is best to be aware of all such regulations and policies before taking such a long term decision.<\/p>\n<p>Below listed are few basic things you need to be aware of, despite your residential status:<\/p>\n<h3><b>Getting Pre-approval:<\/b><\/h3>\n<p>It is necessary that you get a mortgage pre-approval to determine your budget beforehand. It is required for the buyer to pay a certain amount while signing the sales agreement. Hence a pre-approval is advised for ease of the process before you lay your eyes on your dream house.<\/p>\n<h3><b>Fees involved:<\/b><\/h3>\n<p>Every loan has their separate fees attached, be it a car loan, <a href=\"https:\/\/www.mymoneysouq.com\/loans\/compare-personal-loans-uae\" target=\"_blank\" rel=\"noopener noreferrer\">personal loan<\/a> or any other finance. Similarly, home loans also come with some fees attached. Home loans in the UAE usually include fees such as application fee, arrangement fee, and a property valuation fee. And also it is necessary to make sure that you are aware of the administration charges being charged yearly or monthly.<\/p>\n<h3><b>Interest rates:<\/b><\/h3>\n<p>It differs from <a href=\"https:\/\/www.mymoneysouq.com\/loans\/emirates-nbd-home-loan-in-uae\" target=\"_blank\" rel=\"noopener noreferrer\">bank<\/a> to bank. There are primarily two types of interest rate<\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Fixed interest rate<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Variable interest rate<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The fixed rate is fixed for a definite number of years whereas the variable rate changes based on the market. The calculation of the rate also differs, the flat rate method charges on the principal amount whereas the reducing rate is calculated on the outstanding amount.<\/span><\/p>\n<p><strong>Calculate your mortgage using <a href=\"https:\/\/www.mymoneysouq.com\/calculators\/mortgage-loan-calculator\" target=\"_blank\" rel=\"noopener noreferrer\">Mortgage Calculator Dubai<\/a><\/strong><\/p>\n<h3><b>An increase in rates:<\/b><\/h3>\n<p>Large loans with longer tenure get affected severely by the changes\/hike in rates. Hence one should try to keep as minimum tenure and amount as possible, also be in constant contact with the bank regarding the current rates and possible future changes and how will they be levied.<\/p>\n<h3><b>Flexibility:<\/b><\/h3>\n<p>Financial markets are volatile. Nothing is certain about the future. Hence it is advisable that you compare and do your due research before finalizing your bank. Instead of going for cheaper interest rates, one should focus more on banks which provide flexibility, such as payment holiday, low early repayment fees etc.<\/p>\n<h3><b>Eligibility criteria:<\/b><\/h3>\n<p>The eligibility criteria differ from bank to bank, but few basic ones that every bank would check for are<\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Minimum salary<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Minimum length of service <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Whether or not you work for a company listed with the bank.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Age<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.mymoneysouq.com\/financial-blog\/credit-scoring-and-where-it-is-headed\/\" target=\"_blank\" rel=\"noopener noreferrer\">Credit score<\/a> (in some banks)<\/span><\/li>\n<\/ul>\n<p>As far as expatriates are concerned, the following are few essential points that need to be kept in mind before going for a <a href=\"https:\/\/www.mymoneysouq.com\/loans\/rakbank-home-loan-in-uae\" target=\"_blank\" rel=\"noopener noreferrer\">home loan<\/a><\/p>\n<p>Make sure you\u2019re looking for property in the freehold zone only, examples of few famous freehold areas are<\/p>\n<h5><span style=\"font-weight: 400;\"><strong>In Dubai<\/strong>: Palm Jumeirah Islands, \u00a0Downtown Dubai, International City, Dubai Marina, Dubai sports city.<\/span><\/h5>\n<h5><span style=\"font-weight: 400;\"><strong>In Abu Dhabi<\/strong>: Al Manara, Golf Gardens, Mangrove Village, Al Manara, Al Reef, Raha Beach Area, Al Bandar, Al Zeina, Al Reem Island etc.<\/span><\/h5>\n<h2><strong>Home Loan for Expats:<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Documents required for expats to avail mortgage are, list may vary depending on the bank and situation<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Passport and copies<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Proof of residence<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Proof of address<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Salary certificates or evidence of regular income<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Bank account statements for three to six months<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A land registration fee of around 1-2% for new building developments and also other fees such as maintenance fee, legal fee, estate agent fee or developer fee.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A right loan decision taken after due diligence will lead to owning an asset in terms of both property and happiness. Hence make sure you do your homework well before applying for one. Remember, the right choices earlier will lead to growth in assets and a reduction in liabilities.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Things you need to know before applying for home loan in UAE Buying a property\/house always make people careless, partly due to excitement or partially, ignorance. One should never rush to get a loan in a hurry. It is advisable to be wise during such situation and take some time to go through the fine [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":623,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-620","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What you need to know before applying for home loan in UAE - MyMoneySouq Financial Blog<\/title>\n<meta name=\"description\" content=\"Home loans can be trickier than they seem to be. 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