You want to buy a new house with your spouse, and you’ll need a mortgage loan to do so. Is it preferable for you and your spouse to have a combined mortgage? Are there any financial advantages to doing this? We’ll look at some of the justifications for adding your spouse to a Dubai mortgage in this article.
Does my spouse and I have the ability to purchase real estate together?
The fast response is “yes”! For a combined mortgage, either a husband and wife or blood relations may qualify.
Each owner of a shared mortgage will be included on the deeds of the property and will share responsibility for paying back the debt.
The percentage ownership each investor has in the property can be specified when adding a partner to your mortgage, and this information will appear on the title document that the Land Department issues after the transfer is complete. The majority of married couples will split the percentage equally.
What are the advantages?
The biggest benefit of having a spouse on the mortgage is that it increases your purchasing power compared to applying alone. When determining how much you can pay, lenders will evaluate the combined family income of you and your spouse. A similar income for you and your spouse might potentially treble your affordability, allowing you to purchase a larger property.
What information will my spouse need?
In the UAE, a co-applicant must provide the same biographical and financial information as the primary applicant. This will contain information such as your identification documents, bank statements, proof of income, and your employer, among other things.
However, if your spouse does not have a job, they may not be required to show proof of income. The primary applicant’s ability to establish their ability to sustain mortgage payments over the long term on their income alone is what matters most.
How about keeping my spouse off the mortgage?
The majority of this post has been devoted to discussing adding your spouse to the mortgage. However, there might be good arguments to keep them out as well:
Separate finances – Are you using funds from an inheritance or money you had saved up before getting married to purchase the home? If you would prefer to keep your finances separate, keeping your spouse off the title is a possibility.
Estate planning – If you own the property, you can leave it to whoever you please. This might make sense if you have children from a previous marriage.
Protecting your assets – Keep your spouse off the mortgage and title documents to protect your house if they have a bad credit history or a history of defaulting on loans.
