Commercial Mortgage in Dubai-UAE
Our excellent mortgage consultants in Dubai will help you to secure the best mortgage deals in the UAE whether you’re a first time buyer, re-mortgaging your home or constructing your own villa. We will help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest mortgage advices.
Commercial Mortgages In Dubai-UAE
A commercial mortgage in Dubai-UAE is one that is used to fund the purchase of a non-residential property. These properties can be of any type that can be used for a commercial purpose, such as warehouses, offices, factory land, shops, and so on. These loans give businesses the ability to acquire the necessary big assets.
Commercial mortgage loans are extremely well-liked by aspiring business owners as well as established and developing companies. A commercial loan could be the solution for someone seeking money for a location of business.
The United Arab Emirates, and more specifically Dubai, is a significant commercial hub and one of the world’s corporate hubs. Daily new businesses are established around the nation, and many of those businesses go on to reach great success.
Due to its diversified population, the UAE is a great market for a wide range of goods and services and offers a wealth of business prospects. You will struggle to find a country with the diversity and opportunity that the UAE has to offer, whether your interests are in fashion, food, consulting, IT, or pretty much anything else.
The simplicity with which commercial loans can be obtained in the UAE is a big advantage for existing and potential enterprises. These loans have very low eligibility restrictions but huge rewards.
Advantages of Commercial Mortgages in Dubai
Commercial mortgages in Dubai are loans that help pay for a large part of the cost when businesses buy commercial real estate or other properties.
Such loans enable businesses to buy commercial properties that they otherwise might not have been able to.
Even if a business owner can afford to buy the commercial property they want, commercial mortgage loans can help them keep that money available for future use.
A commercial mortgage loan in Dubai has several benefits, depending on things like business potential, the industry, and circumstances. A commercial loan can, however, assist every business in some way, and that much is certain.
Commercial Mortgages for a startup - Advantages
The biggest worry for any aspiring entrepreneur is probably money. There are obviously a lot of things to invest in, such as personnel, merchandise, and equipment. The cost of leasing or purchasing a workspace typically consumes the highest sum of money.
A new firm can be sure to acquire fixed assets and repay the loan amount in accordance with a structured plan thanks to a commercial mortgage loan in Dubai. With this strategy, organizations can steadily raise their equity while still saving money and maintaining liquidity for other profitable endeavors.
Use commercial mortgage loans for your commercial property to keep your money preserved.
Commercial Mortgages for an established business
In comparison to startups, an established business is more likely to have stronger financial resources. Despite this, when established firms want to grow, funneling big sums of money can be challenging and prevent the company from running operations efficiently.
Established companies can now use commercial loans to improve or grow their operations. Long-term stability is ensured by a solid business since it is more likely to receive loans with better interest rates and conditions. As a result, smart and seasoned business owners frequently turn to commercial loans in order to expand their enterprises.
Commercial Mortgage in UAE
The UAE is a fantastic location for business establishment and expansion, as mentioned before. The country’s encouraging financial solutions on offer are one of the main factors making it so appealing to business owners of all kinds. The interest rates on commercial mortgage loans are typically lower than those on other business loans.
Why is there a correlation between business mortgage loans and reduced interest rates? The main reason for this is because lenders who give this kind of loan are more secure and confident in their lending because they may use the property as collateral. As a result, a mortgage loan’s terms and circumstances are more forgiving overall.
Using a Commercial Loan in Dubai-UAE
Purchasing commercial real estate or property that will bring in income is possible with a business loan. This implies that enterprises from any sector or field can profit from these loans. Mortgage loans are utilized for a variety of commercial and industrial buildings, including shops, hotels, offices, warehouses, manufacturing lands, showrooms, and many others.
Types of Commercial Mortgages in Dubai
Owner-occupied and commercial investment mortgages are the two main forms of commercial loans. When a businessperson intends to use the property to make money through a self-owned enterprise, they use the owner-occupied kind of mortgage. Therefore, any loan taken out to buy a property for commercial purposes falls under the category of owner-occupied commercial loans.
Conversely, commercial investment mortgages are employed when the applicants want to rent out their property, meaning that the only profit will come from rental returns.
The predicted revenue will be taken into account when either form of loan is approved because it is crucial that the property generate enough income to repay the loan in full.
LTV (Loan-to-Value) and loan terms
A commercial mortgage loan has different numbers than a conventional business loan or a home loan. For instance, the UAE permits a maximum LTV ratio of 80%; hence, you can become the owner of the property and use it for your business needs by making a down payment equal to 20% of the property’s value. The maximum term for a commercial mortgage is 15 years.
Rates for commercial mortgages:
It’s crucial to keep in mind that a commercial mortgage loan often does not have a fixed interest rate.
Additionally, the rates for a commercial mortgage will often be lower than the rates for a company loan but higher than the rates for a residential mortgage. The main deciding element is the level of risk that the lender is assuming by accepting a specific loan. You can determine the actual costs of your home loans with the aid of mortgage professionals. Alternately, you can use our Mortgage Calculator to estimate the total markup and monthly payments you will need to make for a certain property.
Commercial Mortgage – Application Process
As usual, the first step will be to gather and submit the necessary paperwork to the financial institution that will be disbursing the loan. The required documents are listed below:
Identification:
Every UAE national will be required to submit their Emirates Id Copy. Expats, on the other hand, will need to provide valid visa and passport copies.
Documents for a salaried applicant:
A salaried applicant will be required to submit earning proof and other employment-related documentation, which could include recent salary slips, salary certificates, employment proof (for the last three years), and bank statements (for the last six months).
Documents for a self-employed applicant:
Every self-employed applicant will need to provide their MOA, a copy of the trading license, bank statements (for the last six months), and audited financial reports (for the last two years).
We work for you, Not the banks!
Capital Zone Mortgage was established to assist buyers in their quest for mortgages. Our mortgage brokers offer knowledgeable advice when you’re looking to purchase a property.
Our mortgage team can advise you on the most suitable bank for your needs, having developed partnerships with several banks over the years.
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Calculate how much you can afford to borrow with our easy-to-use mortgage calculator
- We’ll evaluate all available products in the market and short list the most suitable options for you
- We’ll coordinate all necessary documents, secure your mortgage pre-approval, and complete your bank application forms.
- We’ll handle all bank interactions, and co-coordinate the property valuation and mandatory life insurance.
- Once the mortgage is secured, we’ll coordinate the property transfer. We even provide advice after settlement.
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How to get Approved?
Wondering how it all works? Here are few criteria we take into action.
- Down Payment - Your down payment is your first stake in your new home
- Credit Score - The better your score, the more likely you are to get a great interest rate
- Employment History - A steady work history tells us how you well you will be able to meet your mortgage
- Debt Burden Ratio - Ratio helps us determine how much mortgage you can afford
Down Payment
Employment History
Credit Score
Debt Burden Ratio
Our Banking Partners
We work with more than 15 different lenders to get you the best mortgage in the UAE!
Our Mortgage Services
We will be glad to provide you with the most optimal solution either for your mortgage or money loans matters.
New Purchase
Whether it's your first or second mortgage, we are here to help you to get the best possible rates and conditions and guide you through the whole process of getting the new property.
Equity Release
Releasing equity from your property can be a good idea to renovate your property or fund another purchase. You can avail up to 70%-80% loan to value of your existing property.
Refinance
Refinancing your home is simply getting a better mortgage deal to replace the original mortgage. Refinancing is done to allow a borrower get a better rate to save on interest.
Non-Resident Mortgage
Non resident can get up to 75% loan to value (LTV) for purchasing a property in the UAE.
Loans Against Rental Income
The rental income can be used along with other income, such as your salary to increase your borrowing power or else mortgage out of the rental income purely are also available.
Under Construction & Off Plan
Arrange up to 50% loan to value (LTV) for the off plan or under construction property. The LTV can be increased after the handover.
Commercial & Building Finance
We also assist our clients in planning and arranging finance for residential as well as commercial developments.
Construction & Land Financing
When you own a piece of land, you can build a space that is uniquely yours, We help to acquire the land for you so that you can start turning your dream into reality.
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Our team of mortgage brokers can help with all of your home loan and commercial finance needs!
Frequently Asked Questions
A conventional mortgage is where your loan repayments will include paying a rate of interest to the bank, this is their profit for lending you the funds.
An Islamic mortgage differs from a conventional mortgage because under Shariah Law it is forbidden to charge interest on a loan, so in this case banks will buy the property on your behalf and rent or lease it back to you for a profit.
This depends on your occupation. Salaried candidates will usually have to endure 1 week until approval, whereas self-employed candidates may have to endure a longer period.
Yes, they can, although the conditions and possible charges will be different for non-residents.
Your credit limit is determined by your present income and liabilities. Depending on the bank, this may change.
EIBOR is the Emirates Interbank Offered Rate, which is the rate at which banks lend to each other. EIBOR rates change daily and can be checked on the Central Bank website here
The minimum down payment for a property under AED 5 million is 20% for an expat or 15% for a UAE national. The minimum down payment for a property over AED 5 million is 30% for an expat or 25% for a UAE national.
The maximum LTV is 80%, meaning that applicants will be required to pay a minimum of 20% of their chosen value of the property in the form of a deposit. Of course, the precise LTV amount can vary, since financial institutions assess an applicant’s financial profile before offering an LTV.
Commercial mortgages adhere to simple mechanisms. The bank, after assessing a particular commercial property’s business aspect – as well as the applicant’s eligibility – will fund the property. The applicant will be required to pay off the loan money according to a pre-determined repayment plan. The bank will hold the property as collateral until the applicant has paid off the entire amount.
When you use the word ‘term’ in the context of mortgage loans, you are essentially referring to the entire loan life. In other words, the loan term is the amount of time during which you are required to return the entire loan amount to the bank that offered you the loan.
