When it comes to getting a mortgage pre-approval in Dubai, there are various things to consider and issues to address. Mortgages are the most popular of them. The entire home-buying search process is built on it. Other considerations, such as family needs, location, and amenities, are important, but economics take precedence. You won’t be able to obtain the transaction you’ve been eyeing if you don’t have enough. Taking the steps towards getting your dream home is only feasible if your mortgage has been pre-approved.
What is the importance of getting a mortgage pre-approval?
The advantages of mortgage pre-approval are undeniably numerous and vital for property buyers. You will know your affordability when you begin your home search if you already have a mortgage pre-approval in place. You have a firm understanding of what costs are anticipated upfront and how much cash you will require to complete a transaction. Furthermore, you will know how much your monthly payments will be, providing you confidence when bargaining with agents and sellers. Furthermore, when the ideal home comes up, you will be in the greatest position to make an offer. You are ready to go and prevent significant delays if you contact a bank to begin the pre-approval procedure.
How is mortgage pre-approval helpful to sellers?
Pre-approval offers significant benefits for sellers as well. When a buyer presents an offer with pre-approval, the seller values the buyer’s readiness and seriousness. As a seller, you aim to achieve the highest price for your home and simplify the selling process for both you and the buyer. A buyer with pre-approved mortgage financing is the ideal client, making the transaction smoother and more efficient.
As a buyer, you avoid the heartbreak of finding your dream house only to lose it because you didn’t have a mortgage pre-approval in place when you made an offer. As a seller, you avoid delays and potentially losing the client because they’re not ready yet.
Taking out a bank loan is a major decision that often brings anxiety and stress. When you add choosing a home, selecting a location, and deciding how much to spend, you face a significant life event. Many buyers make the mistake of viewing and making an offer on a home without first securing a mortgage pre-approval. This oversight leads to delays and causes sellers to dismiss the offer, often resulting in the property being bought by another buyer.
Eligibility Criteria for Getting Mortgage in Dubai
In Dubai, both UAE nationals and Expatriates can apply for a mortgage, provided they have a stable income and a strong credit history. Some banks also use a list of approved employers to help determine mortgage eligibility.
Applicants must be at least 21 years old to qualify for a mortgage. The maximum age for the final mortgage repayment varies among banks:
70 years for UAE nationals
65 years for expatriates (up to 70 years for self-employed expatriates)
65 years for non-residents
Although the Central Bank of the UAE removed the age limit for mortgage repayments in 2019, many banks still adhere to these age restrictions.
Mortgage Down Payment for UAE Nationals
For UAE nationals, the minimum down payment is 15% for properties priced under AED 5 million. If the property costs more than AED 5 million, the down payment rises to 30% of the purchase price. For additional homes, UAE nationals must make a down payment of at least 35%.
Mortgage Down Payment for Expats
Expats need to provide a minimum down payment of 20% for their first home if its price is below AED 5 million. For properties valued over AED 5 million, the down payment must be at least 35%. When purchasing additional homes, expats must contribute a down payment of at least 40%.
Applying for a Mortgage Pre-approval
Applying for mortgage pre-approval in Dubai is simple and can be done in two main ways: through a Mortgage Broker like Capital Zone, or directly via a bank’s website or branch. The most convenient method is to contact us or use our official site, capitalzone.ae.
At Capital Zone, we compare various home loan products, find the best options, and submit applications quickly. Additionally, our in-house mortgage experts are available to help you choose the right home loan plan and boost your chances of pre-approval.
We prioritize offering tailored solutions to meet each customer’s needs. Contact us today!
