Home equity release loans in dubai-UAE
Home equity in 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.
Equity Release Loans in Dubai-UAE
When you borrow a large sum of money from a lender and pledge your property as collateral, the process is known as equity release in dubai, also known as a loan against property in Dubai. It’s a fantastic way to free the money that’s been locked up in your house, and foreigners from all around the city can use this service.
One of the least expensive ways to borrow money is through a loan against property, which is a regular and well-liked strategy used to leverage the financial value of a home worldwide. Expats living in UAE may borrow up to 75% of the value of their homes, and once the money is disbursed, it is yours to use anyway you see fit. If you’ve thought about taking advantage of the value locked up in your property, we’ve listed the advantages of equity release for expats in Dubai below, along with all the necessary details so you can get started.
The Benefits of Equity Release in Dubai-UAE
Home equity in UAE, You can live the lifestyle you’ve always desired in Dubai with equity release because it has so many benefits. A loan against property has a number of significant advantages, including:
You Can Release Your Property’s Value Without Leaving
- Some people mistakenly believe that selling their home qualifies as a home equity release, but this is not the case. By releasing equity, you can release the money that is secured by your property. The lender is not allowed to evict you; you are free to occupy the property for as long as you like. Home Equity , home equity release You don’t even have to move out; your house can still be included in the estate you leave to your beneficiaries. When you take out a loan against property, you have a variety of options, and a lifetime mortgage will protect a percentage of your property’s future worth for your loved ones.
Cash Available Tax-Free for Any Purpose
- Once the funds have been released into your bank account, you can use the money for any purpose you require. The equity you release is also tax-free, so you don’t have to worry about losing a share of the money in tax payments.
Many people use the funds for:
- Paying off their mortgage / debts
- Home improvements
- Financial stability
- Paying for their children’s or grandchildren’s education
- Purchasing a second property in Dubai as an investment
- Cash flow for other business ventures.
Low Interest Rates for Home Equity Release in Dubai-UAE
- Equity release allows you to borrow more money at a reduced interest rate because you’re using your property as security. Other personal loan options typically come with higher interest rates, but it’s wise to check first to make sure the loan you’re getting will benefit you. With a loan against property, you also have the flexibility to decide on the tenure of your loan.
- In most cases, equity release loans in Dubai will be between 5 and 25 years. A longer loan can mean the amount of interest you have to pay back each month is less, which in turn means you put less financial pressure on yourself. However, it’s best to first go over the options with an impartial advisor before deciding on any loan option. By doing this, you can ensure that the loan you’re taking out is the appropriate one and that the length of your loan and the repayment options are well-balanced.
Am I Eligible for Equity Release?
Your Credit Score
Money lenders in Dubai will look at your credit score to assess your history of loan repayments, much like they would back in the UK. A high credit score improves your chances of securing a loan, while a low credit score can make things a touch more difficult.
Your Source of Income
Even with your property up as collateral, banks and other lenders will need to be certain that you’re financially stable enough to repay the loan as outlined in your intended agreement.
If lenders don’t think you can meet their terms, you may not reach an agreement or they may insist on making some changes. This is why you should meet with an independent advisor first to discuss the equity release options that will work well for you.
It should be mentioned that retirees, employees and the self-employed can all take out a loan against property. Lenders do not discriminate about the source of your income as long as it is stable.
Documents Required for Equity Release Loans in Dubai-UAE
The following documentation must be provided to lenders by anyone in Dubai who wishes to use equity release options:
- Title deed
- Building plan
- Registration documents
- Approval documents from relevant authorities
As an expat, you will also need to present:
- A copy of your passport
- A valid residence visa
If you are an employed individual, you may also need:
- A salary certificate
- Your latest pay slips
- Your bank statements for the last six months
Self-employed individuals could require:
- A copy of your valid trade license
- A Memorandum of Association
- Your bank statements for the last six months
- A financial audit going back at least two years