To determine your mortgage affordability, banks typically consider around 50% of your monthly income. From this amount, they subtract any other credit commitments you have, such as car loans, personal loans, and approximately 5% of your credit card limits. This calculation helps determine the maximum amount you can afford for a mortgage. In addition, banks conduct a stress test by applying a stress rate of interest, which can range from 3.5% to 8%, depending on the bank. The purpose of this stress test is to ensure that you would still be able to afford your mortgage repayments if interest rates were to increase to the test level.

Yes, it is possible to acquire an insurance policy that covers mortgage repayments in the event of accidents, sickness, or unemployment, including redundancy. However, this type of policy is not typically provided by the bank when you take out your mortgage. Instead, you would need to consult with an insurance advisor to arrange this specific type of coverage. If you're interested in such a policy, we can connect you with insurance advisors. Please note that this insurance is separate from the life insurance required to obtain a mortgage in the UAE.

Yes, you can jointly buy a property with your spouse, even if one of the applicants is not employed. As long as the applicant can demonstrate the ability to repay the home loan, both spouses can be joint applicants on the property.

Certainly! Banks have different preferences when it comes to employed and self-employed applications. If you are self-employed, there are banks that look favorably on these types of applicants, and we have experience working with self-employed clients and can guide you through the process.

Yes, life insurance is mandatory for any mortgage in the UAE. In most cases, the bank providing the funds for your property purchase will require you to take their in-house life insurance policy. However, we have exclusive deals with certain banks that allow us to assign an external life insurance policy, which can save you approximately 50% compared to the bank's in-house life insurance policy.

Flat rate and reducing rate of interest are two methods used to calculate interest on a mortgage.A flat rate of interest remains constant throughout the loan duration, as it is calculated against the original amount borrowed (principal).On the other hand, a reducing rate of interest takes into account the repayments made, calculating interest against the remaining loan amount or outstanding balance, rather than the original principal amount. Sometimes, a flat rate of interest may be advertised at a lower, more appealing rate compared to its equivalent reducing rate. When taking out a mortgage, it is important to clarify with the bank or your mortgage broker whether a flat or reducing rate has been applied.

Banks in the UAE ask for security cheques as a precautionary measure in case the borrower fails to meet the mortgage repayments. If this occurs, the bank can present the cheque, and if it bounces, they can initiate a legal case to repossess the property and recover the outstanding debt. This practice is similar to other countries where banks include clauses in their contracts allowing them to repossess the property if the client defaults on the mortgage.

A security cheque is a form of guarantee that banks in the UAE require when providing any type of credit facility, including credit cards, personal loans, car loans, or mortgages. The bank asks you to provide an undated cheque that covers the full credit amount as a minimum.

If your employer provides a housing allowance, it can be taken into account when applying for a mortgage. For example, if your contract or salary certificate states that you will receive a housing allowance upon leaving the company-provided accommodation, that allowance can be factored into your mortgage affordability calculation. You will still need to meet the necessary down payment requirements, but the allowance can contribute to your affordability, potentially allowing you to borrow a higher amount in some cases.

Yes, bonus income can be considered when applying for a mortgage. If the bonus is guaranteed and written into your contract or salary certificate, it is more likely to be accepted. However, even discretionary bonuses can also be taken into account by some lenders.

NOC stands for No Objection Certificate. It is a legal document issued by an organization or individual stating that there are no objections to the points mentioned in the document. When purchasing property in the UAE, an NOC is typically required from the developer to confirm clear title on the property and ensure all service charges and utilities have been paid. The NOC demonstrates that the developer has no objections to another person buying the property.

A title deed is a document registered at the Land Department that confirms ownership of a plot of land. If you purchased the property with a mortgage, your name will be included on the deed as the owner. The original title deed is held by the bank as security until the mortgage has been fully repaid.

MOU stands for Memorandum of Understanding, which is an agreement created by the real estate agent and signed by you and the seller. It outlines the timescales, terms, and conditions of the property purchase. Before you sign the MOU, we will review it on your behalf to ensure it aligns with your interests and requirements.

When purchasing a property in the UAE, in addition to the cash deposit or down payment, there are certain fees that you need to consider. These fees may vary slightly depending on the emirate you are in, such as Dubai or Abu Dhabi. Here is a breakdown of the general fees: * Land Department Fee: 4%* of the purchase price plus AED 580 (Abu Dhabi 1%-2%) * Agent Fee: 2%* of the purchase price * Mortgage Registration Fee: 0.25%* of the mortgage borrowed plus AED 290 * Bank Arrangement Fee: 0 to 1.5%* of the loan amount * Trustee Fee: AED 4,000* * Valuation Fee: AED 2,500 to AED 3,000* * (*plus VAT) It is possible to incorporate some of these fees into the mortgage, depending on the specific terms and conditions provided by the banks.

Using a mortgage broker offers several benefits. As independent advisors, we provide unbiased expert advice to help you find the best mortgage product for your situation. We discuss all available options with you and offer our opinion on the most suitable one, empowering you to make an informed decision. Our mortgage consultants guide you through the property purchasing process in the UAE, making the mortgage application process easier. Additionally, we have access to exclusive mortgage products that are not available when dealing with banks directly.

A mortgage broker, also known as a mortgage consultant, is an independent advisor who can arrange a loan between you and a bank to finance your property purchase.

Freehold property means that you purchase the property in full, whether using a mortgage or paying in cash. In this case, you own both the property and the land it sits on. Leasehold property, on the other hand, involves purchasing the rights to the property for a limited period, typically around 99 years. While leasehold property is not common in Dubai and the UAE, there are a few areas, such as Silicon Oasis and Green Community, where you can find leasehold properties.

Yes, land financing is available to assist with the purchase of a plot of land and the subsequent construction on that land.

You can get a mortgage for all types of properties, including freehold, leasehold, gifted properties, or land-gifted properties.