Ready Dubai Real Estate properties come with some innate benefits.

The best part is that you know what you are paying while minimizing all the associated risks that come with making investments in the Dubai Real Estate Sector.

Buying a new home in Dubai will open up an exciting chapter in your life. But it can soon cause you to burn out and put you into financial stress if you haven’t prepared for all the costs ahead.

You can see what were the hot zones for buying real estate in Dubai 2018 in this article: Dubai 2018 Market Overview

Before buying a ready property in Dubai Real Estate, you should be aware of the associated costs of owning a home. You should also figure out the procedures through which you can acquire your home finance.  

Home Loans & Mortgages for First Time Buyers:

Buying your first property is a big accomplishment but this sense of fulfillment comes with an attached liability of home loans or mortgage.

It is important that you find out your eligibility for a loan or whether you have any mortgage constraints. Some loans may seem enticing but consider a few conditions before you gulp down any of their packages.

You should calculate the maximum amount that the bank is willing to provide you for your property and also the highest interest rate to value ratio.

What documents are required?

The bank will ask for certain documents from you to certify your identification, income, and other issues.  

The papers needed for identification is the same for all UAE residents which include:

• Emirates ID copy.
• Valid Visa with Valid Residence

 If you are a salaried Individual you will need:

• Latest salary certificate
• Recent pay slips
• Previous employment proof
• Your bank statement for the past 6 months

If you are self-employed you will need:

• A financial audit of the past two years
• MOA (Memorandum of Association) needed
• Latest 6 months back transfer
• Latest 2 years audited financial

Calculate your Mortgage Interest rates:

Most banks in Dubai offers two types of interest rates on mortgages: Fixed rate and variable rate.

The variable rate changes with the changing market rates.

The fixed rate on your mortgage is set for a certain number of years.

It is recommended to go with the variable rates and not the lowest fixed rate offered for a fixed period of time.

Know your Down Payments:

When you are buying a property in Dubai, it is very naive to expect no down payment mortgage facilities to be given to the buyers as the down payment regulations are monitored under the UAE mortgage law.

When you purchase your first property in the UAE you will be required to pay 25% down payment on the value of the property.

You can choose to make a high down payment for a lower loan to value to gain practical benefits.

Know the Transaction fees:

When you purchase a property in Dubai you will have to pay some transaction fees including 4 % of Property Registration Fee to DLD, 0.1% Mortgage Processing Fee, 0.25 % Mortgage Registration, just to name a few.

Get an Expert Advice:

Getting a bank to finance your ready property is a long term commitment. You should research well before taking any steps because home loans and Mortgages have both their pros and cons.

Therefore, it is highly recommended that you consult an expert mortgage consultant in Dubai to get the best advice.

I would highly recommend using Mortgage Finder services if you are looking to buy a property via mortgage