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Choosing a dream home in the UAE is no big deal, considering the numerous properties on offer. But arranging a mortgage can be tiring and requires meticulous planning.
Therefore, getting a mortgage pre-approved before selecting a property is a good idea. Visit bank branches, make appointments with lenders and do a bit of research when comparing loan rates to get the best deal in town.
Since loan approvals are often time-consuming, it is advisable to select properties only after the approval has been finalised. It gives you an exact idea about the amount that can be borrowed and accordingly find a place that suits your budget. Therefore, scouting through mortgage deals from various lenders can help you locate an ideal package. The right deal, on the other hand, will depend on various factors such as the property you wish to buy, the deposit that you have to pay and the ability to arrange for monthly installments.
According to the Central Bank, individuals must not allot more than 50 percent of their income for repaying debts including mortgages and credit card bills. As a result, mortgage companies look at certain aspects such as the current income of the borrower, whether he is a contractual or a full-time employee, the loan compared to the estimated price of a chosen property and the type of loan that is being requested. Apart from these, the current savings of the borrower and other lifestyle expenses including those of the dependents will be taken into consideration before approving the loan.
If you are trying to find a mortgage that best meets your requirements, get a rough estimate by utilising an online calculator that helps assess monthly liabilities towards the loan.
Besides, talking to executives at the mortgage department of your bank can be quite helpful. Furthermore, the services of an expert advisor or mortgage broker can be hired.
So, if you are trying to invest in a property, be prepared to devote some time in comparing rates and product features before settling on a mortgage deal.
• Get advice by speaking to your bank and hiring a licenced mortgage broker
• Pay bills on time and reduce debts to increase chance of mortgage approval
• Utilise an online calculator to help assess your monthly mortgage liabilities
Once your loan is approved, you may start scouting your dream property from our listings.
Source: Shabnam Mondal, Special to Properties
The writer is a freelancer