Investing in real estate in Dubai isn’t just about enjoying impressive returns on investment; it also opens doors to unique financial opportunities that many overlook. One such opportunity is taking a loan against your property in Dubai. This strategy allows you to leverage your existing real estate to access substantial funds, which can be used for further property investments or personal needs. 

Surprisingly, many people miss out on this potential because they aren’t aware of how it works. If you’re curious about how to unlock the value of your Dubai property and benefit from this financial tool, this blog will explain everything you need to know. 

Loan Against Property: Significance And Features

A loan against property in the UAE allows homeowners to unlock the value of their real estate assets. By using your home or another property as collateral, you can access substantial funds. The lender assesses the market value of your property to determine the loan amount, typically a percentage of the property’s value, which varies between banks. 

If you default on the loan, the lender can auction your property. Therefore, it’s crucial to carefully review loan terms. The property must be debt-free and can include your home, a leased house, or land you own.

Key features

• Interest Rates: Both variable and fixed interest rate options are available.
• Property Types: Financing is available for freehold, leasehold, and private villas with title deeds.
• Flexible Repayment Plans: Customisable repayment plans to suit your financial situation.
• Additional Benefits: Options for early repayment without penalties and access to dedicated mortgage advisors for personalized assistance.

Application Process And Eligibility

Acquiring equity release in Dubai is a straightforward process. Start by contacting your mortgage advisor to discuss available products that best suit your requirements. You’ll need to submit the necessary documents and details about the property. The lender will evaluate the property’s market value and assess your ability to repay the loan to determine the loan amount and terms. Upon approval, the loan amount will be released, and your property will be held as collateral.

Eligibility Criteria

• UAE nationals must have a minimum monthly income of AED 10,000.
• Expatriates must have a minimum monthly income of AED 12,000.
• You can get equity on a property when you refinance an existing loan, it would be calculated on the portion of the home that you have already paid for.

What Are The Benefits Of Taking a Loan Against Property in Dubai?

1. High Loan Amounts: You can borrow up to 60% of your property’s value. This high loan-to-value ratio enables you to leverage a significant portion of your property’s equity, providing substantial funds for various needs.
2. Flexible Repayment Terms: Borrowers can choose repayment terms of up to 25 years. This flexibility allows for manageable monthly payments, making it easier to plan and budget for the long term.
3. No Salary Transfer Requirement: Unlike many personal loans, there is no need to transfer your salary to the lending bank. This benefit offers greater freedom and convenience, as borrowers can maintain their existing banking relationships. However, lower loan amounts might require a salary transfer.

4. Early Settlement Flexibility: Borrowers can settle their loans early with a fee of only 1% of the unpaid finance amount, capped at AED 10,000. This equity release aspect offers the advantage of paying off the loan ahead of schedule without incurring significant penalties.

Unlock 70% Loan Against Your Property With My Mortgage

Whether you need funds for further investments, personal expenses, or business ventures, My Mortgage offers financial solutions like equity release for loans against your property. Our tailor-made solutions cater to both handover and near handover payments, ensuring that your specific needs are met. 

With access to the best financial institutions in the UAE, we guarantee the most competitive interest rates. Our dedicated team of specialists is renowned for their personal touch, prioritizing your needs to provide you with the best possible financial advice and services.