UNDERSTANDING MORTGAGES IN DUBAI
Dubai's allure as a real estate hub is undeniable, with 50-60% of property buyers being non-residents. But how does Dubai's mortgage landscape accommodate this vast international clientele? Understanding Mortgages In Dubai.
Dubai banks primarily offer two mortgage categories: one tailored for citizens of the UAE and resident expats, offering up to 85% funding on their first property and 60% for any investments that follow, and another designed for non-residents eager to tap into the real estate market and expand their investment portfolio. A notable highlight is that non-residents aren't left in the lurch; they can secure up to 60% funding of the property value based on their income from their home country.
Similar to other global markets, mortgage interest rates are primarily of 2 kinds - fixed term and variable. Fixed interest rates are set by individual banks for a specific period of time [eg: currently the lowest interest rate is 4.24% fixed for 3 years] and variable rates are a base rate set by banks + an EIBOR rate [Emirates Inter Bank Offering Rate] which is an average of the daily base rates that banks offer and is set by the Central Bank of the UAE on a daily basis, variable rates are offered at shorter fixed periods, the most common being 3 months [eg: 0.99% + 3 month EIBOR].
Let's explore these mortgage types in depth, focusing on their unique aspects and funding provisions.
Navigating Dubai's extensive mortgage landscape can seem daunting. However, arming yourself with knowledge of the varied options, assessing your unique financial situation, and seeking expert guidance can significantly simplify the process. And with the prospect of a long-term golden visa, real estate investment becomes even more enticing!
At My Mortgage, our adept consultants harness cutting-edge algorithms to sift through a range of mortgage products, ensuring you receive recommendations tailored to your needs. With a trusted mortgage advisor by your side, your Dubai property acquisition journey becomes an exhilarating and smooth experience.