Frequently Asked Questions
What is RERA?
The Real Estate Regulatory Agency (RERA) is the government agency for regulating the real estate sector in Dubai, the Government Land and Property Department in Dubai. It is a major agency that shapes, regulates, and licenses the real estate sector in Dubai.
What does "market value" of the property means?
Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.
What is a Down Payment?
Up-front payment from the buyer for a portion of the purchase price, which reduces the value of the loan against the property.
What is Equity?
Equity is the difference between the appraised value of the property and the total claims held against the property.
What is Loan to Value (LTV)?
LTV is the ratio of the amount of the loan outstanding to the appraised value of the residential property.
What is a property appraisal?
A property appraisal is a comprehensive assessment of the property characteristics including the determination of the collateral’s value.
What is the maximum repayment term for a Mortgage loan in UAE?
The maximum tenor for a Mortgage Loan in UAE is 25 Years. The maximum age at the time of the last installment is 70 years for UAE nationals and 65 years for Expatriates(or 70 years if self-employed).
How much is the maximum finance amount can be availed for a Mortgage loan in UAE?
The maximum finance amount that can be availed in UAE as a Mortgage loan is up to 8years annual income for UAE nationals and up to 7 years annual income for Expatriates. DBR should not exceed 50% of the total income of the borrower.
Can the costs of buying a property be incorporated into the mortgage?
Some banks in the UAE will allow adding a component of the costs of purchasing a property to the mortgage, which helps to significantly save on initial costs.
What are the costs of purchasing a property in the UAE?
Aside from the down payment, there are a number of costs and fees that are incurred before you actually buy the property:
- 2% Real Estate Broker Fee
- 4% Dubai Land Department (DLD) Transfer Fee
- 25% Mortgage Registration Fee
- AED 4,000 Property Registration Fee
- AED 2,500-AED 3,000 Property Valuation Fee
- Up to 1% Bank Mortgage Loan Establishment Fee
Who can get a mortgage in the UAE?
Foreign buyers can get a mortgage in the United Arab Emirates, but they need to meet certain criteria. A Salaried person should have completed 6 months in the current job or should be a confirmed employee with regular salary credits.
Self-employed borrowers will need to run their business for at least two years. It may also be helpful to have an established relationship with the bank, as they will be aware of your circumstances