A mortgage is a loan from a bank that helps you finance the purchase of a property. You pay back the loan with interest over a set period, often 20-25 years.

It is the interest rate charged on the loan amount. It determines your monthly payments and the total cost of the loan.

1 Your current situation Whether you're a first-time buyer, moving to a new property or remortgaging your existing one 2 Your details Your name, address, and whether you're making a single or joint application 3 Property details Whether it's a new build, a house or an apartment 4 How much you need to borrow Usually the value of the property you're buying, minus your deposit 5 How much you earn Your salary, plus any extras like bonuses or overtime

To apply for a mortgage in the UAE, individuals typically need to provide proof of income, a valid Emirates ID, a passport copy, and bank statements. Some may also require a proof of down payment, which is usually a percentage of the property's value.

Yes, expatriates can qualify for mortgages in the UAE, but with specific requirements compared to nationals. This may include higher down payments, shorter loan terms, and thorough income verification processes.

The approval process can take 5-6 working days for pre-approval and longer for final approval, depending on the bank and your situation.

Ideally, get pre-approved for a mortgage before searching for a property. This gives you a clear picture of your budget and strengthens your negotiation position with sellers.

Compare rates and terms from different banks. Understand the associated fees and costs. Factor in your long-term financial stability and ability to make repayments. Consider additional costs like property maintenance and potential future interest rate hikes.

Sharia-compliant property financing that complies with Sharia, or Islamic law. For more information.

Several fees are involved such as: Processing fee: Charged by the bank for processing your application. Valuation fee: Covers the cost of assessing the property's value. Mortgage registration fee: Paid to the government to register the mortgage. Property insurance: Mandatory to protect the property against unforeseen events.

Interest rates vary depending on the bank, loan product, loan-to-value (LTV) ratio, and your individual credit profile. Rates typically range from 4% to 5% as of August 2024. It's recommended to compare rates from different banks before committing.

The LTV ratio is the percentage of the property's value that the bank will finance through the mortgage. In the UAE, LTV limits are set by the Central Bank: Up to 85% LTV for UAE nationals: for properties under AED 5 million; 75% for properties above. Up to 80% LTV for expatriates: for properties under AED 5 million; 70% for properties above.

Fixed rate Enjoy the security of a constant interest rate, ensuring predictable monthly payments throughout your loan term. Fixed rates are normally provided for an introductory period for several years only, typically from 1 to 5 years. After the intro period, your mortgage would be converted into the agreed variable rate. Variable rate When the market rate (EIBOR) is low, benefit from initial lower rates that may fluctuate over time based on market conditions.

It is possible to utilize your property's equity while retaining occupancy. However, most banks would have more strict requirements on this type of transactions and might charge a higher interest rate or processing fee as well.