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Home Loan Mythbusters
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Home Loan Mythbusters: Dispelling Common Misconceptions in UAE Market

Holo Blog

The UAE's real estate market is as dynamic as it is diverse, offering a plethora of opportunities for both nationals and expatriates. However, the complexity of the market has given rise to numerous myths surrounding home loans, often leaving potential buyers bewildered. This article aims to dispel these common misconceptions with the help of mortgage specialists in UAE, ensuring that prospective homeowners are well-informed and confident in their journey towards owning a property.

Myth 1: High Down Payments Are Mandatory for Everyone

One of the most pervasive myths is that securing a home loan in the UAE invariably requires a prohibitively high down payment. While it's true that regulations stipulate a minimum down payment - typically 20% for expatriates and 15% for UAE nationals - lenders typically offer flexible solutions. Mortgage brokers can negotiate terms that align with your financial situation, potentially lowering the upfront costs associated with purchasing a home.

Myth 2: Only High-Income Earners Qualify for Mortgages

The belief that mortgages in the UAE are reserved exclusively for the high-income bracket is another misconception. In reality, mortgage products are available across a wide spectrum of income levels, with various options designed to accommodate different financial capabilities. An application for a mortgage in UAE is assessed on a case-by-case basis, considering factors beyond just the applicant's income, such as debt-to-income ratio and employment stability.

Myth 3: Expatriates Cannot Own Property in the UAE

This myth is rooted in a misunderstanding of the UAE's property laws. Expatriates can indeed own property in designated areas, often referred to as freehold zones. With the help of a knowledgeable mortgage broker, expatriates can navigate the process of securing a mortgage loan in UAE for properties within these zones, debunking the myth of exclusivity.

Myth 4: The Best Mortgage Deals Are Only Available Through Banks

While banks are a primary source of mortgage loans, they are not the only option. Independent mortgage brokers in the UAE have access to a wide range of mortgage products from various lenders, including non-banking financial institutions. These brokers can offer personalised advice and compare different options, ensuring you get the best deal suited to your needs.

Myth 5: Interest Rates Are Prohibitively High

The notion that mortgage interest rates in the UAE are always high is misleading. Interest rates vary depending on the lender, the type of mortgage product, and market conditions. Utilising an online mortgage calculator can provide a clearer picture of the rates available, helping dispel fears of unaffordable interest. Additionally, mortgage specialists can guide you through fixed-rate and variable-rate options to find a competitive rate.

Myth 6: The Mortgage Application Process Is Long and Complicated

While applying for a mortgage in the UAE involves several steps, including documentation and eligibility checks, the process doesn't have to be daunting. With the advent of digital banking and the services of mortgage brokers, the application process has become more streamlined and user-friendly. Clear guidance and support can make securing a mortgage far less complicated than many believe.

Myth 7: Refinancing Is Not an Option in the UAE

Refinancing a mortgage, or switching your mortgage to another lender for better terms, is indeed possible in the UAE. This option can be particularly beneficial in a fluctuating market or if your financial situation changes. Mortgage specialists can offer advice on when and how to consider refinancing, ensuring that you can always seek better terms during the tenure of your loan.


The UAE's mortgage market, while complex, is structured to accommodate a wide range of buyers - from first-time homeowners to seasoned investors. Dispelling the myths surrounding home loans is the first step toward making informed decisions. By consulting with mortgage specialists, using tools like online mortgage calculators, and exploring the services of mortgage brokers, you can navigate the market with clarity and confidence. Remember, knowledge is the key to unlocking the door to your dream home in the UAE.

Navigating the Myths with Holo

At Holo, we understand that the journey to homeownership can be laden with misconceptions. Our team of mortgage specialists and brokers is dedicated to providing you with clear, accurate information and personalised advice. From the initial mortgage application for a mortgage in the UAE to selecting the right mortgage product for you, Holo is here to guide you through every step, ensuring that the myths of the mortgage market don't hold you back from securing your ideal home.

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