Owning a home is a dream for many people in the UAE. However, there are several misconceptions and myths about buying a home that can make the process seem daunting. In this article, we will debunk five common myths about buying a home in the UAE.
Myth 1: To buy a home, you'll need to have a large down payment
One of the most common myths about buying a home is that you need to have a large down payment. A significant down payment can help reduce your monthly mortgage payments and lower your interest rates. In the UAE there are rules in place for the minimum down payment or deposit you will need.
As an expat you will need a deposit of 20% of the propertybs value if it is under 5,000,000 AED. Local borrowers will need a 15% down payment. If the property you wish to purchase is over 5,000,000 AED the down payment amount increases to 30% for expats, and 25% for Emiratis. However, it's worth noting that having a larger down payment can make your loan application more attractive to lenders.
Myth 2: You need to have a perfect credit score to get approved for a mortgage
Another common myth is that you need to have a perfect credit score to get approved for a mortgage. While having a good credit score is essential, it's not the only factor that lenders consider when approving a mortgage. Lenders also look at your debt-to-income ratio, employment history, and other factors. It's always a good idea to review your credit score and credit report before applying for a mortgage to ensure that there are no errors or inaccuracies that could impact your application.
Myth 3: You can't get a mortgage if you're self-employed
Many self-employed individuals believe that they won't be able to get a mortgage because they don't have a stable income or employment history. However, this isn't necessarily true. While it can be more challenging for self-employed individuals to get approved for a mortgage, it's not impossible. You may need to provide additional documentation, such as tax returns or bank statements, to prove your income and financial stability.
Myth 4: You should always choose the mortgage with the lowest interest rate
While it's essential to consider the interest rate when selecting a mortgage, it's not the only factor you should consider. Home loan interest rates in Dubai have risen across the board. Other factors, such as the loan term, fees, and repayment options, can also impact the overall cost of your mortgage. It's important to compare different mortgage products and consider the total cost over the loan term, not just the interest rate.
Myth 5: You can't buy a home if you're a non-resident of the UAE
Many non-residents believe that they can't buy a home in the UAE, but this is not true. Non-residents can purchase property in the UAE, although there are certain restrictions and requirements that they need to meet. For example, non-residents may need to obtain a special residency visa or have a local sponsor to purchase property.
In conclusion, there are several myths and misconceptions about buying a home in the UAE that can make the process seem daunting. However, by understanding these myths and working with a reputable mortgage broker, you can navigate the process with confidence. With the help of digital mortgage services and mortgage calculators, you can compare different mortgage products and find the one that best suits your needs and budget.
With the right support, buying a home in the UAE can be a smooth and rewarding experience. Webve collated all the most common mortgage loan questions on our FAQs page. Alternatively, why not explore our blog to get to grips with mortgage in depth.
If you have any questions about home loans in Dubai or are interested in applying for a mortgage, let Holo Help! Webll guide you through the process and help you find the best mortgage product for your needs. We have access to 500 mortgage products from across the UAEbs banks and unlike a typical mortgage broker in Dubai, we donbt charge you any fees.
This blog is for educational purposes, but everyone's case is unique, and local guidelines and regulations may change. Our mortgage advisors can help you with any question you may have and have the latest advice. Get in touch.