Navigating the home-buying process in the UAE can be quite daunting, especially for first-time buyers. One of the key considerations is understanding the required deposit for securing a mortgage loan. To make it easier for you, we'll break it down into simpler terms as a friend would.
In the UAE, the Central Bank stipulates that UAE nationals can borrow up to 85% of the property value if it's under AED 5 million, which means they must contribute a minimum deposit of 15%. For properties above AED 5 million, the lending ratio drops to 75%, hence a deposit of 25% is required.
Expatriates have slightly different conditions. They can borrow up to 80% of the property value if it's under AED 5 million, which equates to a required deposit of 20%. For properties over AED 5 million, they can borrow 70%, implying a deposit of 30%.
Please note that these are the minimum deposit requirements; you might decide to make a larger deposit to reduce the mortgage loan amount, which in turn would lower your monthly repayments.
Engaging with a mortgage broker in UAE can make this journey smoother. A broker or a mortgage agent can explain the implications of different deposit sizes and guide you through the nuances of the mortgage application process.
Mortgage specialists have the expertise and experience to provide valuable advice about various mortgage products available in the UAE. They can assist in selecting the right product based on your financial profile and long-term goals. Furthermore, they can explain the additional costs involved in securing a mortgage, such as bank fees, valuation fees, and registration fees.
Using an online mortgage calculator in UAE can also help in understanding how the deposit size impacts the monthly repayments and the total cost of the mortgage over its term. It's an invaluable tool that provides a snapshot of what you can afford and how different deposit sizes can affect your loan.
The application for a mortgage in UAE also requires the submission of certain documents to prove your income, residency, and identity. These typically include salary slips, bank statements, employment contracts, passports, and visas. It's wise to have these documents ready in advance to expedite your mortgage application process.
Finally, to make this journey more manageable, consider using Holo, a revolutionary digital mortgage platform specific to the UAE market. Holo simplifies the mortgage process by offering a user-friendly online mortgage calculator, expert advice from seasoned mortgage professionals, and a hassle-free application process for a mortgage loan. With Holo, navigating the intricacies of securing a mortgage becomes less complicated and more accessible.
In conclusion, understanding the deposit required for securing a mortgage in the UAE is crucial. It requires careful planning, informed decisions, and sometimes, expert advice. With the right guidance and digital tools like Holo, you'll be well-equipped to embark on your homeownership journey in the UAE.