Dubai Mortgages

[snakyy21]

Hi Everyone

Just wondering what your experience been with obtaining mortgages in Dubai? Who are the good players? How much bureaucracy one has to go through? Who offers reasonable rates with less than average bureaucracy ?

I would really appreciate your help as I am looking for buying a studio or 1bdr unit this September (2008).

Cheers

[dubaizone]

Originally Posted by snakyy21

Hi Everyone

Just wondering what your experience been with obtaining mortgages in Dubai? Who are the good players? How much bureaucracy one has to go through? Who offers reasonable rates with less than average bureaucracy ?

I would really appreciate your help as I am looking for buying a studio or 1bdr unit this September (2008).

Cheers

Its pretty easy obtaining a mortgage in Dubai - most local as well as the international banks offer mortgages at competitive rates. I think currently the rate is around 7% on average. Terms are upto 25 years and 95% of the property value (depending on which bank you deal with). ofcourse there will always be a little bit of paper work, documents etc but a good bank will walk you through the process quite easily. Some of the banks that you may want to try out are - Barclays, RAK Bank, ADCB, Mashreq, HSBC, Standard Cht etc. But definitely one advise - do shop around for the best deal!

[pisandre]

Did anyone try UBL?

Thanks for ur feedback.

Pisandre

[snakyy21]

Originally Posted by dubaizone

Its pretty easy obtaining a mortgage in Dubai - most local as well as the international banks offer mortgages at competitive rates. I think currently the rate is around 7% on average. Terms are upto 25 years and 95% of the property value (depending on which bank you deal with). ofcourse there will always be a little bit of paper work, documents etc but a good bank will walk you through the process quite easily. Some of the banks that you may want to try out are - Barclays, RAK Bank, ADCB, Mashreq, HSBC, Standard Cht etc. But definitely one advise - do shop around for the best deal!

Thank you for your note. Do you happen to know any good mortgage specialists yourself ? And btw what is an Escrow account with Islamic Bank ?

A year ago I tried with NBAD but it was so frustrating. I think Barclays should be easier. I am just wondering.. if it is so easy to obtain mortgage in Dubai then how come everyone on this forum talks about the importance of payment plans ? Are those people mostly ineligible for obtaining of a mortgages or they simply got many properties so that now they have to invest on their own (due to high service/debt ratio)?

[Roshan]

Originally Posted by snakyy21

Hi Everyone

Just wondering what your experience been with obtaining mortgages in Dubai? Who are the good players? How much bureaucracy one has to go through? Who offers reasonable rates with less than average bureaucracy ?

I would really appreciate your help as I am looking for buying a studio or 1bdr unit this September (2008).

Cheers

Mortgages in Dubai are not the same as in the U.K or India. In India you can walk into any bank , get the property hypothecated to the bank, move in and start paying your EMI's. I presume, it's the same in the UK.

In Dubai you can obtain mortgage only from the banks / institutions who have an agreement with that particular developer, otherwise they will not entertain you.

Buy before the Cityscape comes in. Now, summer is the good time to buy as the markets are low and many people want out and cash in on their investments. Prices go up during cityscape as the developers increase their prices.

Regards

Roshan

[dubaizone]

usually property developers list the banks that are financing that particular project or property. Also if you go to the website of the banks in the UAE they will show you under their mortgages section the developers as well as the particular projects and properties that they are financing.

[snakyy21]

Thanks everyone. Does every development have a financing option? What about completed buildings ? Can any bank finance a completed unit or you still got dedicated financing institution. What are some of the major requirements for a mortgage?

[London32]

Hi guys this seems to help, But I would like to know is there a credit check? I'm in London and thinking of coming to Dubai to buy a property, but don't know where to start. Weather to buy off plan or get a mortgage.

Is there any brokers like we have in London who deal with everything at the banks and when the mortgage is done they take a fee?

All help is needed.

Thanks

[talk]

Originally Posted by London32

Hi guys this seems to help, But I would like to know is there a credit check? I'm in London and thinking of coming to Dubai to buy a property, but don't know where to start. Weather to buy off plan or get a mortgage.

Is there any brokers like we have in London who deal with everything at the banks and when the mortgage is done they take a fee?

All help is needed.

Thanks

Hi London32,

Many banks in Dubai do offer mortgages but you must reside in Dubai.If you are going to Dubai to live you must have ,

1.Job.
2.Contract of Employment.
3.Visa
4.Proof of Income.

to obtain a mortgage.If you are going to live in London? then use must use other means of finance.

1.Cash
2.Equity on property from your own bank.

Uk Banks will not offer mortgages for property in another country.


The above can all become a problem with new investors,so this is why we see many investors use developers 15year payment plans where everyone quailfies.


Reguards ....Talk (Northern Ireland)

[London32]

Originally Posted by talk

Hi London32,

Many banks in Dubai do offer mortgages but you must reside in Dubai.If you are going to Dubai to live you must have ,

1.Job.
2.Contract of Employment.
3.Visa
4.Proof of Income.

to obtain a mortgage.If you are going to live in London? then use must use other means of finance.

1.Cash
2.Equity on property from your own bank.

Uk Banks will not offer mortgages for property in another country.


The above can all become a problem with new investors,so this is why we see many investors use developers 15year payment plans where everyone quailfies.


Reguards ....Talk (Northern Ireland)

Thanks for that. What's the 15year payment plan... all I've heard of from Advertising is the 4 - 5 year payment plan.

Would you know any developers or recommend?

I am planning to relocate to Dubai, but looking for a job... so don't know when i will move.

thanks