What is Home Loan in Dubai?
A home loan is also recognized as a mortgage, is an amount of money borrowed by a person, basically from banks and companies that lend money. The borrower has to return the loan amount with interest in easy monthly installments or EMI’s over time that can depend on the nature of the loan.
Dubai is one of the amazing city is all over the UAE, most people want to reside in this vibrant city. Now with the help of a home loan, you can easily buy a house in Dubai. Home loan in Dubai, UAE is something that potential homeowners search for quite a bit when they plan on buying apartments or villas in Dubai. When ex-pats make Dubai their home, they want to buy a property that suits their taste and fits within their financial means.
There are various types of home loan choices that are made to suit each unique condition. You can take home loans to buy homes that are either business or personal. When you take out a home loan, the bank or financial institution allows the property you are buying as security. This signifies that it holds the legitimate right to the home in the case of non-payment.
How to Apply for a Home Loan in Dubai
The process for applying for a home loan in Dubai, UAE is as follows:
- The first step is, you need to check how much money you required to purchase a home in Dubai.
- Then along with fixing the rate of interest comes the term of the home loan in Dubai, UAE going for a variable, or having the fixed rate of interest.
- The most important thing is your need to prepare all the necessary documents required for getting a home loan in Dubai.
- The process of obtaining a home loan often takes a few weeks. Thus, people selecting the same have to obtain advance approval from the banks.
These are some of the important considerations that you are required to examine to get a home loan in Dubai.
Documents Required for Home Loan in Dubai, UAE
If you are a salaried individual
- Application form, authorization letter for bureau check, and consent letter.
- Valid passport or National ID, Emirates ID, and residence visa.
- Original three months bank statement for new clients.
- Salary certificate.
In case you are self-employed
- Application form, consent letter for bureau check, and authorization letter for lending.
- Trade License copy, Chamber of Commerce Registration, Memorandum of Association.
- Original twelve months company and personal bank statements for new clients.
Eligibility Criteria for Applying for Home Loan in Dubai, UAE
- Aged between 21 to 70 years (at loan maturity)
- Minimum monthly income of AED 12,000 to AED 20,000.
- Minimum length of service of six months (if you a salaried individual), and the minimum length of three years in business (if you are self-employed).
