Mortgages
Mortgages Plan
Dubai's banking system is continuing to adapt to the immense demand for property finance. Mortgages are available in Dubai for properties purchased by non-residents.
These mortgages are available based on the developer's arrangements with various banks, and the conditions can vary considerably from bank to bank and development to development.
It is normal to purchase your property and then apply for a mortgage. This is due to the fact that units cannot be held over a long period of time. There is no system for providing a mortgage "in principle" or as you may find in the UK the ability to obtain a mortgage offer before a property is purchased.
Interest rates as a rule are higher in Dubai than in the UK and therefore it is less expensive to re-mortgage an existing UK property (if that is an option) to pay for the property in Dubai.
Dubai mortgage providers tend to charge around 8% to 8.5% interest and usually require a 10-30% deposit. Most mortgages are only offered over a 15 year period.
The banks can charge a processing fee of as much as between 1-2%.
The procedure for approval of a mortgage can be lengthy. Al-Awael will assist all of our clients in finding the best mortgage provider for their particular requirements and will supervise the application from start to finish.
There are several UK banks based in Dubai including HSBC, Barclays Bank and Lloyds TSB, although they tend to act independently of the UK. Other major providers are National Bank of Dubai, Emirates Bank, Amlak And Tamweel, Noor Islamic Bank, National Bank of Ummal Quwain, Union National Bank(UNB), Habib Bank A.G.Zuric, Standard Chartered Bank, Commercial Bank of Dubai, First Gulf Bank, Abu Dhabi Commercial Bank(ADCB). Upon initial contact with Al-Awael, customers will receive a personal consultation and will be given advice on the finance available for particular developments before being introduced to the specific mortgage advisor.
Applicants must have upto 30% deposit in some cases.
