- September 15, 2021
- Posted by: admin
- Category: Loans
Taking a home loan for residents and expatriates in the UAE is a necessary aspect when buying an apartment or villa in the UAE. If you consider the important number of expatriates recently living or who are keen to live in the UAE, they may need a home that best suits their personal taste. Many people are looking to get the best home loans in UAE because of the fact, if you are interested and want to get a home loan then you can communicate with the Taskmaster loan brokers who will surely guide you and also provide you assistance to obtain a home loan on your behalf. Below we mentioned a complete guide on how you can get a home loan easily without any obstacle.
Adhered to the Prerequisites for Buying Best Home Loans in UAE
Home loans are a common and popular occurrence in every city. There are various types of home loans in the UAE that are provided along with the loans subject to some conditions. First, you need to find out how much amount you will need to pay in advance. Second, depending on the loan term, you need to consider whether to select viable or fixed rates of interest.
1. Upfront Cost
While purchasing a property, you need to pay a fixed amount in advance. With the down payment, you also need to take into account the registration charges, valuation charges, transfer charges, and real estate commission. Certain Banks also permit expatriates to add 3 quarters of the total purchasing charges for the home loan they are getting in the UAE.
2. Pre-approval of Mortgage
Prior to you set out to look for a home, you need to obtain a pre-approval for a home loan or mortgage. It would support you to narrow down the search depending on your specific budget. In addition, at the time of signing the sale contract, you would require to pay a cheque amounting to 10% of the total price of purchase. Hence, if you don’t get the financial approval and the bank later refuses to give a loan, then you would lose the deposit amount that you made the payment to the bank.
3. Valuation Clause of Sales Agreement
Be sure to check whether your property has an appraisal clause. Prior to providing home loans in UAE, banks do a thorough appraisal and take steps in property appraisal. If throughout the procedure, the value of the property becomes higher, the bank may adjust the loan amount as peeped the property valuation.
4. Duration of the Best Home Loans in UAE
Whether you are an expatriate or a resident, you must be below a specific threshold to get a home loan in the UAE. Home Loans are provided in UAE for a maximum period of 25 years, with the age limit being 65 years for salaried persons, and 70 years for a self-employed person. When you extend the tenure of the loan, you would need to pay a low installment, but this enhances the interest price. Furthermore, your borrowing capacity enhances as well when you select a long-term home loan in UAE.
Another choice is to select a long-term loan and reduce the tenure by paying an additional amount every year. Without penalty, you can pay an additional 10% of the principal charge every year. Ensure that you take professional help hence you can learn more regarding the possibilities and make well-informed options.
5. Rates of Best Home Loans in UAE
Invest in a home loan in UAE can differ between 2.10 and 5%. Currently, the rates are coming down and reported to be even lower in the times to come. Although, these rates are extremely volatile. In case you select a fixed-rate, then this would remain similar for 2 years. After this duration, banks would apply for a revision payment. If you have made less payment in advance, the revision rate may be higher. Though you can receive a fixed rate for 5 years, you would need to pay a higher interest rate. The rate of interest can range between 2.99% and 3.25%.
Also, variable rates of interest home loans are another choice that expatriates need to loot at. Although, this may be a trick to estimate the total amount you would pay over the loan period. When we are dealing with a variable rate of interest home loans, this becomes impossible to create proper budgeting.
But if you have a good understanding of the market and you think the rate of interest would go down in the future, selecting variable interest means you would pay low. But you can’t make a decision based on your intuition alone. Your prediction could be wrong and the rate of interest can arise.
Also read, How To Get Mortgage Loans In Dubai