Frequently Asked Questions

Your mortgage should remain unaffected by the coronavirus pandemic in the short term. If you already have a mortgage, continue meeting your monthly repayments as usual. Should you face financial difficulties that impact your ability to meet your mortgage repayments, we advise you to make contact with your mortgage lender. In general, most Banks grant temporary relief for a period of up to six months to their customers in cases of job loss or other similar circumstances. If you have any issues or concerns, please feel free to contact our team for advice. The situation is constantly changing, and this information was correct at the time of writing. You can always contact your friendly Finance Lab advisor for any further queries.

Flat and reducing rates of interest are two methods of how interest can be calculated on a mortgage. A flat rate of interest is where the rate of interest to be paid remains the same for the duration of the loan as it is always calculated against the original amount borrowed (principal). A reducing rate of interest is where the amount of interest to be paid takes into consideration the repayments that have been made, so it is calculated against the remaining loan amount or outstanding balance rather than the original principal amount. On occasion, a flat rate of interest may be advertised at a lower, more appealing rate than its equivalent reducing rate. When taking a mortgage, it is important to establish with the bank or your mortgage broker whether a flat or a reducing rate has been applied. Our Finance Lab Mortgage advisor will be able to explain this simplistically and advise you regarding the best available products.

A security cheque is a type of guarantee required by every bank in the UAE when they give any type of credit facility, including credit cards, personal or car loans, or mortgages. The bank will require you to provide them with an undated cheque which covers the full credit amount as a minimum.

Security cheques are required by banks in the UAE as they are used in instances where the borrower fails to meet the repayments for the mortgage. Should this happen, the bank will present the cheque, and when it bounces, they will then be able to initiate a legal case to take possession of the property to repay the outstanding debt. This is not very different from other countries where the bank will have it written into their contract that they can repossess the property where the client defaults on the mortgage.

If your employer pays you a housing allowance, this can be considered as part of your income when you are applying for a mortgage. For example, if you currently live in company-provided accommodation and it is stipulated in your contract or salary certificate that you will be paid a housing allowance should you leave the provided accommodation, then the allowance you will be paid can be taken into account for your mortgage. You will still be required to have the necessary down payment, but the allowance can contribute to your affordability and, therefore can, in some cases, increase the amount you are able to borrow.

The minimum down payment for a property under AED 5 million is 15% for an expat or 10% for a UAE national. The minimum down payment for a property over AED 5 million is 25% for an expat or 20% for a UAE national.
Talk to a Finance Lab mortgage consultant to understand this in more detail.

Bonus income can be taken into account when applying for a mortgage. If it is a guaranteed bonus that is written into your contract or salary certificate, then it can be used to increase your eligibility, but a discretionary bonus can also be considered too, in some cases

Off-plan finance is available and is something we at Finance Lab can assist with. It is important to note, however, that mortgages for off-plan purchases are often limited to projects which are being undertaken by larger, more established developers.

Yes, both residents and non-residents are able to get a mortgage to finance their handover payment to the developer. Depending on how much has been paid prior to handover, Finance Lab will be able to arrange competitive terms with zero processing and arrangement fees. In some cases, you can also receive cash as equity release against your property if the value of your property has appreciated at the time of valuation or the down-payment paid is over the minimum threshold.

Some banks will allow an element of the associated costs for purchasing a property (such as DLD title registration & real estate broker commission) to be added into the mortgage, which helps save greatly on the upfront costs. Our Finance Lab mortgage advisors will be able to guide you comprehensively on this. You can find out about all the costs of purchasing a property and the specific fees you will be required to pay as part of the process here.

YES, it is quite easy to release equity (or cash) from your property as a non-resident. Similar to a non-resident mortgage, minimal documentation is required for this process, and you can release up to 60% of the property value, which can be used for other purposes.

A No Objection Certificate, commonly abbreviated to NOC, is a type of legal document issued by an organization or individual stating that there are no objections to the points made within the document. When purchasing property in the UAE, a NOC is normally required from the developer, giving clear title on the property and showing all the service changes and utilities have been paid. The NOC, in this case, shows that there is no objection from the developer to another person buying the property.

A title deed is a document registered at the Land Department which shows ownership of a plot of land. If you have purchased the property with a mortgage, then your name will be included on the deed as owning that property. The original title deed is kept with the bank as security until the mortgage has been fully repaid.

An MOU is a Memorandum of Understanding and is part of the purchasing process. It is an agreement put together by the real estate agent, signed by you and the seller, outlining the timescales and terms and conditions of the property purchase. We will always check the MOU on your behalf before you sign it. With the recent amendments in the process by Dubai Land Department, it is always recommended to sign a digital MOU (as this is considered as legally binding by the Court & RERA).

There are certain costs that you will need to pay when purchasing a property in the UAE. These can differ slightly depending on whether you are in Dubai, Abu Dhabi, or any other Emirate. The table below outlines the general fees that you will need to pay in addition to the cash deposit (or down payment). Dubai Land Department Fee 4%* of the purchase price plus AED 580 (Abu Dhabi Municipality is2%) Agent Fee 2%* of the purchase price. Mortgage Registration Fee 0.25%* of the mortgage borrowed plus AED 290. Bank Arrangement Fee 0 to 1.5%* of loan amount Trustee Fee AED 4,000* Valuation Fee AED 2,500 – AED 3,000* *plus VAT. It is possible to incorporate some of these fees into the mortgage.

The biggest benefit of using one of our mortgage advisors is that we are able to offer unbiased expert advice to help you find the best mortgage product for your situation. We will discuss all the available options with you and offer you our opinion on the best one for you so that you can make an informed decision. Our mortgage consultants will guide you through the property purchasing process in the UAE and will make getting a mortgage easy. We also have access to exclusive discounts and promotional offers which are not available when you apply to the banks directly.

A mortgage broker, otherwise known as a mortgage consultant, is an independent advisor who is able to arrange a loan between you and a bank to fund your property purchase.

Freehold is where you purchase the property in full (whether utilising a mortgage or in cash), so you own the property itself and the land that it is on. A leasehold is where you purchase the rights for the property for a limited period of time, normally for about 99 years. A leasehold property is uncommon in Dubai and the UAE, but there are a few areas where you can purchase a leasehold property, for example, Silicon Oasis and Green Community.

Land financing is available, and it can be provided to assist with both the purchase of the plot and construction on the land.

All types of ready property across all Emirates, whether freehold, leasehold, gifted, or land-gifted properties. Contact Our Finance Lab advisors to simplify the process of Financing.