A mortgage is a loan that enables you to buy a property or a land. The bank lends you money at interest in exchange for taking title of the ownership of the property, with the condition that the borrower repays the bank, failing that, the lender can take possession of the real estate.
The down payment is the initial amount of money you must give to the lender in order for them to provide you with a loan. Typically in UAE, local home buyers make a down payment totaling 20% of the price of the property and 25% for the expats home buyers. This applies for ready properties and under construction properties. Regarding the commercial space, the down payment is 35% to 40%.
In the UAE, typical rates vary between 2.99% to 7%. PSI deals with over 20 banks within UAE that offer as many as 250 different mortgage products with discounted rates in order to get you the best home loan deal.
Typically, banks charge the applicant 0.5% for processing fees. The valuation fees usually represent AED 3,000 and it includes an inspection of your property for the bank to know if your home is safe enough to lend on.
Our quick and easy Mortgage Calculator will help you have an idea of the total mortgage payment for your property. Thus, you only need to enter the property value, the amount of down payment in %, the term over which you intend to and the bank's interest rate. Please note that these figures are only a guide based on the provided information.