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    Planning on getting a mortgage in Dubai? Note these 5 tips from an expert

    by

    Life

    by Ruman Baig
    50 seconds ago

    Thinking of buying a property in Dubai? This guide offers valuable insights from Mollie Credland, a Mortgage Advisor at Espace.
    Mollie dives into the essential steps to prepare yourself for a mortgage in Dubai’s dynamic property market. She covers everything from understanding down payment requirements to navigating the associated costs of buying a home.
    How to Get Mortgage Ready in Dubai?

    Know What You Can Afford & the Down Payment Required
    If, like most people, you require a mortgage to purchase your home, an experienced mortgage advisor can be invaluable at this stage. Homeownership in Dubai requires a minimum down payment of 20% for properties under AED 5,000,000 and 30% for properties valued above AED 5,000,000 (for expats). Note that the Central Bank allows first-time buyers to borrow up to seven times their salary.
    Establish How Much You Can Borrow
    Borrowing limits and mortgage affordability are typically calculated the same way across all banks in the UAE. Your monthly liabilities—car loans, personal loans, new monthly installments, and a percentage of your credit card limits—must not exceed 50% of your total monthly income. This is known as your Debt to Borrowing Ratio.
    Understand the Associated Costs of Buying Your New Home
    Many people make the mistake of simply applying for a mortgage which only covers the price of the house they want to buy. There are several extra costs involved in buying a property and when you are calculating the amount you’ll need to borrow, it’s important you take the following into consideration.
    – Dubai Land Department Fee: 4% of the purchase price + AED 580– Mortgage Registration Fee: 0.25% of the loan amount + AED 290 –– Real Estate Fee: 2% of the purchase price– Property Valuation Fee: Can range between AED 2,500 – AED 3,5004.
    How to Choose a Mortgage Provider?
    One common mistake people make is going directly to their bank instead of exploring the market. It’s always best to consult an independent mortgage broker who can advise you on the best products available. When selecting a mortgage provider, consider interest rates, loan terms, fees, and customer reviews of the bank. There are 18 banks in the UAE currently offering mortgage lending. Many banks offer preferential interest rates if you move your salary to them (salary transfer), so consider this option if it suits your circumstances.
    Apply for a Mortgage Pre-Approval Letter
    A mistake we see time and time again is people missing out on their dream home due to not having obtained their mortgage pre-approval. The property market moves quickly in Dubai, and many buyers become disappointed when they lose out to a pre-approved buyer who can fully commit to purchasing the property. Pre-approval lasts 30 to 60 days (depending on the bank), is free of cost, has no obligation, and can even be extended. I advise securing your pre-approval as soon as you start your property search to avoid disappointment and stress later on.
    – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
    Images: Instagram @visit.dubai  More

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      in lifestyle and culture

      Thinking of getting a mortgage in Dubai? 5 essential steps to take

      by

      Life

      by Ruman Baig
      3 hours ago

      Thinking of buying a property in Dubai? This guide offers valuable insights from Mollie Credland, a Mortgage Advisor at Espace.
      Mollie dives into the essential steps to prepare yourself for a mortgage in Dubai’s dynamic property market. She covers everything from understanding down payment requirements to navigating the associated costs of buying a home.
      How to Get Mortgage Ready in Dubai?

      Know What You Can Afford & the Down Payment Required
      If, like most people, you require a mortgage to purchase your home, an experienced mortgage advisor can be invaluable at this stage. Homeownership in Dubai requires a minimum down payment of 20% for properties under AED 5,000,000 and 30% for properties valued above AED 5,000,000 (for expats). Note that the Central Bank allows first-time buyers to borrow up to seven times their salary.
      Establish How Much You Can Borrow
      Borrowing limits and mortgage affordability are typically calculated the same way across all banks in the UAE. Your monthly liabilities—car loans, personal loans, new monthly installments, and a percentage of your credit card limits—must not exceed 50% of your total monthly income. This is known as your Debt to Borrowing Ratio.
      Understand the Associated Costs of Buying Your New Home
      Many people make the mistake of simply applying for a mortgage which only covers the price of the house they want to buy. There are several extra costs involved in buying a property and when you are calculating the amount you’ll need to borrow, it’s important you take the following into consideration.
      – Dubai Land Department Fee: 4% of the purchase price + AED 580– Mortgage Registration Fee: 0.25% of the loan amount + AED 290 –– Real Estate Fee: 2% of the purchase price– Property Valuation Fee: Can range between AED 2,500 – AED 3,5004.
      How to Choose a Mortgage Provider?
      One common mistake people make is going directly to their bank instead of exploring the market. It’s always best to consult an independent mortgage broker who can advise you on the best products available. When selecting a mortgage provider, consider interest rates, loan terms, fees, and customer reviews of the bank. There are 18 banks in the UAE currently offering mortgage lending. Many banks offer preferential interest rates if you move your salary to them (salary transfer), so consider this option if it suits your circumstances.
      Apply for a Mortgage Pre-Approval Letter
      A mistake we see time and time again is people missing out on their dream home due to not having obtained their mortgage pre-approval. The property market moves quickly in Dubai, and many buyers become disappointed when they lose out to a pre-approved buyer who can fully commit to purchasing the property. Pre-approval lasts 30 to 60 days (depending on the bank), is free of cost, has no obligation, and can even be extended. I advise securing your pre-approval as soon as you start your property search to avoid disappointment and stress later on.
      – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
      Images: Instagram @visit.dubai  More

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      in lifestyle and culture

      To renew the lease or relocate? Let the Dubai rental market report 2023 help you decide

      by

      Life

      by Ruman Baig
      1 hour ago

      The Dubai rental market is experiencing a transformation, with the latest report shedding light on intriguing developments.
      In recent years, Dubai’s rental market has witnessed a remarkable resurgence, effectively ending a period of negative growth that spanned from mid-2015 to late 2021.
      As of July 2023, the data from the Dubai Land Department reveals a staggering 43.5% increase in the total number of tenancy contracts registered compared to the same period in 2019, reaching a total of 325,727 contracts.
      This impressive growth has translated into average apartment rents reaching their highest levels since February 2017, and villa rents hitting record highs.
      However, beneath these headline figures, a significant divide has emerged in the rental market. The number of new contracts registered has dropped by 12.6%, while renewed registrations have grown by 29.0%. This suggests that tenants are opting to renew their leases rather than relocate due to the higher rates prevalent in new leases, especially in prime residential areas. These tenants are leveraging the protection offered by the RERA rental regulations, which cap annual rental increases at a maximum of 20.0%.

      To provide a comprehensive view, the report analyzed nearly 703,000 residential rental transactions between January 2018 and July 2023, focusing on both apartments and villas. In the apartment segment, it covered 23 different free-hold communities, while for villas, it encompassed 20 free-hold areas.
      For apartments, a noteworthy shift has occurred. Historically, new rental contracts averaged a 5.0% discount compared to renewed contracts between January 2018 and July 2021. However, with increasing demand, this trend has reversed, and in July 2023, new rental contracts commanded an average premium of 20.1% over renewed contracts.
      This change is not uniform across all communities; prime and core markets like Downtown Dubai, Palm Jumeirah, and Business Bay started achieving premiums on new rental contracts in early 2021. Although, secondary neighborhoods have seen relatively negligible premium growth compared to prime areas.
      In the villa segment, supply constraints have led to a different dynamic. Demand for single-family homes has surged, resulting in a 29.9% increase in the number of tenancy contracts registered compared to 2019 levels as of July 2023. Consequently, new rental contracts command an average premium of 25.2%. While this is slightly down from its peak in December 2022, the premium continues to hold strong.

      In conclusion, the Dubai rental market is witnessing a fascinating interplay between new and renewed contracts, with varying trends across different segments. Understanding these dynamics is crucial for both tenants and landlords navigating this evolving market.
      – For more on luxury lifestyle, news, fashion and beauty follow Emirates Woman on Facebook and Instagram
      Images: Supplied by CBRE Mena  More