What you need to get a mortgage loan approved in Dubai

In recent years, real estate in Dubai has become an object of increased interest from international investors and ordinary citizens looking for comfortable housing. Particular attention is attracted by the possibility of buying real estate with a mortgage, which significantly eases the financial burden. However, it should be taken into account that in light of recent changes in the economic situation, interest rates on mortgage loans have begun to grow, which inevitably affects the decision to buy real estate on credit.

In this article, we will look at all of the above aspects in detail to help you make the right choice and reduce the risks when buying a property in Dubai.

Banks ' solvency requirements

In Dubai, as in any other place, banks pay special attention to assessing the solvency of the client when considering a mortgage application. They strive to make sure that the borrower will be able to repay the loan regularly and on time. One of the key factors that can significantly influence the bank's decision is the stability of the client's work experience.

• Stability of work experience
• Regular income
• No large debts

Stable work experience and regular income are the two main indicators that banks use to assess a client's ability to pay. Banks prefer customers who have been working in one place for a long time and have a stable income. This means that the borrower has a stable source of income to repay the loan.

In addition, banks carefully analyze whether the borrower has other debts. If the client already has significant debt obligations, the bank may decide that it will not be able to cope with the additional burden in the form of a mortgage loan. Therefore, before applying to the bank for a mortgage loan, it is recommended to reduce your current debts as much as possible.

It's also worth noting that banks Dubai may require the borrower to prove their income. This may be an income certificate, bank statement or any other document that confirms your income. Without such proof, it will be difficult to get a mortgage loan.

Role of the DTI indicator

The DTI (Debt-to-Income Ratio) indicator plays an important role in the mortgage approval process. This indicator allows the bank to estimate how much of the client's income is spent on debt repayment.

• Valuation of current debt obligations
• Impact on the bank's decision
• The importance of banks ' understanding of the client's current debt obligations
• Ways to improve your DTI score

Banks in DubaiAs in the rest of the world, the bank is obliged to take this indicator into account when deciding whether to approve a mortgage loan. If the borrower already has substantial debt obligations, the bank may decide that he or she will not be able to cope with the additional burden of a mortgage loan.

Therefore, before applying to the bank for a mortgage loan, it is recommended to reduce your current debts as much as possible. This may include early repayment of credit cards, auto loans, or other debt obligations. You should also pay attention to your monthly expenses and look for ways to reduce them.

In addition, increasing revenue can also help improve your DTI score. This can be a promotion at your current job, a part-time job, or even the creation of your own small business.

It is important to remember that improving your DTI is a process that requires time and planning. But the effort invested in improving it can significantly increase your chances of getting a mortgage approved.

Need for an advance payment

When purchasing real estate in Dubai An important condition for obtaining a mortgage loan is a down payment. Banks require the buyer to deposit a certain amount of money as a down payment.

• Minimum deposit percentage
• Impact on the bank's decision
• The importance of planning a down payment

Currently, the minimum down payment percentage required for mortgage loan approval in Dubai is 25% of the property value. This means that if you are planning to buy a property worth $1 million, you'll need a down payment of $250,000.. This point is important to consider when planning real estate purchases.

RIVIERA 35

from $343 605

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 36

from $190 589

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 41

from $245 043

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 59

from $394 792

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 61

from $300 314

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 65

from $367 020

Mohammed Bin Rashid City (MBR), Dubai, UAE

However, it is worth remembering that the amount of the advance payment may affect not only the approval of the loan, but also its terms. The larger the advance, the lower the interest rate and monthly payment may be. So if you have the opportunity to make a larger advance, it can be profitable in the long run.

Also, do not forget about the additional costs associated with the purchase of real estate, such as insurance, commissions, and so on. All of these factors should be considered when planning your property purchase budget.

Tips from experts

Buying real estate in Dubai It can be a daunting task, especially if you are not familiar with the local conditions and requirements. In this case, enlisting the help of an expert real estate agent can be a great solution.

• Help with the selection of real estate
• Options that match the client's budget and preferences
• Making the purchase process easier
• Mortgage loan advice

The agency's specialists have extensive experience in the Dubai real estate market and can help you find the perfect property that will fit your budget and preferences. They will also help you negotiate with sellers and banks, which will make the process of buying a property much easier.

The experts can also provide you with mortgage loan advice, help you assess your repayment capacity and find the most suitable loan program. They can help you understand the ins and outs of the mortgage loan approval process in Dubai and increase your chances of getting a mortgage loan.

Thus, contacting a real estate agency will not only help you save time and effort in finding the right property, but will also increase your chances of getting a mortgage loan.

The approval of a mortgage loan in Dubai depends on many factors, including the stability of the length of service, the DTI indicator, the amount of the advance payment, and others. Understanding these requirements and conditions will help you prepare for the mortgage loan process and increase your chances of getting approved.