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Do you know about the Mortgage loans in the UAE? A Thorough Guide for Comparing the Mortgage Loan !!

A mortgage in the UAE makes it easier to purchase your dream home in the country. However, you must select the best mortgage for your needs.And with so many options and hyped-up marketing, people frequently make the wrong choice, and due to this, it is critical for loan seekers to compare their options to select the best home loan for themselves.Dhanguard is a comprehensive platform dedicated to assisting people in making better financial decisions. We provide a comparison list of the best mortgage loans  available.It will allow you to consider multiple options, compare them, and make an informed decision.

What do you mean by Mortgage Loan in UAE?

A mortgage is a loan provided by a bank, mortgage lender, or Islamic financial institution to finance the purchase of a residential property or home in the UAE. A mortgage is essentially a loan used to help you purchase a home. A deposit of at least 25% of the property value in UAE is usually required, and a mortgage allows you to borrow the rest from a bank or Islamic finance company. Borrower then pays back the amount owed plus interest/profit on a monthly basis for a period of 20-25 years.

Who can get a mortgage loan in the UAE?

Expats can obtain a mortgage loan  in the UAE, but they must meet specific requirements. It would help if you were employed in your current position for a minimum of six months or one year, depending on the lender's requirements and the area in which you are purchasing a home.

Additionally, self-employed individuals are eligible for a loan if they have been in business for at least two years.

It will be advantageous if they already have a relationship with the bank because the officials will be more familiar with their circumstances.Some banks will only accept applicants who have listed the specific companies employ.If you work for a multinational corporation, a financial institution, or a government agency, you will find it simpler to obtain a mortgage for your home.To be eligible for a mortgage in UAE, you must meet certain criteria, whether you are looking for a villa or an apartment. 

The following are the eligibility requirements for obtaining a home loan in Dubai:

  • Applicants must be 21 to 65 years old.

  • Individuals must be UAE nationals.

  • Individuals must have a monthly income of at least AED 10,000 if they are salaried and AED 25,000 if they are self-employed.

  • Some banks allow UAE residents with a minimum salary of AED 8K to apply for a mortgage, which is entirely dependent on the bank's policies.

How much is the Rate for Mortgage in UAE? 

The country's mortgage rate is determined by its current economic situation. As a result, the rates can change rapidly over a short period. However, the lowest fixed-rate interest rate is 2.75 percent for one year, 3.89 % for three years, and 3.99 % for five years.

Read More :-Things to Consider when you Compare Home Loan

Top Mortgage Rates in UAE 

The listing below is the top Mortgage Rates in UAE.

RAKBANK Home in One

RAKBANK Home in One combines home financing and current account holding. The loan's interest is calculated regularly, and you can withdraw the funds whenever you want. Furthermore, the reducing rate is 2.69 %  and can fluctuate throughout repayment. The minimum salary requirement for this loan is AED 15,000, and there is no cap on the amount of mortgage you can take. Furthermore, you can take the loan for up to 25 years and invest in property in Abu Dhabi, RAK, and Dubai.

Standard Chartered Mortgage One

It is one of the world's most reputable banks, and you can expect some of the best rates and features. The bank has already set the reducing rate at approximately 3.49 % under the Mortgage one scheme, while the fixed rate is 2%.The fixed rate fluctuates over a 25-year period, which is the maximum term. However, the rate will continue to be around the 2% mark.This mortgage will have a shorter term because most of the payment will be applied to the principal.How Iranion Nationalist will Set Up their Business in UAE rather than the interest. You must have at least a minimum salary of AED 10,000 to qualify for this loan, and the bank can provide up to AED 18 million. A 20 % down payment is required on the property price.

CBD Mortgage Loan for Expats

CBD provides an advantageous mortgage loan to expatriates. The bank offers a fixed rate of only 2.1 % over 25 years, with an annual reduction rate of around 2.99%. There is a minimum salary requirement of AED 12000 for salaried individuals, which exceeds AED 20,000 for self-employed individuals. The bank is willing to lend you up to AED 10 million. However, to obtain the loan, the property must be owned by the expatriates.

Emirates Islamic Manzili Home Finance

The bank offers one of the UAE's lowest mortgage rates. The fixed-rate is set at 1.81 % and is adjusted every 25 years. Furthermore, the annual reduction rate is approximately 3.2 %. This mortgage requires a minimum salary of more than AED 15000. To qualify for this mortgage, you must have worked at your current job for at least six months. You will also receive a credit card and a two-month installment deferment in addition to the mortgage.

United Arab Bank Home Finance for UAE National

The bank provides a low fixed rate of 1.69 percent adjusted for 25 years, as well as a reducing rate of 2.99 percent. Furthermore, there is a minimum salary requirement of AED 15,000 for employees and AED 50,000 for self-employed individuals.UAB will lend you up to AED 10 million on any property.

Conclusion

Because of its open-door policy, the UAE's economy has grown significantly in recent years. This policy aided the country in attracting foreign investors to invest in real estate and new business ventures in the UAE. As a result, many expats began living in the UAE on a rental basis to conduct business in the country. And when the UAE government made its mortgage policies more flexible, many foreigners became interested in purchasing property in developing Emirates such as Dubai, Abu Dhabi, and Sharjah. After all, everyone knows that the UAE will soon dominate the global economy.Thus connect with Dhanguard by reaching a Branch office or by visiting at our website for every information you need.

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