Home Loan for Salaried Individual

Purchasing a house is arguably the most significant financial move one will ever make. With ever-increasing real estate costs, purchasing a home without financial assistance is becoming increasingly difficult. Home Loans are personal loans provided by banks or financial institutions to individuals. If you are a salaried individual in need of a home loan, please fill out the form and contact our experts at Dhanguard.

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Salaried Home Loan

Are you thinking of applying for a home loan? Do you want to know how much money you could get if you applied?

Before you make a large financial commitment, it's best to know how much money you can borrow. We clarified the rules that govern your home loan eligibility, as well as the steps you must take before submitting your application.

Your income may or may not be required to be transferred to the account by the bank. Another thing to consider is if your company is on the bank's approved list of businesses. Some businesses, for example, have a history of late salary payments. Some banks only give loans to people who work for companies on their approved list.

What is the maximum loan sum allowed by law?

Banks are not permitted to provide loans in excess of 20 times an individual's monthly income, according to UAE Central Bank regulations. So, if you make AED 10,000 per month, the most loan you can get is AED 200,000.

What are the features of a Home Loan?

In recent years, the UAE has seen an increase in home loans. Banks and financial institutions have become more attentive to each individual's desire to purchase a home and are now offering simple and appealing schemes.

The following are some of the most notable characteristics of UAE home loans:

  1. A home loan is available to both UAE and non-UAE nationals.
  2. Repayment terms of up to 25 years are possible.
  3. Processing is easy, and documentation is simple.
  4. Loans for both residential and commercial properties are eligible.
  5. Interest rates that are extremely competitive.
  6. Flexible repayment options are available.
  7. Processing fees are reasonable.
  8. Full home-finance solutions are available to UAE nationals.
  9. Expat schemes that are appealing.
  10. Co-applications allowed.

What are the benefits of Home Loan?

The easiest way to realize your dream of owning a home is to take out a home loan. A home gives you a sense of peace and comfort, and it's also a good investment.

The following are some of the benefits of taking out a home loan in the UAE:

  1. Get a free house appraisal and insurance.
  2. The majority of banks have free credit cards that are valid for life.
  3. You can borrow up to 80% of the market value of your home in times of need.

What are the Documents required for Home Loan in UAE for Salaried Individuals?

As with eligibility, each bank will have its own document requirements for processing your loan application. The following are some basic documents that are required:

  1. A copy of your passport with a valid visa
  2. Emirates Identification Card (Not Required for Non-Resident)
  3. Certificate of Salary
  4. Initial bank statements from the previous six months
  5. MOU Copy
  6. Seller Passport Copy
  7. Title Deed Copy

What are the Home Loan Charges for Salaried Individuals in UAE?

Home loans come with a variety of fees and charges, which can differ from one bank to the next.

Home Loan Charges for Salaried Individuals

Processing fee

0% to 1% of the approved loan amount

Pre-Approval fee

0% to AED 1,000

Property Valuation Fee

AED 0 to 5,000

Prepayment Fee

1% of the outstanding amount or AED 10,000, whichever is higher. No pre-payment fee after one year.

Buyout Fee

1% of the outstanding amount or AED 10,000, whichever is lower.

It's worth repeating that these rates will fluctuate and alter at any time. Before applying for a loan, please consult with your loan provider.

Checklist for Home Loans

Because of the large sums of money involved in purchasing a home, you must prepare ahead of time to avoid making rash decisions. Since home loans are so readily available, you can be enticed to purchase a home even though you are not financially prepared.

Here is a guide to assist you in making the best decision possible.

Checklist for Home Loans

Research well

In a market with so many choices, it's convenient to choose a product or service simply because it sounds appealing at the time. As a result, doing your homework before approaching a lender and being straightforward about your goals will help you make the best decision.

Estimate your requirement with a buffer

Purchasing a home entails more than just paying the market value. There are a slew of other expenses to weigh before deciding on the amount of loan you'll need to realize your dream. Until finalizing the number, try to add in the smallest expense associated with purchasing the property and leave yourself a small buffer.

Don’t bite more than you can chew

A home loan is a lifelong friend. While a 20/25-year term will help reduce the instalment amount, it also raises the number of years you'll have to pay. Make sure you don't push yourself too hard.

Down Payment

The down payment requirements vary by association. A higher down payment would significantly decrease your debt obligation, while a lower down payment would give you more funds to work with. Consider carefully.

Fixed rate or Floating rate

Do not attempt to perform these calculations on your own. If you choose either choice, ask the concerned official for a list of instalments due. Then, with the help of an advisor, make a decision that is appropriate for your financial situation.

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