How To Take Out A Loan Against Your Property In Dubai

Loans against property are an age-long idea that individuals and groups use to acquire loans from financial institutions and private lenders.

If you are a UAE national, you most likely have a piece of land or landed property at your disposal. You can easily use them to get a loan.

Immigrants can also acquire loans against properties such as cars and houses. Also, if you buy a home or other immovable property in Dubai, you can use them to get a loan.

The loans can be sanctioned if the value of the debt is lower than the value of property used as collateral.

Loan Against Property For Expatriates In Dubai 

Like any other loan facility, getting a loan against property in Dubai is not a big challenge. Besides, you can use these loans as you wish without any restrictions.

However, below are some things you need to know before getting a loan against your property in Dubai.

• If you are an immigrant of the UAE, most banks require that you must have been a resident of the region for not less than two years before initiating a loan application.
• Expatriates must also hold valid residence visas.
• Only those authorized by law can take up loans from the banks.
• You will need a minimum of AED 30,000 and a maximum of up to 100% of the market value. However, this figure is dependent on your rental income and repayment capacity.
• Proof of land ownership or sale agreement.
• The loan duration is capped at 20 years, though the tenure can generally be customized to meet your needs so long as you clear the outstanding amount within the 20 years.
• There are no restrictions on using funds derived from the loan against property in Dubai. You can use the loan to buy another property, refinance an existing property, or consolidate other lenders.
• The loan attracts a much higher interest rate than personal loans from conventional banks. But this is because there is a much higher risk involved in lending money against mortgaged assets. However, you can get a better offer by doing proper market research on all the available offers.
• If you have the required documents, the application process takes only a few weeks until you get the disbursement.

Loan Against Property For Citizens In Dubai 

Getting a property loan in Dubai as a citizen is much easier. However, just like any other loan in Dubai, you will have to follow the proper process and avail some documents before the loan can be approved and disbursed into your account.

Let’s look at some of the things you need to know before starting this process.

• Although many lenders offer property loans in Dubai, they may not be effortless to get. Begin by doing your search to find a suitable lender in Dubai.
• Make sure the lender you settle on is licensed and operates under the law.
• Provide the required documents such as proof of property ownership and nationality by providing your Emirates ID.
• Allow the lender to perform the necessary property valuation to ensure it can support the amount of loan you need.
• Remember, if the lender approves the loan but you are not in a position to settle it in the agreed period, the property will be used as collateral.

Dubai Mortgage For Residents 

Property loans in Dubai are also available to immigrants or expatriates. If you work overseas in Dubai and have a stable income and a good credit history, you are highly likely to get a nod from several lenders.

Below are some of the things you need to know before you begin to look out for a mortgage loan in Dubai.

• A stable income with a minimum salary of AED 10,000
• The monthly repayments must not exceed half of your total income
• At least 21 years of age
• You must be able to complete the loan repayment before the retirement age of 65 years.

UAE Mortgage Pre Approval 

Before getting a mortgage loan, you must successfully go through the mortgage pre-approval process. Here is what it involves:

• Your application is examined
• You get a letter or email confirming the pre-approval in about two months

Loan Against Rental Property 

If you live in a rented house, you can qualify for a home equity loan of up to 100% of the equity, but this depends on the lender.

However, you must provide genuine rent receipts and ensure that the property is free from any encumbrance.

Zero Down Payment Mortgage Dubai

There are zero down payment mortgage loans in Dubai, and you can be lucky to get a lender with this offer if you do proper research.

However, you will have to meet the standard eligibility criteria for zero down payment mortgages. Below are some of the requirements:

• UAE National or Resident