Buying an Off-plan Property With a Mortgage in Dubai

The property developers in Dubai offer different types of amazing properties and modern residential projects that simulate people’s tastes and needs, providing them with residential experiences that meet their ambitions and aspirations of owning their dream home. Purchasing apartments in Dubai and finding the family home where you can grow and prosper is a very important thing a person does during their life, a move that can reflect a ray of happiness on all aspects of one’s life and contribute to making it smoother and easier. 

However, many people can’t afford the amount required to own their house of dreams. getting a mortgage can represent a suitable solution for these people as it provides them with the opportunity of owning apartments in Dubai and pay for it through multiple installments over a period of time that would be decided according to the type of the loan besides some other circumstances.

Leading property developers in Dubai that are well known with their good reputation in the market often offer distinguished off-plan properties, that are listed for sale while under construction providing competitive sale prices compared to ready properties. Takin into consideration that these properties meet the basic requirements that people in general and modern buyers specifically look for and beyond, in addition to the reasonable prices that off-plan properties offer make these properties highly demanded, especially in recent years by both investors and buyers who want to live in luxury apartments in Dubai.

The question that arises when someone thinks of buying off-plan apartments in Dubai is, do banks and financial companies give a mortgage loan for off-plan properties?

A lot of banks, finance companies, and financial institutions offer mortgage loans for off-plan properties, especially those developed by reputed property developers in Dubai known for their commitment to the time plans they provide. The percentage provided by mortgage loan providers in Dubai for off-plan properties is 50% of the total property value. This percentage applies to loans granted to off-plan properties for both citizens and non-citizens, whatever the total property value is.

This means that the buyer of the property or investor will have to provide a down payment equals to 50% of the total property value in order to have a mortgage loan from the bank or financing company, otherwise the mortgage loan provider will not provide the mortgage.

You can verify if you can have a mortgage to finance the purchase of off-plan apartments in Dubai by checking the real estate developer list to make sure that it has the name of the property developers in Dubai you’re planning to buy your property from. When this point is verified the bank or financing company will perform an evaluation depending on several factors to decide if you meet the requirements for obtaining a mortgage. 

Evaluation measures that take place before approving the mortgage loan financing include considering the value of the property and thus the value of the loan required and how it agrees with the fixed income of the loan applicant and their financial ability, which will determine their ability to commit to repaying the loan. It is worth mentioning that the income that is taken into account is limited to fixed income only, or to a verifiable business or rental income, while any non-fixed income regardless of its source is not taken into account. 

among other measures that are taken into consideration is whether the borrower obtaining other loans or not, besides the presence of other obligations and debts and other matters that may have a direct impact on the borrower's ability to repay the mortgage loan. For more detailed information please click here

Once you meet the evaluation criteria and terms that make you eligible to apply for a mortgage loan by the bank or financing institution, you will be given a (pre-approval) which is a certificate of recognition of your eligibility for a mortgage loan.

Obtaining a mortgage loan to support your purchase of an off-plan home is a step that may change your life for the better, which is an opportunity that banks and financing companies in Dubai provide allowing you to enter the real estate investment world or become a proud homeowner. with a repaying plan that guarantees your ability to commit without heavying your shoulder with a burden that is too much to hold that prevents you from enjoying achieving the goal of having the house of your dreams.

 

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