First Time Mortgage Guide

Buying a house is an emotional experience, throw in a foreign country with foreign processes and you have a stressful situation bubbling. 

It is so imperative to do due diligence before making one of the biggest investments of your life. You want to be approaching this life milestone full of confidence, excitement and a sense of conviction for the task in hand. 

It is advisable to get professional help from a trusted independent mortgage advisor who can aid you through the entire process from start to finish. The biggest commodities of life are time and money. Mortgage advisors can save you both! Mortgage advisors can often get exclusive rates which would not be available if you were to approach the bank directly. They will shop around a number of banks to find you the best option that fits your requirements saving you time. 

Before having a discussion with your mortgage advisor, it is important you know what you are able to borrow in the UAE.  If you are buying your first property as an expat for under AED 5M you can borrow up to 80% of the property value. If you are buying a property worth over AED 5M you can borrow up to 70% of the property value. For a UAE National the borrowing value is slightly higher; buying a property under AED 5M Nationals can borrow up to 85% of the property value and up to 75% of the property value when buying over AED5M. 

Step 1 - Consultation

After doing your own research and having a list of questions ready, it is time to contact a mortgage advisor for an initial consultation. Most advisors offer a free consultation and spend roughly 15 minutes finding out about your financial situation and your needs. During this consultation you should ask any questions you have. 

Step 2 - Documents

Once you are happy with your choice of mortgage advisor you need to send them all the documents that are required to start the pre-approval process: 

• Passport copies with visa page visible
• Emirates ID front & back.
• Salary certificate in original format addressed to ‘Whom it May Concern’ for initial approval.
• 6 months payslips if applicable.
• 6 months bank statements (internet copies will be suffice for initial approval)
• Latest credit card statement for all your cards.
• Details of existing liabilities (car loans/personal loans/mortgages).

Your mortgage advisor will go through this with you to make sure all documents fit the criteria before creating your file and completing your application form. Once you are happy with everything, your advisor will start the negotiation process with the banks. It usually takes the bank 2-3 days to get back with their initial queries. 

Step 3 - Pre-Approval

After the bank's queries have been addressed the Pre-Approval will be issued. This can take up to 5 working days. It is important to remember that a pre-approval will be valid for 60 days. 

Step 4 - Final Offer

You will now have found the home of your dreams and be ready to commit to a mortgage. Your mortgage advisor will need the property documents including the title deed, seller's passport and a floor plan of the property as well as the valuation fee and cheque. They will arrange a valuation conduction with the bank and thereafter it will take 5 working days to complete the final approval. 

Step 5 - Transfer of Property

One final step before you are a proud homeowner – the transfer of the property. If the seller of your property has remaining liability, your bank will pay this off and await the release of the original property documents. Your real estate broker or a sales progression team will closely oversee this entire process. Following this, we can proceed to apply for the No Objection Certificate (NOC) from the developer. Once the NOC has been delivered the property can be legally transferred from the seller to you, the buyer.