Mortgage - Step-by-step

Getting a quick mortgage in Dubai can be an easy process, but there is a lot of paperwork involved in that process, especially if you are getting a mortgage for your dream property. A lot of different factors come in to play when banks are considered the amount of money they are willing to lend to individuals, including their nationality, salary, previous loans and even if the property they wish to buy has had a mortgage taken out against it previously. The below guide can help you step-by-step, to ensuring your mortgage application in Dubai runs smoothly. As a first step, go to your choice of bank to get a pre-approval for your mortgage from the bank. This is when the bank will assess your past background, income and financial prospects before offering you a certain amount of money in form of a mortgage. You can then search for a property in this price range. Once you choose a property you would like to buy, you will need to sign a Memorandum of Understanding with the seller, and your property agents before you proceed further. This is when a time frame for the property exchange is agreed and a deposit (usually 9% to 10%) is held with the seller’s agent, only to be cashed if the buyer pulls out of the deal for you. In next step The buyer must then send the dual signed MOU and passport copies to the bank to get a final approval letter for their mortgage. Now, along with this, the buyer needs to issue bank cheques for the valuation of the property, where the buyer has to hand over three to four undated monthly installments + one cheque totaling the amount of the value of the proposed property. After the bank receives the valuation fee, they will issue the buyer with the final letter of approval to go ahead on that, with the whole process normally taking 5 working days. Once the NOC is issued, the bank/agent need to register the transfer with the DLD (Dubai Land Department) office immediately. The down payment then has to be paid with the registration fee, which is 4% of the value of the home, plus a small admin fee on top of it. When all of the above has been completed the DLD will issue the new title deed for your property. The buyer then pays the agency fees and gains the keys  to their new dream home in Dubai.