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Additional Services

Mortgage Facilitations

 

  • loan. The lender agrees to hold the title or deed to your property until you have paid back your loan plus interest.
  • Amortization: Repayment of a mortgage/home loan by installments with regular payments to cover the principal and interest. Amortization Calculator.
  • Debt-to-Income-Ratio (DTI): The ratio of aggregate monthly debt to aggregate monthly income.
  • Down Payment: Money paid by a buyer from his own funds, as opposed to that portion of the purchase price, which is financed.
  • EMI: Equated monthly installments
  • Home Equity: Equity is the difference between the home's fair market value and the unpaid balance of the mortgage and any outstanding debt over the home. Equity increases as the mortgage is paid or as the property enjoys appreciation. For example, if your homes' market value is AED 100,000 and you owe AED 60,000 on your mortgage, then you have AED 40,000 equity in your home.
  • EIBOR: (Emirates Interbank Offered Rate) EIBOR is the interest rate charged by banks in the United Arab Emirates for inter-bank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates.
  • LIBOR: The London Inter-bank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow U.S. dollars, in the London money market. Like the U.S. treasury and the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
  • Loan-To-Value Ratio (LTV): The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 70 means that a borrower is borrowing 70% of the value of the property and paying 30% as a down payment. For purchases, the value of the property is assumed to be the purchase price, and for refinances the value is determined by an appraisal.
  • Mortgage: A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans. Calculate Your Mortgage.
  • Processing-Fee: The fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.
  • Pre-Approval: A term used to mean that a borrower has completed a loan application and provided debt, income and savings information that has been reviewed and pre-approved by an underwriter.
  • Approval: After your loan application is completed, a Bank loan processor and underwriter will review to ensure all necessary documents and information are included. They will then make a determination on whether or not you’re approved for the loan.
  • A Memorandum of Understanding is signed between the buyer and the seller confirming the terms and conditions on the re-sale property transition. The MOU is usually prepared by the broker and is signed by the buyer, seller and the witness.
  • Title Deed: legal document which is used to prove ownership of a piece of property.
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Personal Documents Required
Passport Copy (Valid for 2months)
Emirates ID
Visa Copy
khulasat al qaid (for locals)
Financial Documents Required Salaried Residents
(Nationals and Expatriates) Self-employed Residents
(Nationals and Expatriates)
Original Bank statements for past six months (stamped )

Note: six times salaries to appear on the
statement. Stamped Bank statements for past six months for both personal and company accounts by the company authorised.
Original Valid Salary certificate addressed to the bank ,stamped and signed Proof of existence of business (Partnership Deed, Memorandum of Association, Articles of Association)
Salary transfer letter (if transferring salary to the financed bank ) Business Profile (details of the nature of the business, number of years in business, products, services, suppliers, clients, infrastructure, number of employees, target markets, assets and liabilities, business strategy)
Details of existing loans/liabilities Proof of business income (certified audited financial statements for the last two years)
Details of 'other Income' (proof of investments and regular income sources) Details of 'other Income' (proof of investments and regular income sources)
  Details of existing loans/liabilities
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Bank MAX Loan
(UAE Million) Term
(Yrs) MAX LTV
(%) Interest Rate
(%) Processing
fees (%) Closure
(%)
10 25 < 90 with salary transfer in Abu
Dhabi
< 85 with salary
transfer in Dubai 6.5 - 9.5 1(no caps) 3 (if transferred to another lender; no fee after 3 years
( if own funds)
8 25 <90 5.5 - 8.5 1(no caps) <3
10 25 <70 5.49 - 5.99 1
(min.AED5,00
0)
*can be added
to loan Free
(min.AED25,000)
10 25 <80 5.49 - 7.75 1(capped at
UAE 25,000) 1 (no fee after 2
years);
3 (if transferred to
another lender)
No Limit 25 <80 7.99 - 10.5 1 - 1.25 1 or 5
(if transferred to
another lender)
10 25 <85 3.99 0.5 - 1 Full payment
1st ,2nd & 3rd Yr
2%
4th & 5th Yr 1%
After 5th Yr 0%
Note

1: (*) the above lender reserve the right to change their product policy, fees and charges ,interest rates ,
credit -scoring criteria at any time without prior notice.

2:Banks will generally only finance properties from developers on their approved lists
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  • Who can apply for a mortgage?
    Mortgage Services are open to all eligible UAE residents (Nationals and Expatriates) and non-residents.
  • What is the minimum salary requirement?
    Subject to each bank’s terms & conditions
  • Do I need to transfer my salary to the bank providing me the mortgage?
    No, you don’t need to transfer your salary to the bank issuing you a mortgage.
  • How do I apply for mortgage?
    It's very easy, all you have to do is visit Property Shop and we will do all the needful to connect you with a bank that provides you with mortgage as per your requirements.
  • Is there a minimum age prerequisite?
    The minimum age criterion for UAE residents (Nationals/Expatriates) is 21 years or older whereas for Non-residents it is 25 years or more.
  • What is the interest rate?
    Each bank has a different rate; Property Shop is responsible of putting you in connection with the most convenient banks. Apply Now.
  • Do I require any insurance when applying to a mortgage?
    Yes, life and property insurance are required when applying to a mortgage.
  • How much would my down payment need to be?
    Depending on the financial profile of the applicant, a minimum down payment of 10% of the total value is generally required.
  • When do I start my monthly payments?
    Its generally depending on the status of the property, if a handed over property then you can start immediately, if an under construction property, you can start on handing over.
  • Can I apply jointly?
    Yes, but you need to provide proof of first blood relation.
  • What are the differences between: Borrower, Applicant, Co-borrower and co-applicant?
    Borrower: someone who attains or receives a loan with undertaking to return it and its equivalent.
    Applicant: a person whom is seeking admission or assistance for mortgage
    Co-borrower: a second borrower who signs the promissory note for a mortgage loan along with the primary borrower.
  • Can I apply with my friends?
    No, you can’t if you don’t have legal documents to proof the first blood relation or marriage.
    If the co-applicant is not working, can he/she apply with me for a mortgage?
    Yes, subject to the borrower’s principal financials.
  • Can I register the property under my company name based on my personal financials?
    No, this is not possible.
  • Under which name the property and mortgage should be registered if the person is self employed?
    It should be under the person’s name.
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Disclaimer

The information set out on this page is based on a variety of sources. Property Shop Investment does not provide any guarantee or warranty in respect of the accuracy, completeness or quality of the data and any other information provided on this page. Any views, statements or representations provided for do not necessarily reflect Property Shop Investment's opinion.
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