• Home Loans and Mortgages in Dubai

    Introduction to the Home Loans in Dubai

    Buying a dream home in Dubai, in the UAE, is a dream shared by a lot of people. But sometimes they tend to find it a bit difficult to make this dream come true and more often than not, it is a result of a lack of funds to purchase a house. This is the problem that home loans aim to solve. Home loans in Dubai offer a customers a wealth of choices and conveniences.

    Features of Home Loans in Dubai

    These home loans offer customers up to AED 25 million for the purchase of the house. Most banks will also offer to fund up to 75% of the property. The mortgage is available for homes that need construction as well as those that have already been constructed. Even those planning to buy a house from another individual can opt for such a loan. Another great advantage of these loans is that they can be availed by UAE nationals, expatriates with a residence visa and by non-residents. Many banks also offer buyout loans which can be used to transfer the balance on a home loan from one bank to another for the purpose of availing lower interest rates and other fringe benefits. With some banks customers may need to go in for salary transfers while others don’t require such commitments and offer benefits like waiver of processing and property valuation fees.

    Home Loan Interest Rates in Dubai

    The interest rates that are charged for these loans also offer customers a choice of fixed interest rates and variable interest rates. Some banks also offer a combination of the two interest where customers get fixed interest rates for the first few years and thereafter it switches to the variable interest. The variable interest rates offer the customers the advantage of being able to take avail lower interest rates depending on the market situation; an opportunity that is not available with fixed interest rates.

    Some of these loans follow the principles of Islamic banking and allow customers to take the loan under the concept of Ijarah where the bank purchases the property on the customer’s behalf and then leases or rent it to them for a specific period of time. Once the tenure of the lease or rent is over, the property is transferred to the customer.

    News about Home Loan in Dubai

    • Dubai residents want relaxed mortgage rules

      Call to relax mortgage caps are being called for because of sluggish Dubai property market. The relaxing of the rules will kickstart real estate recovery. The main reason for the real estate’s sluggish growth is difficulty in securing finances and the major segment of tenants are being kept away from ownership by the regulations. The Central Bank of UAE introduced the mortgage cap which restricted the loan-to-value ratio 75% for the expats and 80% for Emiratis for property that cost less than Dh5 million. The relaxation of the rules will be sending a wrong message to the market, instead there is a need for affordable housing in Dubai.

      08th September 2016

    • Dubai Property Prices Unlikely to Hit Rock Bottom

      Prices and rents are likely to continue to fall in 2016 amid global economic uncertainties, but property values may not hit rock bottom as long as dollar values remain high, crude oil prices fall below the 2008-levels, home loans become costlier and homes become cheaper as supply grows.

      Between 2003 and 2008, Dubai property market grew substantially, with home prices going up by four times, rents increasing, increased bank lending to real estate developers and construction firms, and large-scale inflow of foreign capital.

      In 2008-2010, home prices started falling more than rents, making Dubai properties more affordable and bank lending towards home loans and property loans rose again. By 2012, the property market had matured, was regulated and undervalued. However, the prices climbed in 2013-14.

      Rise in US dollar exchange values and the decline in value of the Euro, British pound sterling, Russian rouble, Indian rupee and Turkish lira against the UAE dirham in 2014-16 brought down overseas demand for Dubai properties. Home prices fell by 15-20 percent in 2015. However, rents fell by only 3 percent.

      09th February 2016

    • In MENA, the top cities are Dubai and Abu Dhabi

      In a recent survey conducted by Bayt and YouGov, Dubai and Abu Dhabi are the 2 cities that are consistently topping all categories from environmental and socio-cultural factors to jobs and workers’ rights, to name a few. The survey showed that almost 73% in Dubai were either happy living in the city and Abu Dhabi had almost an 83% of people answering the survey. In both Dubai and Abu Dhabi they offer more benefits to working parents, have good career growth, amenities that are affordable. In the survey, Sharjah scored the best when it came to housing availability and affordability.

      13th October 2015

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