The mortgage market is very efficient and organized in Dubai and has numerous international and local banks offering mortgages. We receive a lot of inquiries regarding off plan property mortgages and procedures involved in availing such a mortgage. This article will help you get void of any misapprehension you have in regard to off-plan property mortgage. Click here to contact us for any further clarification.
Off-plan property mortgage Dubai
Off-plan properties usually come with excellent payment plans but if you are looking for flexible payment then renowned banks in Dubai are offering off plan property mortgages. Banks offer off-plan property mortgage when the respective property is from a master developer and occasionally from private developers. Every bank has an approved developer list. You will be given a loan amount which will not be exceeding 50% of the original selling price of the property regardless of how high the market price is. In order to avail the mortgage loan you should pay to initial 50% of the property price as down payment after which the remaining 50% will be paid by the bank to the developers escrow account. If the bank is giving loan for 25 years then the interest rate will be 3%,4% or 5% .Once your off-plan property is completed you can change your loan type.
Here is how to avail completed property mortgage
Once your property is completed and if it is under Dhs 5million then you can avail 75% of the loan amount of the property value based on the market price, UAE national can receive 80% of LTA. The cost of changing mortgage type will cost you only 10,000/- AED*. If the property value increases, then can avail more loan amount, this requires a revaluation and re application of property to the bank.
Firstly you will have to talk to a bank or broker to discover what options are available for you. Once you choose right mortgage option, you will have to seek the assistance of a qualified lawyer for the transaction procedures. You have to submit the paperwork or required documents to the designated bank you have chosen in order to avail the mortgage, depending on the documents submitted by you, you will receive a pre-approval and then a letter of confirmation in regard to how much mortgage the bank can offer you. Now you will have to find the suitable property or if you have already found the right one then come to an agreement on the price with the seller. In order to confirm or secure the sale of the property you will you will have to pay an amount as a deposit. After that you need to provide any additional documents requested by the bank once and for all confirm your mortgage.