Intro
Dubai mortgages can vary from development to development and in
many cases are promised but later prove to be unobtainable. Things
in the international property market are improving with a number of
British banks now offering mortgages in the emirate however again,
these will be dependent on the development. Our advice would be to
check whether the banks will offer you a mortgage prior to
committing to any property purchase.
Availability
In Dubai banks will request proof of earnings for up to five
years and letters from your bank as a reference. Typically
mortgages of up to 70% LTV are available with interest only options
offered at a lower LTV. In general the banks do ask for an awful
lot of information so the use of an international broker will be
invaluable.
Cost
Some banks offer the choice of different currencies with Swiss
Francs currently being the cheapest option. Even then, the interest
rates are 6.04% although this will vary from development to
development. It is difficult therefore to give precise
information. The early repayment charges apply for the first 2
years and the banks' arrangement fees are usually 2% of the loan
amount.
Application Process
The application process can be extremely complicated, varying
dramatically from development to development. Whilst it may be
smooth running for one application, you may find you become
engulfed in red tape for the next. The use of a broker is therefore
highly recommended before you commit to any purchase as it may not
even be confirmed that mortgages are available on the development
in question. Further, > you may find that the lending
criteria is so tight that you won't actually be able to obtain a
mortgage at all. Make sure you know all the facts before you
commit.
Mortgage Finance from Frontiers Financial Services
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