Vital Things You Should Consider while Applying for Home Loan in Dubai

While purchasing a house, most of the people become ignorant of certain vital things mostly out of excitement. It is therefore advisable that you should be wise enough in such a scenario and also take some time out to check out from diverse banks or lenders about their offerings.

As per a recent survey, over 80 percent of the UAE residents wish to purchase their house within next 5 years. Well, unless and until there is huge amount of savings or liquid assets at disposal, their only way to realize their dream is through a home loan. Whether you are a resident of UAE or an expatriate, there are a few key things you should know as well as follow when you choose home loan in Dubai.

Get pre-approval

Well, it is imperative that you get mortgage pre-approval in order to determine budget in advance. It is necessary for a buyer to make a certain amount of payment while signing sales agreement. Therefore, pre-approval is only advised for smooth processing before you lay eyes on your dream home.

Know about the fees involved

Each and every loan has their individual fees attached, be it personal loan, car loan or any other kind of finance. Similarly, a home loan also comes with some fees attached. A good home loan usually includes certain fees such as property valuation charge, arrangement fee as well as application fee.

Interest rates

The home loan interest rate is first thing that should be checked before shortlisting your home loan. Usually, the interest rates of home loan are of two types and they also vary from one bank to other. As the name suggests, fixed interest rate becomes constant till the end of tenure whereas variable interest rate keeps on fluctuating. The home loans with fixed rate of interest ensure better planning as well as minimum risks, though you can end up paying more amount of money. Loan with varied interest rate are largely dependent on economy, so when there are high chances of paying less interest rate, there is also minimum risk associated with it. In case of some loans, banks charge fixed interest rate for a certain period as well as shift to variable rates afterward.

Increase in the rates 

Huge home loan with a longer tenure may get affected largely by hike or alteration in the rates. Therefore, you should try to keep the tenure and amount as minimum as possible.


It is known to all that the financial market is one of the most volatile sectors. Undoubtedly, there is absolute no certainty about the future. Therefore, it is advisable that you should compare and also do research before finalizing your loan. Instead of asking for lower rates of interest, one must focus on the banks that offer flexibility like low early repayment fees, payment holiday and so on.

Do a comparison

You may do research on your own or you may also talk to the private broker of mortgages. Whatever you do it, your objective should be to find out best deal. Diverse home loan products may work best for diverse people and it depends on one’s liability, needs and income. You should carefully calculate the fees, interest rates as well as current deals to increase your scope of having best deal.

Know about eligibility criteria

Although differs from one bank to other, the following are a few key things that all lenders or banks usually look out for:

  • Minimum length of salary
  • Minimum salary
  • Whether or not you work for the company listed with the bank
  • Age
  • Credit score

Coming to the expatriates, the following are a few vital points that you should remember before applying for home loan:

Make sure you should look out for property in freehold zone only. Few examples of popular freehold areas in Dubai are Downtown Dubai, International City, Palm Jumeirah Islands, Dubai sports city and Dubai Marina.

Home loan for the expatriates:

The following are the essential documents necessary for expatriates in order to get best mortgage. However, this list may vary depending on bank as well as other situations:

  • Passport as well as other essential copies
  • Residential proof
  • Address proof
  • Salary certificates as well as evidence of regular income
  • Necessary bank account statements for 3 to 6 months
  • A fee for land registration of nearly 1 to 2 percent for new building development as well as other charges like legal fee, maintenance charge, developer fee and so on
  • A land registration fee of around 1-2% for new building developments and also other fees such as maintenance fee, legal fee, estate agent fee or developer fee.

A right home loan decision taken after due consideration may lead you to own asset in terms of property as well as your own happiness. Therefore, ensure that you should do your own homework before applying for one of them.

Looking for best home loan in Dubai? Take help of MoneyDila. Undoubtedly, it is one of the leading portals in UAE. Whenever one needs personal loan or home loan or mortgages in Dubai, MoneyDila is the best place to explore. It is undoubtedly one of the leading private lenders in Dubai city for home loan. Located in Dubai city, this company has been dedicatedly serving residents as well as non-residents of UAE to avail home loan in Dubai. They can make necessary arrangement for loan and all you need is to specify your needs.

What do you think?

Written by Michael Curry

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