Just Mortgages

Understand These Mortgage Facts – Frequently Asked Questions

How much amount can I borrow on my property from banks?

As per central bank law, 80% of property value can be financed for expats whereas 85% of property value can be financed for UAE nationals. However, we suggest getting Pre-approval from the bank so that you can know exact amount you are eligible for.

What is the cost of Preapproval?

Preapproval fees is nominal and varies from bank to bank.

How much time it takes to get preapproval from a bank? How long its valid?

Once all the required documents are received, it takes 3-7 working days. Its valid from 30-90 days, varies from bank to bank.

What are the cost associated with property purchase in Dubai?

The following are indicative costs associated with property purchase.

Real Estate Broker Commission - 2% of property purchase price (indicative).
Land Department Transfer Charge - 4% of property purchase price
Land Department Mortgage Registration - 0.25% of the Finance Value+290
Real estate Trustee fees – AED 4200
Developer NOC Cost - varies from Developer to Developer
Banks Processing Fee – Nil to 1% of Finance Value (varies from bank to bank)
Property Valuation Fee – AED 2500 to AED 3150 (varies from bank to bank)
Life Insurance Cost - To be indicated by the insurance provider
Property Insurance - To be indicated by the insurance provider

5% VAT is applicable on above costs.

Do Banks finance property purchase costs?

Yes, a few banks finance property purchase costs.

How do I improve my eligibility for higher loan amount?

Reduce or close credit cards, especially those you do not use. Contact us for more information.

How much is the maximum tenure of mortgage?

As per Central bank guidelines, maximum tenure is 25 years where age not exceeding, 65 years for salaried and 70 years for self-employed.

What are charges of early payment of mortgage?

As per Central bank guidelines, early payment attracts 1% of prepayment amount not exceeding AED 10000. However, a few banks offer free early settlement up to 50% of outstanding amount.

What happens in case of death/disability while mortgage is still going on?

At the time of signing mortgage, Life insurance covering death and PTD (permanent total disability) is charged by the banks. to cover outstanding loan amount.

How long does it take to complete the mortgage process?

From signing of MOU to property transfer at Dubai Land Department, the mortgage process takes from 30 – 60 days depending on the complexity of transaction.