mortgage, Author at Capital Zone

Home Loan vs. Loan Against Property: All you need to know

Individuals who are looking for a loan to finance a specific goal or emergency have many options to choose from. However, with many loan products on the market, it has become confusing for people to decide which one is best suited to their requirements. When it comes to buying property, most people consider taking a home loan because it offers the longest repayment tenure and lower interest rates than other loans. On the other hand, a loan against property is also a popular choice because it offers higher loan amounts and can be used for multiple purposes. To help you make a better decision, here is a detailed comparison of home loans and loans against property: Home Loan v/s Loan Against Property When it comes to taking a loan, it boils down to these choices. Both have their own set of pros and cons, and it is essential to understand the difference between a home loan and a loan against property. Things You Need to Know before Applying for a Loan Against Property 6 Common Myths about Loan Against Property (LAP) Here’s a list of entirely untrue myths but deemed to be true by the masses: Myth #1 – A loan against property can only be pledged with residential property. Myth #2 – A borrower cannot use a pledged property as collateral. Myth #3 – You may borrow the full value of your property using this loan. Myth #4 – The interest rate on loans against property is always higher. Myth #5 – Only a high-income borrower can apply for LAP. Myth #6 – A LAP can only be used for business purposes. Things You Need to know before Applying for a Home loan? Applying for a home loan can seem daunting, but it doesn’t have to be. You can apply for a home loan through a broker or directly from a financial institution. Moreover, the things you must know are:- 5 Common Myths about Home loans Just like loans against property, there are many wrongful tales being spread out about home loans. The ones listed below are untrue: Myth #1- Mortgage interest rates are at an all-time high Myth #2- A borrower cannot use a pledged property as collateral. Myth #3- Only first-time home buyers can get a good mortgage deal Myth #4- The interest rate on home loans is always higher than on other types of loans. Myth #5- You can’t get a mortgage if you’re self-employed. You can also read: How to Qualify for a Mortgage in the UAE? How Capital Zone can Help You with Your Loan? Capital Zone is a leading mortgage firm that provides the best mortgage services to its customers. We have a team of highly qualified and experienced mortgage consultants who work closely with our clients to find them the best deals. We offer a wide range of mortgage products like home loans, refinance loans, commercial loans, etc., that cater to the specific needs of our clients. We are known for our fast, efficient services and the lowest interest rates. We have a track record of providing the best deals to our clients. Capital Zone is a name you can trust when it comes to getting the best mortgage deals. Conclusion: Home loans and Loan Against Property are two of the most common types of loans. While both loans have benefits, it is important to understand which is right for you. If you are still unsure after reading this article, please do not hesitate to contact us, and we will be happy to help you find the best loan for your needs.

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How to quickly sell your property in Dubai

With a vast and dynamic real estate market, finding the right buyer and getting the best deal for your Dubai property can be daunting. But, there are several tips that can help you sell your property quickly. In this post, we explore some of the best ways to sell a property in Dubai quickly, whether you’re a first-time seller or an experienced investor. 1 – Get an accurate valuation of your property Once you have made the decision to sell your property, the first step is to invite two or three leading agencies to value your property. This should always be an in-person appraisal of the property so that the agent can assess the location, condition and any upgrades to the property. The agent should also demonstrate knowledge and experience working within your community, and have comparable evidence of similar properties that have recently sold and the price they were sold for. 2- Choose the right agent for you When the agents visit you to conduct the valuation, ask them how they plan to achieve a quick sale whilst still getting the best price for you. You will be able to tell which agent is the most active from their comparable evidence and also by checking their online presence. It is important for you to be able to trust the agent you are working with as you will be working closely together to sell the property. 3 – Prepare your property for sale Buyers will typically view lots of properties before making the decision to commit to a purchase. This means that it’s crucial to ensure your property stands out from the crowd and sticks. This can often be done very easily without spending too much money, by making a few quick changes. If the property is vacant make sure it has been deep cleaned and freshly painted before the marketing begins. If you are living in the property make sure it is tidy, smells fresh and has lots of natural light pouring in. 4 – Prepare your documents to avoid delays You should speak to your chosen agent to confirm what documents you will require, and have them ready to go to ensure a quick sale. If you have made any significant upgrades to the property, you need to make sure you have all the correct NOC’s (no objection certificates) in place from the relevant authorities. These will be required to complete the transaction and if they are not in place, it can cause long delays. If you don’t have a mortgage against the property, make sure you have the original title deed in your possession, a copy will not suffice when completing the transfer. If you have lost the original title deed, the process to replace it will take about one month. 5 – Agree on a marketing and pricing strategy with your agent If you are looking to sell your property in Dubai quickly, then it is very important that the launch to the market is done in the correct way. Professional photos are an absolute must, as well as a video and a well-written property description. Your agent should know the amount that similar properties have sold for recently, and the listing price for your property should be at that price or a maximum of 5% higher to allow for negotiations. Before your property is marketed online, the agent should have a ready bank of potential buyers who have registered their details and whose requirements match your property. They should all be contacted and invited to a pre-launch open house event. 6 – Prepare for viewings Agents work very hard to sell properties, often working outside of business hours. They often carry out viewings in the early morning, late evening and over the weekend. In order to make a quick sale, it is important that your property is available to view at ease during different times of the day and that it is always looking presentable, clean and tidy. The front of your property including the entrance areas or front garden should also be presentable and inviting. The agent should arrive slightly earlier than the client and make sure that all of the curtains or blinds are open and the lights are turned on to create a welcoming environment from the moment the client arrives. 7 – Remember the market knows best Even when looking at comparable evidence, valuing a property is not an exact science and the market will always dictate what the true value of the property is. The value can change based on many different factors. If after 10 days on the market, you have not received an offer for your property or agreed on a sale, you should work with your agent to reduce the price to a level that will attract more interest. As a guide, this should be a reduction of at least 5%. The alternative to reducing the price would be to spend some money on upgrading the property. However, since you are aiming to make a quick sale, this may not be appropriate as the upgrades will prolong the time needed to complete the sale. 8 – Consider your offers When an offer is made on the property there are a few elements that need to be considered. The most important is obviously the price being offered. However, a close second is the buyer’s buying position. Are they buying with cash? If so, is the cash available now, or do they need to raise it? If they are buying with a mortgage, have they already started the mortgage process and have they been pre-approved? When time is of the essence, it is important for you to fully understand the buyer’s time scales for completion. 9 – Enlist a professional conveyancing company Once your agent has completed his main objective of securing a buyer for your property, the next vital step is to appoint a professional conveyancing service to manage the process from signing the contracts

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Discover the 5 Steps for First Time Home Buyers in Dubai

There is no escaping the truth: The process of how to buy a house is complex and can be overwhelming, especially for first-time home buyers. You can simplify the process of purchasing property in Dubai and ensure smooth sailing by taking the time to research answers to big questions as well as planning ahead. Step 1: Assess your finances As a first-time homebuyer, you’ll get to know the procedure inside and out by the end of the home-buying process. So, we recommend that the earlier you can wrap your head around your finances, the better. Speak to a broker Mortgage brokers work to find the correct mortgage with rates to suit your budget. They can show first-time homebuyers their best options. Their expert knowledge of the housing market means they are able to identify the best lenders and mortgage deals out there for first-time homebuyers. Understand all fees involved The real estate market in Dubai has one of the most robust regulations set in place to protect first-time homebuyers and sellers. This is why there are a number of upfront fees for purchasing properties in Dubai. These are payable by the buyer as well as the cost of the property. These upfront fees for buying properties in Dubai can differ depending on the type of real estate (ready or off-plan) and who the buyer purchases from (a developer or a private seller). As a first-time buyer of property in Dubai, this can be daunting, so make sure that you have the information to hand when looking to buy a home. Step 2: List your ideal property’s features A dream home, for a first-time homebuyer, is more about fulfilling wishes than meeting needs. So, when purchasing property in Dubai, don’t be afraid to make a sizable wish list. Rank each of these features in order of importance. While it’s unlikely that a first-time homebuyer will find a home that will check off every single box on this list, this exercise will help you focus on properties that work for all of you. Number of bedrooms One big thing to consider when purchasing property in Dubai is figuring out how many bedrooms you truly need. Buying a home that is too small will leave you constantly trying to configure the space in order to make it work for you. In the same vein, buying a property that is too large will allow you to spread out but will clock up large costs. Garden If mowing the lawn and trimming trees aren’t your idea of weekend fun and you don’t have funds for a garden service, steer clear of large, high-maintenance homes with large plots. A smaller yard will cost the first-time homebuyer less to secure and will attract lower rates and utility payments. Type of property Residential properties come in a number of different styles. The right one really depends on how much space you need, your budget, and your preferences for upkeep and maintenance. Town houses If you are looking to avoid difficult and expensive single-home issues such as security and the maintenance of large gardens, then buying a townhouse could be the right call for you. However, remember that buying a townhouse is more complicated than buying a stand-alone home, as the future value of your property will depend not only on its individual location and condition but also on how well the development as a whole is managed. Apartment Apartments are often a better option for first-time homebuyers because of their affordability. Apartments are also easier to rent out because they tend to appeal to younger people. Another excellent advantage of investing in an apartment is that these properties require less hands-on maintenance. An apartment may be a cheaper option for a first-time homebuyer as opposed to a free-standing home; however, the fees may increase over a period of time, especially if you have amenities in your building such as a gym, concierge, or heated swimming pool. Villas Villas in Dubai range in size from around 1,500 square feet up to 46,000 square feet. They are in gated communities, which means that the villas are safe, secure, and often in close-knit communities. While villa communities in Dubai can be centrally located, they usually have a calmer atmosphere than the glittering high-rise developments. They are set away from the busy highways and the air pollution that goes with them. This means that there is less noise, less hassle, and a peaceful living experience, something that first-time homebuyers often crave. For first-time homebuyers, Dubai villa communities can offer the perfect setting for private and secure living. When you purchase a villa, you’ll benefit from having your own space where you can create your own private oasis. These villas are the reason why people purchase property in Dubai. Investigate potential areas As a first-time home buyer, you must remember that when you buy a home, you are also buying into the neighborhood. Make sure it suits your lifestyle. That’s why it’s important to identify the wants and needs you have for your home and its location before making the commitment to home ownership. Finding your real estate agent It is wise for first-time homebuyers to establish which estate agents are active in the areas that they are looking at. They will also have a good idea of market-related property values for those who are interested in buying a home. When you purchase property in Dubai, the reputation of the real estate agent is important. A real estate agent’s knowledge of the homebuying process and the local market is key. You will get an idea of the agent’s competencies by asking a few key questions, like the length of time they have been in the industry and questions about the law pertaining to property transactions. Speak to your broker Before you engage the services of a real estate agent, make sure that you contact the Capital Zone team to see how much you can afford to spend. Ask for recommendations Ask your friends – as well

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Discover the Best Home Loan Deals in the UAE Market Today!

This is a question we always get asked by our clients. Unfortunately, the “best deal” for a home loan does not exist. The best deal for one person’s circumstances may be very different from the next person’s. The lending process in the UAE is typically broken down into two main options. A fixed-rate mortgage or a variable-rate mortgage: which option is better for an individual will depend on their plans for the property, their appetite for risk, and if they have experience in the property market. The breakdown of these options is shown below – Fixed Rate Typically, the banks will offer a fixed rate for a duration of 1-5 years. During this period, the interest rate you pay and the monthly mortgage payments will not fluctuate. After the fixed rate period, the rate reverts to a variable product. This is typically made up of the bank’s profit plus an EIBOR rate (normally three months’ EIBOR, but this varies by bank). Once you come out of the initial fixed-rate period, you have a number of choices – Once you have completed your fixed period, Capital Zone Representatives will assist you in making this assessment. Fixed rates are good for those who are risk-averse and would like to budget for their expenses. You may pay a higher rate to guarantee the security of fixed payments. NOTE: There are no fixed rates for the duration of a mortgage in the UAE. If you hear this, look into what is being offered. Variable Rate These hold no fixed elements. Your loan will start at a rate that can fluctuate from the outset. Your deal will be made of bank profit plus Eibor (in most cases). Your payments will go up if the interest rates in the region increase; however, you could also benefit from rate reductions if the rates come down, as long as the lender does not put a cap on the minimum rate. Variable rates are good for those looking to pay the lowest bank margin and who are not concerned with budgeting for their monthly payments. Other factors to look into with your Capital Zone representative when taking a loan – Processing Fee Lenders with special offers running will sometimes offer zero processing fees; these are not the norm, however. Typically, banks will offer from zero to one percent of the loan amount as a processing fee. Overpayments Lenders will allow you to make lump-sum overpayments in order to close your loan faster. Each bank has a slightly different policy on this. Some will charge you 1% for any overpayments, while others will allow up to 30% of the outstanding balance to be repaid each year with no charge. If you have plans to close the loan quicker, this is something to factor in. Life Insurance Life insurance is mandatory with any home loan in the UAE. Some lenders will set up a basic policy to cover you in the event of your death through their in-house relationships. Other lenders will allow the external assignment of insurance policies from international providers. The policy will need to be taken specifically for the loan you are taking, but you can shop for the best product that fits your needs. Capital Zone has contacts within the insurance market who can assist with your requirements. Offset Mortgage Offset home loans are very popular in more established markets but are fairly new to the UAE. These loans would suit applicants who have cash deposits in their current accounts. By operating a current account out of the same account as the mortgage, the savings in the account “offset” the total payments due on the mortgage. EG: If your home loan is AED 1 million but you have AED 300,000 in the account, then your interest payments are only on AED 700,000 rather than AED 1 million. This allows the loan to be paid off quicker. Related Articles: Home Loan vs. Loan Against Property: All you need to know New Residential Projects in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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How to choose the right developer for UAE off-Plan Property

Investing in off-plan properties in the UAE may be a terrific way to break into the real estate market or diversify your portfolio. Yet, considering all the developers providing off-plan properties, deciding which one to select can be tough. Here are some things to think about while choosing a developer for UAE off-plan property: Reputation and track record Before investing, it is essential to look into the developer’s reputation and track record. Check for reviews and feedback from former clients, in addition to their industry expertise. A developer with a solid reputation and a track record of success is more likely to keep their commitments and execute the job on schedule. Construction quality Be certain that the developer has a record for employing high-quality materials and building procedures. Examine the developer’s portfolio and prior projects to evaluate whether they satisfy your quality criteria. Location An important thing to think about is the off-plan property’s location. Pick a developer who has a proven track record of identifying great locations for their projects, such as those in expanding areas with local infrastructure, transportation, and amenities. Financing options Look to see whether the developer has flexible payment plans and financing solutions that meet your requirements. Examine the developer’s down payment, payment timeline, and service charges. Transparency Pick a good developer that is open and honest in their operations and communication. Seek for developers that give clear and simple information about project progress, payment arrangements, and other critical data. After-sales services After-sales services such as maintenance, property management, and resale support should be provided by the right developer. This demonstrates that the developer is dedicated to ensuring that their clients are happy with their investment and will give assistance even after the transaction is finished. In conclusion, if you pick the correct developer, buying off-the-plan real estate in the UAE may be a profitable investment. To make sure that your investment is risk-free, lucrative, and secure, take into account these considerations while choosing the correct developer. Related Articles:1. New Residential Projects in Dubai2. How to choose the right developer for UAE off Plan Property Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Myths Regarding Buying a Property and Getting a Mortgage in the UAE

Real estate in Dubai is booming. Whether you are looking to buy a property for yourself or as an investment, buying in Dubai is a great idea. Ask any mortgage consultant in Dubai and they’ll tell you the city has a lot going for it. There are a lot of misconceptions about buying property in Dubai. We asked our expert team to share the misinformation they come across the most when talking to customers. Here we’ll debunk some of those myths for you. You’ll need a large deposit You will need a deposit to get a UAE mortgage. How much you can borrow depends on whether you are looking to purchase as a resident or non-resident; expat or UAE national. It will also depend on your liabilities and income. If you are an expat and the property value is under AED 5 million, you’ll need a 20% deposit. If you’re a UAE national, you’ll need a 15% deposit. If the property value is over AED 5 million and you’re an expat, you’ll need a 30% deposit or 25% as a UAE national. Mortgage Consultant and Real Estate Agent fees are high It’s true that there are fees involved in buying a new home in Dubai. If you use a mortgage broker, they will typically charge you between AED 2,000 and AED 5,000. With Capital Zone You’ll be assigned your own expert mortgage consultant and they will do all the heavy lifting for you. There are other fees associated with buying a home. These fees include: Some banks will allow you to add a portion of the fees to the mortgage loan amount you want to borrow. Using a mortgage calculator in Dubai will help you get an understanding of how much you could borrow. Adding the cost of the fees to your mortgage means you’ll borrow more over a longer period of time, but the upfront cost of your new home will be lower. Buying a property in Dubai is more expensive than renting Untrue. Many expats stay in Dubai for a few years, but some choose to make it their forever home. Buying is a longer commitment to a property than renting a home but if you are planning on staying in the UAE as a long-term resident, then buying could work out to be more cost-effective. It is true you will need a deposit and have fees to pay upfront. But when you own your home, the money you pay towards it every month is paying off your mortgage. When you rent, that money is going to someone else. If you’re still not convinced, why not use our online Mortgage Calculator? This will help give you an idea of what a monthly mortgage repayment for you would look like. It’s free to use and takes less than two minutes. Your bank will give you the best mortgage deal This one is a very common misconception and it’s easy to see why it’s tempting to automatically make your application for a UAE mortgage with your bank. After all, you already have a relationship with them, an existing account and you likely trust them. However, there are hundreds of mortgage products out there and your bank might not necessarily have the best deal or best rate for you, so don’t be scared to shop around. Researching your options will take time, but don’t worry, let us do it for you. Capital Zone has mortgage products available from all the UAE banks so we will be able to get you the best deal for you and your circumstances. You need a perfect credit score You don’t need a perfect credit score to be accepted for a mortgage, but it will need to be healthy. Make sure your bills are always paid on time and try to reduce your credit card debt and existing personal loans. If you are serious about buying a home, now is not the time to be increasing your credit card spend. In fact you should make sure that you don’t spend more than 30% of your credit card limit. A lower credit score will not automatically prevent you from obtaining a mortgage; a higher score may get you more preferential interest rates on your mortgage. You can check your credit score in the UAE with the AECB (Al Etihad Credit Bureau). Getting a mortgage in the UAE does not need to be stressful. With the right information and a good understanding of the costs involved, you can make an informed decision. Related Articles:1. Five Reasons To Work With a Mortgage Specialist2. How to quickly sell your property in Dubai

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