Buying a Home Together: Should You and Your Spouse Have a Combined Mortgage in Dubai?
If you’re planning to buy a new house in Dubai with your spouse, one of the first things you’ll need to consider is how to finance the property. For most couples, this involves taking out a mortgage loan. But is it preferable for you and your spouse to have a combined mortgage? Are there any financial advantages to doing so? In this article, we’ll explore some of the key reasons why adding your spouse to a Dubai mortgage could be a smart choice.
Can My Spouse and I Purchase Property Together?
The short answer is yes! Married couples, as well as blood relatives, can apply for a combined mortgage in Dubai. In fact, this is a common option for couples who want to share ownership of a property. When both partners are named on the mortgage, they will both be responsible for repaying the debt.
Additionally, both partners will be included in the property’s title deed, which means they will jointly own the property. The percentage of ownership for each partner can be specified, and this will be reflected on the title document issued by the Dubai Land Department after the transfer is complete. While most married couples tend to divide the ownership equally, it is possible to adjust this depending on your financial arrangements.
What Are the Advantages of a Combined Mortgage?
One of the biggest advantages of applying for a combined mortgage with your spouse is the increased purchasing power. When lenders assess your application, they will look at your combined family income, rather than just the income of one applicant. This can significantly boost your affordability, potentially allowing you to purchase a larger or more expensive property.
For example, if you and your spouse both have stable jobs and good incomes, combining your financial resources can increase your ability to secure a larger loan. In some cases, this could even triple your purchasing power, giving you access to more options in terms of property size and location.
What Information Will My Spouse Need for the Mortgage?
In the UAE, a co-applicant (in this case, your spouse) will be required to provide the same biographical and financial information as the primary applicant. This typically includes identification documents, bank statements, proof of income, and details about your employment status. Both applicants will be evaluated based on their financial situation, which will help determine the loan amount and repayment terms.
However, if your spouse does not have a job, they may not need to provide proof of income. What matters most in this case is the primary applicant’s ability to demonstrate their financial capacity to sustain the payments on their own. Lenders will primarily assess whether the primary applicant’s income alone is sufficient to cover the monthly payments.
Should You Keep Your Spouse Off the Mortgage?
While there are many advantages to having your spouse on the mortgage, there may be situations where you might prefer to keep them off the title and the loan. Here are a few scenarios where this might make sense:
1. Separate Finances:
If you’re using personal funds, such as money from an inheritance or savings you accumulated before marriage, to purchase the home, you may wish to keep your finances separate. By not adding your spouse to the mortgage, you maintain complete control over the property and its finances. This could be especially important if you plan to keep financial assets separate for personal or tax-related reasons.
2. Estate Planning:
Keeping your spouse off the mortgage and property title may also be a consideration for estate planning. If you have children from a previous marriage or other specific wishes for how your estate should be divided, owning the property solely can give you more control. It allows you to pass the property to whoever you choose, regardless of your marital situation.
3. Protecting Your Assets:
If your spouse has a poor credit history or a track record of loan defaults, keeping them off the mortgage can be a way to protect your home and assets. Adding someone with a less-than-ideal financial background to the mortgage could potentially affect your ability to secure a favorable loan or risk the possibility of non-payment due to their financial issues.
Conclusion
Deciding whether to include your spouse on the mortgage when buying property in Dubai is an important financial decision. A combined mortgage can provide several advantages, such as increased purchasing power and shared responsibility for the loan. However, it’s equally important to consider your personal financial goals and circumstances. If you and your spouse are comfortable sharing financial responsibilities, a joint mortgage can be a great way to purchase your dream home together. On the other hand, if you wish to maintain separate finances or protect your assets, keeping your spouse off the mortgage may be the right choice.
Ultimately, the decision depends on your financial situation, goals, and preferences. Be sure to weigh the pros and cons carefully and consult with a financial advisor or a specialist to determine the best option for you and your spouse.
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