best mortgage brokers in uae Archives

Options Available for Non Residents to Buy Property in the UAE

If you’re a non-resident looking to buy property in the UAE, our Non-Resident Investment Guide will give you all the information you need to know before you start your property search. The good news for investors is that there are several options available for a non-resident to get a mortgage in the UAE and take advantage of the fantastic property market. Home loans are available to investors in Dubai, Abu Dhabi, and possibly the Northern Emirates. There are different levels of lending or loan-to-value available depending on the applicants profile and what documents they can provide. 50% LTV – Non-Resident Loan for Property If you are a non-resident wanting to get a mortgage in the UAE, the easiest way to do this would be at 50% LTV (loan-to-value) In this case, the lending bank will usually require three months of bank statements showing a suitable average sitting balance over three months, as well as a copy of your ID and proof of address in your home country. The balance of funds needs to be – The bank will carry out their calculations to prove affordability and offer a 50% non-resident mortgage based on this. 60%+ LTV mortgage Loans above 50% LTV are available but are more complex to achieve. The banks at this level will carry out more underwriting, and alongside bank statements, they may wish to see, among other requirements: If the applicant has a good profile and can provide these documents, this is a good option, but be prepared for the lenders to carry out a more in-depth review as extended lending is seen as a higher risk. We deal with hundreds of non-resident applications from all countries in the world. Our clients are looking to buy apartments and villas in the UAE and benefit from the tax-free rental yields of anything up to 8%. You can access our mortgage calculator online to discover the best lending rates that are available for non-resident investors in the UAE. Where can I invest in the UAE as a non-resident? Dubai Non-Emiratis, both residents and non-residents, can buy property in any of the freehold areas of Dubai, alongside a couple of leasehold areas. Non-resident investors tend to like to invest in the coastal areas to be near the beach and near major landmarks and experience the holiday lifestyle Dubai offers. Top locations for investment include – Property Uses Overseas property investors have the option of buying a property for a holiday or vacation home, which can be used by friends and family throughout the year, or alternatively, investors can look to earn a tax-free income by leasing the property out. The properties can be leased on a long-term annual agreement, or more investors are looking to increase their ROI (return on investment) by putting the property up for short-term holiday style lets through a management company. Abu Dhabi Non-GCC nationals who are looking to buy in the capital, Abu Dhabi, can look to purchase in designated freehold or leasehold areas. People are drawn to the quieter lifestyle in Abu Dhabi and like the island’s proximity to top tourist attractions and golf courses. The top areas for investment are – Related articles:1. Things to Consider When Purchasing Mortgage Protection Insurance in Dubai2. The 11 Best Family-Friendly Communities in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Top Areas to Buy Non-Luxury Apartments in Dubai

Dubai is a hot spot for real estate investment globally. The Emirate offers a wide range of properties ranging from apartments to villas. What’s more, you don’t have to burn a hole in your wallet to own your dream home in Dubai – there are plenty of affordable options along with luxurious ones. Let’s check out the top areas to buy non-luxury apartments in Dubai. LIST OF TOP AREAS TO BUY NON-LUXURY APARTMENTS IN DUBAI JUMEIRAH VILLAGE CIRCLE – JVC Jumeirah Village Circle is the most searched area for buying affordable apartments in Dubai. It was estimated that the average sales price per square foot for apartments in JVC recorded a rise of 12.15% in 2022. Being a thoughtfully designed community, JVC offers plenty of amenities and lush green spaces, promoting a healthy lifestyle. That said, the area has an ROI of 6.9% and an average sales price of AED 780,000 in 2022. JVC is among the popular residential clusters in Dubai. Residents of JVC enjoy a vibrant and diverse community with a mix of cultures and nationalities. The area is well-connected to other parts of Dubai, with easy access to major highways and public transportation. To buy an apartment in JVC, the price of studio apartments has averaged AED 447,000. For 1- and 2-bed apartments in JVC, the average sales price has been AED 723,000 and AED 1,117,000, respectively. DUBAI SILICON OASIS – DSO Dubai Silicon Oasis is ranked second on the list of top areas to buy affordable apartments in Dubai. With an ROI of 7.52% and an average sales price of AED 636,000, the eco-friendly area is home to various types of properties in the UAE, including apartments and villas. Apartments in Dubai Silicon Oasis are popular for their modern and spacious architecture. The area also offers shared amenities, including swimming pools, gyms, parks and recreational areas. The community spans an area of 7.2 square kilometres and is located at the intersection of Sheikh Zayed Road and Dubai-Al-Ain Road. The sales price for studio apartments in Dubai Silicon Oasis has averaged AED 344,000. The price for 1-bed apartments in the area has averaged AED 480,000 and 2-bed apartments have an average sales price of AED 863,000. JUMEIRAH LAKE TOWERS – JLT Jumeirah Lake Towers ranks third on the list of top areas to buy non-luxury apartments in Dubai. JLT is a popular residential and commercial development located adjacent to Dubai Marina. With an ROI of 7.9% and an average sales price of AED 1,240,000, JLT is a bustling community offering various amenities and convenient access to the Emirate’s top attractions. The apartments available for sale in JLT come in a variety of sizes, with options to suit every class’s needs. The community is also home to a range of restaurants and retail outlets, making it easy to enjoy a day out without leaving the neighbourhood. The price of studio apartments in JLT has averaged AED 514,000. While for 1- and 2-bed apartments, the prices have averaged AED 883,000 and AED 1,423,000, respectively. INTERNATIONAL CITY Ranked fourth on the list of Dubai’s affordable areas to buy apartments, International City is an excellent choice for those seeking a convenient and modern lifestyle. The district covers an area of 8 square kilometres. With an ROI of 9.19% and an average price of AED 358,000, International City is a country-themed cluster of businesses, residences, and tourist attractions. International City is located in the Al Warsan region of the Emirate, with close proximity to Silicon Oasis, Dubai Safari Park and Academic City. The apartments for sale in International City have different prices. The sales price of studio apartments in International City has averaged AED 230,000. For 1-bed apartments, the price has averaged AED 330,000, and for 2-bed apartments, it is AED 699,000. DUBAI RESIDENCE COMPLEX Ranked fifth on the list of top areas to buy affordable apartments in Dubai, Dubai Residence Complex enjoys a promising location with access to Al AIn Road and Sheikh Zayed Road. The development has an ROI of 6.61% and an average price of AED 568,000. In addition to libraries, parks, hotels, mosques and healthcare facilities, Dubai Residence Complex offers a wide range of commercial and residential properties for sale. There are many affordable apartments available at Dubai Residence Complex, including studio, 1- and 2-bed apartments. The sales price for studio apartments in Dubai Residence Complex has averaged AED 313,000. The average prices for 1- and 2-bed apartments are AED 496,000 and AED 653,000, respectively. Related articles:1. The Importance of a mortgage pre-approval in Dubai’s real estate market2. Things to Consider When Purchasing Mortgage Protection Insurance in Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Things to Consider When Purchasing Mortgage Protection Insurance in Dubai

If you are buying a property in the UAE you will also need to take out mortgage protection insurance. Life insurance and building insurance are mandatory when taking out a mortgage in the UAE. Life insurance or Mortgage Protection insurance as it is sometimes known is there to cover your repayments in case you were to pass away. Building insurance covers the structure of the building. They are two separate products and you will need both. In addition, there are other insurance options you may need or wish to consider. Here is a list of considerations to bear in mind when insuring yourself, your property, and your mortgage. 1) Life insurance is compulsory for anyone taking out a mortgage in the UAE Mortgage protection or life insurance covers your mortgage in the event of your death. This is another cost you will need to factor into the mortgage process. Some banks will ask for you to make the mortgage insurance payment up front, while others will add it to the cost of your monthly repayment, and some may raise the mortgage interest rate you have been offered to cover the cost. Make sure you find out from your lender how your mortgage insurance will be paid for so you can factor in these costs. The cost of your insurance will depend on your age and whether you smoke. The price will rise if you are over 40, and or you are a smoker. As with any other insurance such as health insurance, you will need to disclose any pre-existing health conditions, or else any claim may be denied to your family down the line. 2) If you want to save yourself some money, research the market and take out life insurance independently of the bank your mortgage is with. However, not all banks will accept mortgage insurance from a third party. Banks are within their right to insist you take their mortgage protection. Asking your mortgage broker about mortgage protection or life insurance rules is a good thing to do so you know where you stand. 3) Building insurance is also compulsory. Building insurance covers the structure of your home (this means bricks, concrete, and roofs) against accidental damage, fire, natural disasters, or water damage. Building insurance claims are not calculated on the property purchase price or current market valuation, but rather on what it would cost to rebuild. You can expect to pay 0.02-0.07% of the amount you are insured to annually in building insurance premiums. 4) Contents and personal belongings insurance are not compulsory but you may wish to consider them for your peace of mind. Contents and personal belongings insurance are two different things, though you may find an insurance product that covers them both. Make sure you are aware of the definitions and what is covered in both contents and personal belongings insurance so you are clear on what is covered. Contents insurance covers household items, such as furniture, kitchen appliances, interior decorations, and home electronics, against accidental damage, fire, natural disaster, and theft. The insurance amount should amount to the total value of items in the property, or the amount necessary to replace the items if they were all lost. Personal belongings insurance covers items you would typically take out of your home. It can include watches, jewelry, laptops, and mobile phones. In both the case of contents and personal belongings insurance, shop around to find a great deal. Using a comparison site will help you find the right insurance product at a reasonable cost per month or per year. 5) Are you buying off the plan? If so then you will usually pay a deposit before the completion of the property. Be mindful that there is no formal insurance scheme to protect off-plan buyers. However, your money will be held by a third party and not accessible by the developer before completion. Make sure you buy a property from a reputable developer. If you’re wondering how much you could borrow towards the cost of your new property, use our mortgage calculator. This will give you an idea of how much your monthly mortgage repayments would be. Just remember to factor in your insurance liabilities. Related Articles:1. Moving to Dubai: A guide for expats2. What Impact Does My Credit Score Have on My Mortgage in the UAE

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The 11 Best Family-Friendly Communities in Dubai

When looking for an ideal family home, the proximity of kindergartens, schools, hospitals, supermarkets and other facilities is an important factor. The availability of entertainment centers and outdoor parks, where residents can relax and play sports on the territory of the residential development also plays a significant role. We have prepared a list of the TOP family-orientated communities in Dubai in order to help expats choose the most convenient option for buying or renting real estate. TOP Family-Friendly Communities in Dubai This section contains the best family-friendly villa communities in Dubai. All the proposed neighbourhoods are situated near a well-developed infrastructure of schools, kindergartens, hospitals, supermarkets and grocery stores. The most expensive option for the sale of villas is Emirates Hills with the cheapest community being Jumeirah Lake Towers. Emirates Hills The developer of the luxury gated community of Emirates Hills, which is a part of the Emirates Living Project, is Emaar Properties. The residential development is based on the concept of Beverly Hills in the USA. Moreover, Emirates Hills is one of the first freehold real estate areas in Dubai, where expats can buy the property at 100% ownership. According to the 2021 Annual Market Report by Bayut, this neighbourhood is amongst one of the best communities in the city to purchase villas. The residential development offers 2BR-7BR villas for sale and 5BR-7BR villas for rent. The starting price for 2BR villas for sale is AED 18,000,000. The minimum price for 5BR villas for rent constitutes AED 1,400,000 per year. The amenities of Emirates Hills include swimming pools, parking places, green spaces, pet parks, children’s playgrounds, BBQ areas and round-the-clock security. The community is also home to an 18-hole premium-class golf course called Montgomerie Golf Club Dubai. Since this is a closed community, there are no bus stops or metro stations within the site. The nearest transport facilities are the Dubai Marina metro station and marina bus stops, which are both a 10-minute drive away by car. We recommended having your own car for more comfortable movement in and around the area. Umm Suqeim Umm Suqeim is one of the oldest communities in Dubai. The neighbourhood comprises five sub-communities: Umm Suqeim 1, Umm Suqeim 2, Umm Suqeim 3, Umm Suqeim Road and Madinat Jumeirah Living. The area offers residents a variety of facilities including cafes, stores, groceries, bakeries, supermarkets, mosques and pharmacies. The area is in close proximity to educational and medical institutions, public transport stops, as well as the Umm Suqeim Park and beaches. In addition, Umm Suqeim is home to Kite Beach, where residents can find a wide variety of watersports and beach activities. he neighbourhood offers 4BR-6BR villas for sale and 3BR-7BR villas to rent. The starting price for 4BR villas for sale constitutes AED 5,900,000 and AED 115,000 per year for 3-bedroom villas to rent. Many villas have private backyards and separate maids’ rooms. Some villas have swimming pools and underground parking spaces as well. Al Barari Al Barari is a beautiful gated residential neighbourhood in the centre of Dubai, which consists of two phases. Phase one includes The Nest, Seventh Heaven, Ashjar, The Reserve and The Residences. Phase two comprises a resort hotel, retail stores, medical facilities and several additional residential developments. Residents of Al Barari have access to premium amenities such as the Body Language health club, the famous gourmet restaurant The Farm, and Heart & Soul spa. This area is also one of the greenest neighbourhoods in Dubai due to its numerous green spaces, natural lakes and vast lush gardens. Al Barari community offers luxurious 4BR-7BR villas for sale and to rent. The minimum price for 4BR villas for sale constitutes AED 3,090,000 and the starting price for 4BR villas for rent is AED 230,000 per year. Silicon Oasis Dubai Silicon Oasis is a community in the centre of Dubai, with a total area of 7,200,000 sq. m. It is also a free trade zone. Most residential buildings have dedicated parking spaces and there are lots of car parking around the community. Amenities of Silicon Oasis include grocery stores, nurseries, restaurants, supermarkets, a Kids Jungle activity centre and a technology park with several smart devices such as solar-powered benches and a smart lighting system. Dubai Silicon Oasis neighbourhood offers 3 to 6-bedroom villas for sale and to rent. The minimum selling price for a 3BR villa is AED 2,900,000. The minimum annual rental price is AED 130,000 for a 4BR villa and from AED 137,000 for a 3BR villa. Dubai Hills Estate Dubai Hills Estate is the first phase of the Mohammed Bin Rashid City and a joint project of Meraas Holding and Emaar Properties. The total area of the neighbourhood is a colossal 20,000,000 sq. ft. The community is the green heart of Dubai due to its numerous lush green zones. Residents of Dubai Hills Estate have access to various amenities such as schools, hotels, hospitals, Dubai Hills Park, open leisure spaces, Dubai Hills Mall and a 33 miles bicycle route. Moreover, the residential area is one of the most popular golf communities in Dubai and home to an 18-hole championship golf course – Dubai Hills Golf Club. The neighbourhood offers 3 to 7-bedroom villas for sale and to rent. Starting prices for 3BR villas for sale constitutes AED 2,400,000 and AED 125,000 to rent per year. Mirdif The family-friendly suburban community of Mirdif is situated in close proximity to Dubai International Airport. The neighbourhood includes four sub-communities: Uptown Mirdif, Mirdif Tulip, Ghoroob and Shurooq. Shurooq area is a freehold zone to foreign nationals. Each of the sub-communities offers a variety of amenities including parks, pet shops, grocery stores, beauty salons, restaurants and sports facilities. Residents of Mirdif also have fast and easy access to the large facility of Mushrif Park. The residential community offers luxury 3 to 6-bedroom villas for sale and 2 to 7-bedroom villas to rent. The starting price for a 3-bedroom villa in Mirdif constitutes AED 2,200,000 and the minimum price for 2BR villas to rent

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How do I calculate my mortgage interest payment?

What is Loan Interest? Loan interest is the amount that you pay to a lender in exchange for them lending you money. It is essentially a fee charged for the privilege of borrowing money, and it is typically paid to the lender on a monthly basis. The actual amount of interest that you pay will depend on the size of your loan, the interest rate, and the length of the loan term. For example, if you borrow AED 100 at an interest rate of 10%, you will owe AED 110 to the lender at the end of the loan term. Factors that may have an impact on interest rates: Here are some of the factors that may affect your mortgage interest rate: Loan Term: The loan term is the length of time in which you have to repay the loan. Loan terms can range from a few months to several years. The terms of most loans are based on the borrower’s ability to repay the loan. The interest rate, the loan amount, and the repayment schedule all play a role in determining the loan term. Lenders also consider the type of loan, the purpose of the loan, and the collateral involved. The loan term is an important factor in determining the overall cost of the loan. Short-term loans tend to have higher interest rates than long-term loans, but they may also be easier to qualify for. It’s important to compare all of these factors before choosing a loan term. Credit History: Your credit history is one of the major factors in determining your mortgage interest rate. It can help you qualify for a loan and get a lower interest rate than borrowers with bad credit. Lenders will look at your payment history, debt-to-income ratio, and other financial indicators to determine whether or not you are a good credit risk. A good credit history can help you get a better mortgage interest rate, and it can also give lenders the confidence to lend you money. Down Payment: Making a down payment on your loan can significantly reduce your interest rate. Generally, the larger the down payment you make, the lower your interest rate will be. This is because lenders view borrowers who make larger down payments as being less likely to default on their loans. It’s important to know that some mortgages require a certain minimum down payment. Loan amount: The loan amount is the amount of money you borrow from a lender. The loan amount has a direct impact on your interest rate, as lenders may charge higher interest rates for larger loans. Additionally, some mortgages require borrowers to have a certain minimum loan amount to qualify. Overall, understanding how mortgage interest works and the factors that affect it can help you make an informed decision when shopping for a home loan. Researching and comparing different lenders will help ensure that you get the best interest rate possible on your mortgage. Interest rate: Interest rate is the rate at which borrowed money accrues interest, expressed as a percentage of the principal and can range from 6-36%. The interest rate is used to calculate the cost of borrowing money. In addition, your loan term can impact your interest rate. Short-term loans tend to have higher interest rates than long-term loans, so it’s important to compare terms before choosing a loan product. Finally, making a larger down payment on your loan can help reduce your interest rate and lower the overall cost of your loan. There are many factors that affect interest rates, including inflation, economic growth, and monetary policy. How do you calculate loan interest? The amount of interest you will owe on loan is determined by the interest rate, the loan amount, and the loan term. To calculate your total loan interest, you need to multiply the total borrowed amount by the interest rate and then divide it by 365 (depending on your payment frequency). For example, if you borrow AED 1000 from a lender at 10% interest for 12 months, your total loan interest would be AED 100. You can use online calculators to help you determine how much interest you will owe on loan. Related articles:1. What you need to know about mandatory life insurance for your UAE home loan2. Best Waterfront Living Communities In Dubai Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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Are Post-Handover Payment Plans: Risky for Buyers?

In the age of rising property prices, buyers are increasingly turning to post-handover payment plans, which is labeled as a good shortcut. Developers offer attractive terms, making it an excellent avenue for those who can’t afford to pay up-front for the property they want. However, post-handover payment plans come with a certain degree of risk that must be considered before entering such an agreement. At Capital Zone Mortgage Broker, we understand that post-handover payment plans are a popular option for those looking to purchase a home, but as a buyer, one must be aware of the inherent associated risks. Our property advisors can provide the necessary information to ensure your post-handover payment plan is a safe and secure investment. What are post-handover payment plans? Post-handover payment plans mean that buyers have to plan ahead and be thoughtful about their spending. It is also important to note that they are unsuitable for every buyer due to their risks weighing more than traditional payment methods. Therefore, buyers should always be diligent before entering such an agreement and ensure they understand the terms and conditions involved. Post-payment plans are a valuable financial tool that can help people purchase a property, mobile phone, or even groceries when the money simply isn’t available in lump sum. In a post-payment plan, the individual makes a series of payments over time until the property’s worth is fully paid for. This payment scheme can be shared between two parties, such as in the case of an employer and employee or between banks and buyers. What makes Post-Handover Payment Plans a Risky Affair? Post-handover payment plans can be problematic for buyers. The main risk is that buyers don’t know if the project will be completed on time or if the quality of the end product matches the promise made by the developer prior to signing the contract. In addition, it can be difficult to cover any losses that may occur due to delays in completion or defects in construction. Buyers that avail of such plans typically make payments upon receipt of keys and possession of the house. Such payment structures must be analysed sternly before arriving at a decision. Financial advisors often recommend traditional financing options such as full pre-payment at closing, or staggered payments by milestones over a shorter period of time. This ensures that your investment stays secure. That being said, post-handover payment plans aren’t all bad. Here’s a list of its merits and demerits to help you out. Reasons to Choose Post-Handover Payment Plans Reasons to Run the Other Way Conclusion In a nutshell, post-handover payment plans can be a great option for buyers who are looking for more flexible financing arrangements. However, it is important to carefully consider the risks before entering into such an agreement and ensure that you understand all the terms and conditions involved. Related Articles:1. Buyout Loans in UAE and how they work2. Reasons your Mortgage Application is Rejected Stay tuned for more fascinating insights on UAE Mortgage trends:Website | Linkedin | Instagram | Facebook

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