Mortgage Calculation

What is a Mortgage? (Mortgage Icon) 

Since you probably don't have hundreds of thousands of dollars lying around, a mortgage is a loan that enables you to cover the cost of a home. You pay back the loan over the course of years or even decades. Consider it the biggest, longest, most life-changing IOU you'll ever give out!

How can the Mortgage Calculator help me? ( I will re-text this once they have chosen a calculator)

Our quick and easy Mortgage Calculator will help you to work out your monthly mortgage payments. Simply enter the property value, the term over which you intend to pay it off, the amount of down payment and the interest rate. You may be able to afford more (or less) depending on your down payment and/or the purchase price.

Our Mortgage Calculator will give you the total monthly payment, specifying both interest and payment towards the capital loan amount. Please note that these figures are only a guide based on the provided information. After you have submitted your details, we will give you a call to determine the best offer from a specific lender that is suitable to your conditions.

Whether you’re looking to get your home loan in Abu Dhabi or elsewhere in the UAE, Republik Real Estate management LLC is here to help at every moment.

 

Who is eligible for a mortgage?

As always there is a criteria for the approval for your mortgage:

  • Age: The applicant needs to be of a certain age to be eligible for the loan. In uae that age is around max 65 years of age or 21 years of minimum age and loans can be approved for up to 25 years. If however, you are self-employed the age can be extended to 75 Years.

  • Employment: The banks require the applicant to be employed or earning income from other sources order to be eligible for the loan. This rule is especially applicable for Expats that are residing in the UAE.

  • Income: If the applicant intends to avail a home loan from a certain bank, they should fulfil the minimum income criteria of the bank. The applicant should earn a minimum income. This is usually decided after the amount of loan inquired for is applied to the bank.

  • Nationality: Some banks only grant loans to UAE nationals so its important to check beforehand if the loan is available both for expats and UAE nationals

  • Salary transfer account: Some banks need the applicant to transfer their salary accounts to the bank in order to avail a loan.

 

What is the down payment I have to make and how much is the borrowing limit?

 

Good news if you are a first time buyer but don’t panic if you are not! The table below summarizes the % of down payment allowed depending on the price of the property:



Type of Property  

Min Down Payment (Expat)

Min Down Payment  (Nationals)

Built – 1st  property- under AED 5m

25%

20%

Built – 1st property – over AED 5m

40%

35%

Built – 2nd + property

40%

35%

Off-Plan

50%

50%

 

Type of Property  

Max Borrowing Amount (Expat)

Max Borrowing Amount (Nationals)

Built – 1st  property- under AED 5m

75%

80%

Built – 1st property – over AED 5m

60%

65%

Built – 2nd + property

60%

65%

Off-Plan

50%

50%

 

What are the Interest rates I can expect in UAE?

Typical rates are between 3.49% to 7%. The benchmark interest rate in the United Arab Emirates was last recorded at 2.25 percent. Interest Rate in the United Arab Emirates averaged 1.32 percent from 2007 until 2017, reaching an all time high of 4.75 percent in November of 2007.

 

What are the processing and valuation fees?

Below is an example of the charges. They may vary given the bank and the type of mortgage applied for:

  • Bank arrangement fee – from 0% to 1% of the loan amount

  • Valuation fee – ranges from AED 2,500.00 – 3,500.00

  • Dubai Land Department property transfer fee – 4% of the property sale price

  • Dubai Land Department mortgage registration fee – 0.25% of the mortgage amount

  • Dubai Land Department title deed fee of AED 540

  • Trustee Administration Fee of AED 4,000