Mortgage Assistance

Whether you're purchasing your first home in UAE or relocating to a new property in a different area, the mortgage process can often seem daunting. That’s where WeSetupBusiness comes in. Our dedicated mortgage advisors are here to assist you every step of the way. With years of experience and deep expertise, we provide tailored mortgage solutions for both residents and expats. We pride ourselves on our strong partnerships with leading banks and lenders across UAE, enabling us to offer a wide range of options that align with your financial situation and property goals. Once you share your requirements with us, our advisors will guide you through the entire mortgage process, ensuring clarity and attention to every detail.

From understanding the various mortgage types to securing the best rates, our team is committed to making your home-buying journey seamless and stress-free. We offer personalized service, taking the time to understand your specific needs and preferences, so we can provide valuable advice that helps you secure your dream home. Trust WeSetupBusiness to make your real estate journey in UAE a successful and positive experience.

Mortgage Financing in the UAE

Mortgage financing is becoming increasingly popular globally, enabling individuals with stable incomes to purchase their desired properties through manageable installment payments. This option not only makes attractive properties more accessible but also helps you avoid the long-term costs of renting, which doesn’t build equity over time. In the UAE, you will find expert guidance on mortgage rates, eligibility criteria, loan conditions, early repayment options, and other key factors that will help you on your path to homeownership in UAE.

Conventional vs. Islamic Mortgages

A conventional mortgage involves a financial institution lending you money, which you repay along with interest. This interest serves as profit for the lender. The mortgage consists of a principal amount and the interest accrued on it. Typically, you have a repayment period of up to 25 years, which is why these loans are often referred to as repayment loans.

In contrast, an Islamic mortgage adheres to Sharia law, which prohibits interest on loans. Instead, the lender purchases the property on your behalf and then leases it back to you for profit. One significant advantage of Sharia-compliant mortgages in the UAE is that you won’t face interest payments or late fees, although the bank may charge certain fees.

Fixed vs. Variable Interest Rates

When considering property mortgages in the UAE, homebuyers have various options to choose from.

Fixed-Rate Mortgage

A fixed-rate mortgage locks in an interest rate for the entire duration of the loan. This allows you to know exactly how much you will pay throughout the mortgage term. Depending on your agreement, you might be able to pay off a fixed-rate mortgage early without penalties, or you may incur a breakage cost for early repayment.

Variable-Rate Mortgage

A variable-rate mortgage is another option available to expats and locals in the UAE. The interest rate on this type of mortgage fluctuates, meaning your monthly payments can change. If rates decrease, your payments go down; if they rise, your payments increase. While this option offers flexibility, it also introduces some uncertainty. Similar to fixed-rate mortgages, variable-rate mortgages can be open or closed, and you can switch to a fixed-rate mortgage at any time.

Home Loan to Value Ratio

For UAE nationals, the minimum down payment is 15%, allowing for an 85% mortgage on properties valued up to AED 5 million. For properties exceeding AED 5 million, the down payment increases to 30%, resulting in a 70% loan-to-value ratio.

Maximum Home Loan to Value Ratio for Expats

Non-residents can secure a mortgage of up to 80% with a 20% down payment for properties priced at AED 5 million or less. For properties above this amount, the loan-to-value ratio decreases to 65%, requiring a 35% down payment.

For off-plan properties in the UAE, buyers must make a 50% down payment, resulting in a loan-to-value ratio of 50%.