There are few hurdles and complications to get your own property in UAE and one is the financial issue. Most of the people don’t have any idea and find it very difficult to get their own home because they think it is impossible. You even have to suffer a lot to manage daily activities, how come a home would be possible? This is practically possible and not as difficult as most of us have thought. One of the best ways to make this dream into reality is through the best mortgage loan in UAE. The next question is from where we can get it and before that what is a mortgage loan?
Let me clear you one thing about a mortgage loan. It is a simple loan that one can take from a bank or any other lending institution to purchase a home. The system of providing loans varies from one bank to another because they have different packages and schemes. But some of the requirements are same as:
- The first and most important requirement is quite difficult because it makes a strong bonding between the lender and the borrower. But it is very necessary for the lender as well as for the borrower of the loan because both parties are going to do a written and signed agreement. This would be at least 10 to 25years till the last installment is paid.
- If you are in contract with the referral company using a bank through which you are applying for a loan in UAE then it would be an extra edge for you. When someone gives you a package for your loan scheme, they will demand a bank statement of your account for the past 3 months.
- Another important but simple requirement is your nationality proof in the form of a passport if you are an outsider. This condition is the same for all kinds of banks and you have to provide a valid passport as proof of your identity.
Mortgage loan: Residents and Non-residents
Yes, it is true that banks in the UAE provide mortgage loans to locals and expatriates at different terms and conditions. This can vary with respect to the loan amount or level of interest rate but the mode of repayment based on two major types as:
- Variable repayment method
- Fixed repayment method
If we talk about the first one, it means you can extend or reduce the limit of loan and can be renewed according to your requirements. But the consensus between both parties – lender, and the borrower is a must thing. This repayment method is beneficial for commercial purposes if you are looking for a business purpose but you can use it for home tasks as well. The interest rate on this loan varies according to the services and also varies from bank to bank. There is no fixed time limit and no one is bound to repay the complete amount of loan within a time frame but the interest rate would be up and down according to the time passing by.
For the best home loan for non-residents in UAE, I would prefer to fix the repayment method because this is not a type of loan that should hang for a longer time period. You will get into stress and also in a financial loss.
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