5 tips to manage a home loan in UAE

Most of the people are outsiders in UAE and some of them work in the reputed organization while some doing odd jobs. But the point is everyone wants a settlement in this region having his/her own home. This desire isn’t too much but you have to work smartly to make this dream come true. The best option is a home loan for expatriates through Dubai banks. Yes, it’s possible to have your own home but the only way is to work with smart steps.

For all expatriates in UAE, we have managed some of the important things to know before going to apply for a home loan. If we have a look at the highlights, these are the following:

  • What is most important is your credit history. We all have an account in a bank in UAE so try to maintain a good credit history and score by paying your all dues on time. Why it is important? It’s not for loan only but you can get many other offers at a reasonable interest rate holding a good credit score.
  • There are three types of lenders – conventional and Islamic banks, private firms or individuals provide some loan on a fixed interest rate. But the point is which option is most suitable. For that, you need to compare lenders for interest rates and other features but we recommend you to approach a bank in Dubai for loan offers due to secured systems. These are highly professional in providing some unique and excellent offers according to the requirements of customers.
  • The third most important point is the overall structure of a package. Keep one thing in your mind that the services and costs vary from lender to lender. It must be noted with great care to consider all the costs, fees, and charges on your loan so that to manage at the time of repayment.
  • Suppose you are doing a job in a reputed company even then you need to check your credit and debit at least for a year. It may help you to assess your finances and evaluate your ability to repay it with a fixed time period.
  • This is a modern era and you have to work according to the latest systems. It will help you to get important information and the latest updates. So it’s a suggestion for everyone to be updated with all pertinent information before applying for a home loan. It not only improves the chances of your loan but also you will get some better opportunities. This thing will also increase your chances of loan to get approved and can also help you secure a loan at a lower rate of interest.

How to maintain a good credit history?

You are looking for banking services and particularly loan option, you must have a clear idea about your credit score. My friend this is really important from taking a loan till repayment of a loan. While applying for a home loan, there are many points as highlighted above to be considered in your mind so that to complete your package with a perfect ending. For example, it is a suggestion for all of you to take into consideration factors like your credit score, interest rate, and other fees and charges before making any final decision.

You can check the eligibility criteria of a lender and after examining these criteria, you can make sure that what works best for you. You can save a lot of effort and money as well and this also prevents you from making mistakes such as selecting the wrong lender. Most of the people don’t have any idea about opting for the lender and what should be the repayment method. So this care saves you to choose an inconvenient tenor or borrowing more than you need.

Moving back towards the credit score, it is actually a representation of your credibility of we can say that your creditworthiness. The evaluation is based on your history of credit repayment and time management. This score ranges from 300-900 and a score above 750 is considered ideal which can provide you with maximum benefits. While on the other hand, a lower credit score signifies bad debt management. In this case, you may don’t get some best packages and may result in your loan application being rejected. Well, even if someone agrees to pay you a loan, it must be with a higher interest rate being applied on your loan.

The only thing you can do is to maintain your credit. It is very easy to manage this thing but due to time mismanagement, most of the investors get into bad credit history. You can maintain a good credit score by simply paying your dues on time, so always keep your deadlines into the top of your head all the time.

Choose the automatic process:

Maintaining a credit score for a home loan is very important for all of you in UAE, whether you are a national or a resident. The point is we are always busy with our routine based tasks that we forgot to make our payment within a fixed time period. Whatever the excuses are, for a non resident home loan your credit score must be above average. Well, there is one way to fix this problem and it’s a good way of ensuring by automating your payments. You can get some digital or internet banking services which will automatically make your payments.

There is another way which is pretty important and that is you can get rid of different credit cards. By reducing the number of credit cards you are using, the load will automatically be reduced. This is the best way to ensuring that you continue to use your old credit card with a good credit history. Most of the lenders provide you some important tips like to bind yourself with using your card. If you want to get a good credit history, it is very important that you never exceed more than 30% of credit utilization.

Tips for Non-resident Home Loan

In this article is all about home loan options which are highly beneficial for individuals and most importantly for the families with a tag of expatriates in UAE. If you are on a journey of a couple of children to raise, we suggest you plan a home loan so that to get your own home after a few years. Where one should go for such services? For sure banks in Dubai provide different types of packages regarding home loan options including:

  • Home loans for residents
  • Home loan for non-residents

Is there any difference between these two packages? Yes banks in UAE provide and facilitate both types of customers under different terms and conditions. This is pretty similar to the status of a client. The non-resident home loans would be difficult but not impossible, that’s’ why we are here to discuss a few important things.

For the last two or three years, such kinds of services get immense popularity among people in Dubai due to the increasing number of expatriates. To attract the attention of such potential account holders, banks are busy in the marketing of attractive offers and policies. In the race to introduce such packages, banks, as well as private corporate groups, are also involved at the private level.

If you are an expat in Dubai, it is a must thing that one should do consider on an urgent basis. Such options are rare and come after a long time, so to getting your own residence plan a home loan or a mortgage loan without wasting time. This is the most vital activity from your side generally in your troublesome and intense time but it will give you relief in your future days. Keep one thing in your mind that best plans do not rely upon the time and circumstances because you can’t get anything big through a comfort zone. There are always a few hurdles and logical decisions behind a successful plan like an investment plan, business plan or a home loan plan.

How we can get a home loan?

There are two major sources to get a home loan in UAE is:

  1. Private or Public sector banks
  2. Private lending firms

For a home loan, we would suggest you approach a bank in UAE because this is a reliable source and even secured one. You first need to understand the home loan eligibility UAE to design some time-bound activities and never get late for such planning. Let me explain the criteria.

  • One must have a good credit history. It means proper working with banks in the past such as your previous pending’s should be cleared.
  • You need to have a salary slip.
  • You need to provide a passport as your proof of nationality.

The next point is the selection of a lender and as we have discussed above UAE banks are best and reliable for such kinds of services. You can choose a private bank with an excellent loan history. Kindly read all terms and conditions from a specific lender so that to manage your repayments.

2 ideal ways for financing a mortgage loan

What is a mortgage loan? Most of the people in the UAE are unaware of this term because they don’t have any idea about the services of banking which can be helpful for them. This is a kind of loan which can be taken on a property to support a home or any other purpose. The amount of loan being provided by the bank is only possible in which one can hand over a property which should be almost equal amount to the loan provided. Although there are few technicalities these can be resolved after proper working and we can make it purposeful for both parties. Only you need to get the basic idea about property mortgage loans in Dubai to take an initiative.

You need to consider a few things like:

  • How much interest rate is charged on a loan amount?
  • What is the method of repayment?
  • How much loan amount can be taken?
  • How much time is required to repay the loan amount?

Both parties, the lender which is a bank in most of the cases and a borrower are bound to sign a written agreement with all terms and conditions. They can negotiate for all things before signing the papers. If you are an expat in UAE, then be prepared mentally that you have to walk through hard but affordable conditions while on the other hand if you are a resident, then things will be a bit smoother.

Coming back towards our main point which is related to take a loan amount in two different ways. You can choose a package according to the repayment method as:

  • Mortgage loan through a fixed time period
  • Mortgage loan through the variable time period

A loan with a fixed time period:

In most of the cases, we see that people are interested in taking a domestic loan for home purposes. The best way to choose this option is through a mortgage loan with a fixed time period. Keep one thing in your mind that mortgage loan best rates are not easy to handle and sometimes you can get into a situation of the extra interest rate. You are bound to complete all the installments within that time period otherwise your property can be seized by the lender.

A loan with the variable time period:

There is another repayment option and it is designed for a commercial mortgage which is also in high demand by different investors for initiating a business setup. Although the time period is not a restriction anymore the interest rate on the actual loan amount is higher than the fixed repayment option. To cater to the needs of such kind of clients, Dubai Banks are providing some of the greatest and cheapest offers with the lowest interest rates as well.

Conclusion:

The banking system in the UAE has the capacity to accommodate all kinds of customers in a perfect way. They can provide maximum benefits and easy conditions to manage your domestic tasks. For the best offer, you can visit the official site of a bank.

What is a mortgage loan?

Very simple, a loan that is used for the home-based purpose can be called as a mortgage loan or home loan in Dubai. Its working is but different irrespective of other loans. Like for an investment loan, you don’t need to provide a property as a security to your lender to get the loan amount but you have to follow this system in a mortgage system.
The actual working is something like, a borrower and a lender try to make a consensus through an agreement. The borrower put a loan plan in front of a lender and if two parties agreed the loan is provided through a written agreement. The two most important conditions are:

Who is the best lender? The borrower needs to mortgagee a property that would exactly the amount of loan being provided by a lender which could be a bank or any other financial firm. For such types of services, we would recommend you’re to approach a bank in UAE because they are more reliable than any other lending institution. You can negotiate in a better way and it would be an extra edge if you could get a loan from your nearest bank.

Credit history – The second most important point of agreement for both parties is the interest rate system and repayment method of the loan amount. If you have a good credit history, then any bank in UAE will be agreed to provide your loan amount at a very low-interest rate while on the other hand if you have a bad credit history then you will be judged on your past record.

Repayment of mortgage loan

There are two systems to repay the loan – flat rate system and reduce the rating system. The first one is most suitable for domestic and low budget customers. We can take an example like a loan of AED 24,000 taken for a period of 12 months, which means payments of AED 2,000 every month and this the actual amount. No one will only agree on the actual amount and you have to pay some interest rate as well. If someone wants to take the flat-rate system, add to this interest at 5%, which equals AED 1,050 per month with interest, for 12 months. This would be an extra amount like AED 600 per month. Now add this interest rate amount to your actual monthly payment. This would be the total installment for a month.

While on the other hand reducing the rate of interest on a loan with the same amount taken from a bank or any other lending institution is totally a different thing. Yes, you have to pay the loan amount but with a variant interest rate and there one isn’t bound with a time limit. If we have a look at the system, after each installment, the total amount of loan which can be called the principal amount reduces according to the payment option.

For the mortgage loans for expats in Dubai. we would suggest you approach a bank for the best services and affordable rates.

Essential queries about SME banking

Which area is most suitable for an investment plan can’t be explained but through an investment bank and with the help of a financial expert. Here we have done a little work to get more and clear information about business banking in Dubai and what are the major duties and responsibilities of such kind of banking. Also, we will try to explain the working and liabilities performed by the financial experts on behalf of a bank.

To understand the investment sector in the UAE, you must have to approach Dubai banks. So as we talk with the wealth managers who were working as an SME advisor in different banks. The selection of these experts was based on their long term experiences in Dubai. We had conducted some long sessions through subjective interviews regarding business opportunities so that readers could get real benefits.

How to prioritize the things for an investment plan?

First of all, we asked our financial experts that how we should prioritize the things to make a strong and perfect investment plan. What do you see as your top priority when you are doing some work on a wealth management project or finding a solution for an investment plan?

The answer was very simple and straight forward that we always focused on two major things –

  • What is your input?
  • How much you would expect at the output end?

If you are clear with these two things, you can get some strong vibes to understand the main concern which we can call as productivity. The second most important point the diversification in your project. Your main focus would make your business plan more diversified so that to enhance your profit margin. If we are dealing with only one investor and he/she is willing to invest in more than one business, then we divide the investment amount into different portions and invest it within diverse fields. Make sure that we can invest a small portion of the amount in one business and another small portion in another business. This can really help you in the future.

SME industry in UAE

We asked the second question to our professional expert which was related to SME opportunities in UAE. From an SME’s point of view, we have already established a well informed and productive small business industry in Dubai. One can get the best option through small contracts and generate revenue in a simple and smooth way without taking any risk. There is a number of areas such as:

  • Development and Infrastructure sector
  • Trading sector including stock exchanges and Forex trading
  • Hotel and tourism sector

These areas are fairly productive not only for locals but also for international investors to get maximum profit.

To get the best services, you have to choose the best SME bank account from the list of all the banks in UAE and we will suggest you approach Mashreq SME banking in the UAE. For further details and the latest information, you can visit the official site of the bank.

The best interest rate for a mortgage loan

If you live in the UAE and doing a job, ever think about having your own home that you can call home sweet home and hare with your beloved ones. Well, most people don’t because they always busy in their jobs or businesses and find it pretty much difficult to have a home due to a large number of expenses every month. The busy and lavish lifestyle in the UAE is clearly much expensive than any other region in the world. The point is if someone lives in a flat on rent and paying a handsome amount every month then why not an installment for mortgage loans in UAE. You can easily get the best loan services from any private bank or through a financial institution working with a reputed history.

This article is all about the banking sector and interest rate being charged on a loan scheme. There are two possible ways to approach a bank – first you can visit any branch of a bank or first check the e-banking options available through the official website of a certain bank. We suggest you read all terms and conditions about specific packages from a bank through its official portal and then call the relationship to manage for further queries. This way you will be able to compare the different banking options about your required loan package. Suppose you are looking for a mortgage loan, banks will vary in their packages while considering interest rate.

There are two options considering interest rate on a mortgage loan in UAE is:

  • Interest rate through conventional banking
  • Interest-free Islamic banking

Which loan option is best for Non-UAE Residents?

No doubt the banking sector is highly professional and up to the mark while providing excellent loan packages according to the needs of a borrower. But it is really hard to manage things if you will not pursue this agreement in a proper and responsible way. Major problems come from the interest rate that will increase if one would not be able to repay the installment on time. So what we do? You can completely skip this track by choosing Islamic banking and for the majority of the middle-class expatriates, it would be the most suitable choice.

While on the other hand conventional banking can also accommodate you through a suitable loan package with maximum ease. You can avail easy installment method with a minimum interest rate level and manage it through a fixed-rate repayment method. There is a difference between an average borrower and a high net-worth individual so maybe this formula will work for both:

  • For High net-worth individuals – Mortgage loan through variable-rate repayment method
  • For an average borrower – mortgage loan through fixed-rate repayment method

Both repayment methods are suitable to avail home loans for Non-UAE residents but the Islamic loan option is best suited for average account holders. Through Islamic banking, the loan is provided on the basic principle of Sharia law in which banks and borrowers are both partners while sharing profit and loss.

The best strategy to get your own home

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:

  1. Variable repayment method
  2. 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.

Best SME’s opportunities in the UAE

Here one has to understand two basic concepts – SME’s services and the available options for small-sized businesses in UAE. Before going to clarify your answers, I want to share that the best small business opportunities are available in bulk and one should begin a small business venture to get a handsome amount of profit. The different business ventures in Dubai can be categorized as:

  • Small business opportunities in the education sector. An English medium school in UAE would be the best choice to earn a handsome amount because we have seen many American and English medium schools running at the private level.
  • The food business is very popular as a large number of people are based on the tile of outsiders or expatriates. A Chinese or Italian restaurant would be the best small business plan.
  • The industrial sector is a big fish that could only be catered with a large investment plan and banks in UAE can guide you better for such openings. As all of you think about Dubai that it is a land of opportunities and amongst the most loved goals are the best business sectors.

Coming back towards our main topic small businesses in Dubai openings are not simply open to the residents but also for outsiders. In this article, I would like to share some points about the foreign exchange market including stock exchange and forex trading. These two markets are highly opened for everyone but fresh investors, I would suggest you all go for the forex market. There are numerous trading zones in Dubai and that is the reason business and exchange packages are being provided by the banking sector.

How banks can help with SME’s services?

Before going to explore this question, you need to understand why the government is empowering the expatriates for small business opportunities? From a stable and growing economic point, you can assume that expatriates are contributing are a lot for these marks. With respect to this local banks provide some special packages to these outsiders to manage their daily routine based tasks. Banks provide loan services and investment plans in the form of:

  • Forex trading
  • Stock exchange

Diverse kind of services by different banks are available through SME bank account in UAE. Anyone working in a corporation can get loan services and then invest in a small business plan. This is the best way to get rich in a less time period and one can get a large amount of profit. As we have discussed above different areas for investment that come under the category of SME units, it’s up to you which area you would choose according to your ease.

As a matter of first importance, we would suggest that the food business on a small scale or at a bigger level might be the best choice for expatriates. So you can take a final decision or an action for a project. Before beginning an eatery business you need to figure out what is your target population? Because if you will start a business in the wrong area then the margin of profit for sure will be less. For complete guidance, banks in the UAE can help you better and you can approach a bank through its official portal.

Mortgage loan for expatriates in UAE

Most of the people in the UAE are expatriates and they worked there for a better lifestyle. We all know that everybody wants to have good living with a family having all the basic necessities. But in this industrial era, you have to work hard to support your families especially in developing regions. If outsiders are working for the prosperity and stability of the region, in return Dubai banks private as well as the public sector are trying to facilitate them with the best services.

For example, you can take home finance in Dubai to make your dream into reality for expatriates. This can be done through a loan called a mortgage loan. Two parties are involved in this process as a lender and a borrower. You can choose any lender according to your choice but we suggest you approach banks because they are the best finance for such kind of services.

Another option to take a mortgage is available through Islamic banks in which there is no interest rate on loan services. Would you believe that one can get a loan package without any interest? Yes, it is possible through Islamic banks. For further details kindly visit the official website of any Islamic bank.

How do you get a mortgage loan?

Come to the most important question that’s frequently asked by a different reviewer that how to get a mortgage loan? There are different parameters that vary according to your lender but a prospective borrower must apply for a mortgage through a bank. One can also take the option of a credit union or another financial lender. Mortgage brokers can also be used because they are well aware of the current market trends and updated information about loan packages. These individuals or companies will present your loan case to different lenders and try to grab the best and most suitable deals for you on some commission.

Things most of the lenders examine while providing the best mortgage loan in UAE:

  • When applying for the loan, the lender (a bank or any other financial institution) will want to fully examine the applicant’s financial situation and past loan history. We all know that this would be an unpleasant process for many individuals and they try to avoid it. If you have a good and well-reputed credit history then you can avoid such situations.
  • When the loan is approved, the borrower has to provide a property to the lender as a guarantee on a fixed time period. The lender will ensure that the value of the property is accurate to the amount of the loan being issued.

There are some other charges like borrowers have to pay an origination fee, miscellaneous taxes, and filing fees to complete the mortgage loan process. These small payments or we can say that charges will be paid on the spot while signing the contract while the interest rate on a loan amount will be paid within a fixed time period on easy installments.

Get your own home through a mortgage scheme

The majority of outsiders in UAE are completely interested in using a mortgage loan to finance their own homes. This is perhaps the only way they could afford a home without any problem. We all know that life in the UAE is busy and expensive, everything is hard to purchase within a salary package and some savings are pretty necessary to meet daily routine expenses. So how it would be possible to get a property or a home? To meet such demands banks in UAE are providing some amazing offers to purchase your own home. The home is typically the largest asset or best gift for your family and coming generations, and the corresponding mortgage loan would be the easiest way to make this dream into reality.

The majority of the outsiders in UAE are working in different companies but they don’t have resources to purchase their own home. It is working with a long-time period plan but actually possible. Today we are going to provide some amazing facts about sponsoring your own home by taking UAE bank’s services.

Financially this is a big project and both locals, as well as expatriates, can get benefits from this opportunity. Home loans for permanent residents somehow vary from packages provided to outsiders like guarantees or loan amount. Here the point for you to understand is that how mortgage how the mortgage loan process and can be completed successfully and this thing is absolutely critical. In this article, we are going to share an overview as a basic idea to understand the essential information on mortgage loans.

Mortgage loan and outstanding balance:

Mortgage loans are designed and offered to account holders just for the sole purpose to purchase a home for their families. This is a primary tool for home buyers so that they could afford this luxury item in their lives. Keep one thing in your mind that such types of loans can vary from one bank to another, so these can also be used to buy some investment properties and vacation homes.

Coming towards the actual working, a borrower will pay a down payment on the home, and the remaining amount of payment will be supported through a mortgage loan. In most cases, the lender which can be a bank or any other financial institution will pay for 80% of the price of the home. Although there are specialized programs and lenders are in a position to finance the borrower for a higher percentage of the purchase but it varies considering account holder’s financial assets. Some programs regarding mortgage loan will even provide for 100% financing so that to accommodate the borrowers.

You’re working to repay the mortgage loan is really important because it would be really hard to manage mortgage loan bad credit once you stuck into it. Try to cover all your installments on time and don’t waste a single day because with the late repayments interest amount will be increased that would be an extra burden on your side.

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