faqs

Both mortgage and cash purchases have their advantages and drawbacks. It all depends on your individual preferences, financial situation, and your purpose for buying property in the UAE.

Before getting a mortgage, it’s important to get a pre-approval letter from the bank. This letter tells you the maximum amount of money the bank might lend you for buying a house.

EMI is the monthly payment you make to the bank. It includes both the interest on the loan and the part of the loan amount itself. You pay EMI every month until the loan is fully paid off.

LTV is how much money you borrow compared to the actual value of the property. For example, if your LTV is 70%, it means you paid 30% of the property price upfront and borrowed 70%.

If you want to pay back your loan earlier than agreed, there might be a fee called an Early Repayment Charge. This fee depends on whether your mortgage interest rate is fixed or variable.

Equity is the difference between what you owe the bank and your property’s value. As you make payments and property value goes up, your equity increases. You can use this increased equity for other investments. 

The NOC is a document required from the developer to transfer ownership. It confirms that the property’s developer has no objections to the sale.

In addition to the property price, buyers should budget for fees such as agent commissions, transfer fees, and potential maintenance costs.

The timeline can vary based on factors like property type, financing method, and market conditions. On average, it takes around 30 to 90 days to complete the process.