Mortgage is one of the main modes of property acquisition in Dubai. With Banks and financial services offering their services tailored specifically for Dubai’s property market, the application and execution of it is broken down to simple steps.
But do you know the steps to secure a property via a mortgage? If you don't, we've got the steps of this process listed down for you.
1. Pre-Approval for Mortgage
This allows you to have a clear understanding of your capacity in terms of the budget. It can also present the validity of your offer to the agent and the seller when an appropriate deal comes across you.
Getting Pre-Approved includes:
Submitting proof of income by a salary certificate, bank statements, or audited financials for self-employed individuals.
Submitting your passport, visa, and Emirates ID.
Initiate the pre-approval process via a bank or a mortgage service.
Pre-approval can take 4 weeks to get, and usually lasts from 60 to 90 days. This puts you in a more verified position as a buyer moving into a property deal.
2. Exploring Property Options
Explore properties that are for sale with the assistance of a licensed real estate agent who specialises in the area or type of property you wish to buy.
Shortlist the list of selected properties with your agent and visit the selected properties in person.
3. Making The Offer
Negotiate the prices via your real estate agent to secure the best deal price. Once you reach an agreement, sign a Memorandum of Understanding (MOU) to make the agreed deal official to move forward.
When signing the MOU to go through the initial deposit the buyer should handover a 10% of the property value as a cheque to the agent. This will be returned to you upon a successful property transfer.
4. Verifying With A Conveyancer
A conveyancer will help you ensure that all legal and procedural requirements are in order. In this stage they will verify title deeds, and prepare transfer documents. This will save you a lot of time and expense by reducing back and forth movement in the deal.
5. Bank Evaluation To Secure The Mortgage
The bank will check and evaluate the property to confirm the required mortgage based on the valuation of the property. At this point the buyer should arrange the downpayment which is required.
6. Property Blocking By The Bank
The buyer's bank or the mortgage service pays the seller or any existing mortgage. This secures the property and is reserved for the buyer.
7. Collecting NOC from the Developer
The seller will present a No Objection Certificate (NOC) that is approved by the developer, this confirms that the property is settled with any outstanding payments or approvals to the developer.
8. Transferring The Ownership Of The Property
Both the parties will meet at Dubai Land Department (DLD) to finalise the transfer process. For the final transaction they will require
Original title deed
Buyer’s EID and passport
Seller’s EID and passport
NOC from the developer
Mortgage pre-approval proof
During the transfer, the following payments will be paid as fees:
4% transfer fee to DLD.
Agency commission (typically 2%).
After this is sorted out, a new title deed will be issued under the buyer’s name.
9. Handing Over of The Property
The documents and the keys to the property will be handed over. Before finalising, make sure the seller has settled all fees and utility bills.
This was a breakdown of how to acquire a property on mortgage. While every deal has its own properties that may add or remove certain aspects of the process. Contact us to understand which steps and services would be the best for your real estate requirements.