Choosing your mortgage is an important step towards getting a property in the UAE. At Mortgage Finder we work with you, providing a mortgage report with the top recommendations to suit your requirements, but what do we take into consideration and how can our advice help you get the best mortgage possible?
Understanding the fine print
One of the most concerning aspects about getting a mortgage, especially for expats and non-residents purchasing property in a new environment, is making sure that you are doing everything correctly. It is important to make sure there are no overlooked clauses or cleverly worded small print that can make a perfect deal on paper become a nightmare in reality.
Working with Mortgage Finder means having trusted advisors who pour over the finer details of any mortgage offer to make sure there’s nothing hiding behind the scenes that could cause a problem later. Our experts will translate even the most confusing mortgage jargon into understandable terms and make sure you’re confident with your selection.
But that’s just the beginning…
Comparing interest rates
For most (including ourselves), interest rates form the very core of your mortgage deal. After all, it can mean a difference of hundreds or even thousands of dirhams per month if you get a poorer deal and higher interest rate.
It’s our starting point when analysing a mortgage for you. We look at whether the mortgage is variable or fixed rate and take into account the interest rate calculation – flat or reducing. We’ll crunch the numbers for you so that you can see the real cost of the mortgage over the term and be able to make a true comparison, sweeping any clever language and eye-catching marketing aside to reveal the core value underneath.
We understand how the rates change over the years of your mortgage, taking into consideration revert rates and whether the bank includes a floor rate that applies regardless of changes to EIBOR.
By using our report, you will be best placed to make a decision on the mortgage which suits you best and understand how changes may come as the years go on and how to plan and adapt to them.
Focusing on fees – bringing light onto the cost of the mortgage
What are the costs associated with the mortgage? Are there any hidden costs which you will need to pay upfront, during the life of the mortgage or upon exiting the mortgage?
Banks can charge different fees, and some may have other costs which are not always obvious.
It is important that you are aware of any costs which could affect you before you commit to a mortgage product. In our report and consultations, we will break down the fees that the different banks charge so you can make an informed decision between them.
Common examples of costs that are not always considered include charges for making overpayments on your mortgage and fees when exiting the mortgage, as Central Bank regulations now allow lenders to charge an early repayment fee of up to 3% of the outstanding mortgage balance.
Life and property insurance policies are prerequisites when taking a mortgage in the UAE. We take into consideration whether you are able to take to take an external policy or if you will have to use the bank’s in-house insurance. If one of the mortgage offers you are considering require that you take out an in-house policy with the bank, then we look into whether this due to be paid monthly, quarterly, annually or in a lump sum – as this can impact your costs and therefore whether the mortgage is actually suitable for your situation.
As part of our service, at Mortgage Finder we scrutinise your mortgage offers with the future in mind, detailing fees in full as well as making sure that what looks great today isn’t actually a disguise for a locked in problem in years to come.
Working with your plans first and foremost
Knowing your plans has a huge impact on the mortgage deals that we put forward to you – do you intend to remain resident in the UAE for decades to come, or are you looking for an investment opportunity? Will you benefit from an option to rent in later years, or will you want to make large annual overpayments to clear the mortgage as fast as possible?
We will also consider your current circumstances; for example, if you are a resident we will look into the length of time you have lived in the UAE, your employment status and even who your employer is – these can all impact which bank is preferable and the mortgage we can secure for you.
It is always our advice to be honest and open with your mortgage broker about both your current situation and future plans – it can save you time and money.
By understanding your plans, we can find the perfect mortgage deal to fit and ensure you are not saddled with a loan that’s better suited for a different type of customer.
Finding the right lender for your finances
Many people worry that they will fail affordability or credit checks, that they don’t have the right level of down payment or that their employment status won’t be properly understood. At Mortgage Finder we specialise in finding the right product that is tailored to your personal finances – and will get you the best deal we can from a range of lenders.
We will work with you to find mortgages that fit your circumstances. For example, if you have just about enough for the down payment, then we can help you by looking at mortgages that will allow you to include some of the buying fees into the loan, meaning you don’t need to worry about finding additional funds in advance for these costs.
Our experts pre-empt the questions and requirements the bank will have. For example, we will help you with the proof you need to supply to show the audit trail of your down payment if required – or work with you to find a mortgage provider who is more flexible on this if we know you will have difficulty gathering all the documents.
Experience and insider knowledge give us a huge advantage when selecting the lenders for you. We know the way each bank checks affordability and can approach the banks which will best suit your situation.
Do you need your commission and other bonuses to be taken into account for income and affordability? We know the lenders who are able to consider these.
Perhaps you have a housing allowance package or dividends that you would like to be considered as part of your mortgage affordability – different banks will take into account different percentages when evaluating benefits such as these.
Affordability is a key factor in assessing your mortgage. At Mortgage Finder we match clients to lenders that understand their situation and can offer a competitive mortgage package.
A comprehensive mortgage through Mortgage Finder
We understand that no two customers are the same, and that there’s no one-size-fits-all mortgage. At Mortgage Finder, our comprehensive report will provide you with the best option available once everything is considered – from joint incomes to off-plan buy-to-let investments. Why not give us a call today or fill out our contact form to see how we can help you get the perfect home?
