With over 70% of Dubai property purchases funded by a mortgage, it’s important for buyers to understand how to approach the process.  The tips outlined below should help save you time and avoid unwelcome surprises as you get further into your property search and negotiations:

1. Secure finance before starting your property search

One of the most important things you can do when acquiring a property is to have your financing already in place. This will allow you to search freely within your budgetary boundaries without wondering whether or not you will be able to afford it. Knowing your price range and what the lender is willing to give you will put you in a much stronger position for negotiation.

2. Obtain specialist advice

When purchasing property in Dubai, knowing how to obtain the best mortgage deal can be challenging. If you are new to the process, getting assistance from a property specialist to help you with any paperwork, research rates and anything else that can make the transaction smooth for you should be a priority. There are a number of documents required when obtaining a mortgage that you may not be aware of. It’s better to have someone who knows what they are doing, understands the laws and regulations, and has the relationships in place with lenders and banks to support you.

3. Use a mortgage calculator to understand your monthly budget implications

Many, if not most banks and lenders, have online mortgage calculators to give you a good idea of the costs you will incur every month. Although a rough estimate, you will have a clearer picture of how your finances will be impacted. There are many resources on the web that have different calculators with different scenarios. Using at least three will give you more options to decide your strategy.

4. Shop around for rates

Mortgage rates fluctuate between banks and lenders all the time. Just because you bank at a certain institution does not mean you have to use them for your mortgage. You may find a better deal with another lender that will be more beneficial to you and your finances. Being smart and proactive is key when researching mortgage rates. A matter of days can make a huge difference.

5. Read the small print!

Mortgages can be one of the longest financial commitments that you enter in to.  Understanding the clauses within your will could have a significant impact on the total amount that you repay over the lifetime of the product.  For example, what are the terms within the contract to exit early, make over payments, adjust the mortgage term or make other flexible adjustments over time? Often buyers focus on the immediate monthly repayments, but do not consider how flexible the product is and how well they may be able to adapt to a change in future circumstances.

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