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Azco Journal

First Time Mortgage Applier Guide

It is an emotional experience of buying a house, especially if it’s in a foreign country. Doing due diligence before buying a house is so crucial to ensure that the process is smooth and stress-free.

It is important to get professional help from a mortgage advisor who can help you through the entire process. This will save you time and money.

Before having a discussion with your mortgage advisor, it is important you know what you can borrow in the UAE.  If you are buying your first property as an expat for under AED 5 million you can borrow up to 80% of the property value. If you are buying a property worth over AED 5 million you can borrow up to 70% of the property value. For a UAE National the borrowing value is slightly higher; buying a property under AED 5 million Nationals can borrow up to 85% of the property value and up to 75% of the property value when buying over AED5 million.

First step – Consultation
After doing your own research, it is important to contact a mortgage advisor for a free consultation. During this session, the advisor will spend about 15 minutes with you to talk about your financial situation and goals.

Second step: Documentation
Once you are happy with your choice of mortgage advisor you need to send them all the documents that are required to start the pre-approval process:

  • Passport copies with visa page visible
  • Emirates ID front & back.
  • Salary certificate in original format addressed to ‘Whom it May Concern’ for initial approval.
  • 6 months’ payslips if applicable.
  • 6 months bank statements (internet copies will be suffice for initial approval)
  • Latest credit card statement for all your cards.
  • Details of existing liabilities (car loans/personal loans/mortgages).

Your advisor will go through all the documents and make sure that they fit the criteria before submitting your application.

Third step: Pre-Approval
Once the bank has addressed the issues related to the loan, the Pre-Approval can be issued. This usually takes up to 5 working days. However, the most important part to remember is that the pre-approval is only valid for the next 60 days.

Fourth step: Final offer
You will now have found the home of your dreams and be ready to commit to a mortgage. Your mortgage advisor will need the property documents including the title deed, seller’s passport and a floor plan of the property as well as the valuation fee and cheque. They will arrange a valuation conduction with the bank and thereafter it will take 5 working days to complete the final approval.

Final step: Transfer of Property
One final step before you are a proud homeowner – the transfer of the property. If the seller of your property has remaining liability, your bank will pay this off and await the release of the original property documents. Your real estate broker or a sales progression team will closely oversee this entire process. Following this, we can proceed to apply for the No Objection Certificate (NOC) from the developer. Once the NOC has been delivered the property can be legally transferred from the seller to you, the buyer.
For any other query, feel free to contact Azco Real Estate at anytime.


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