How to overcome challenges by facing mortgage in UAE?

20 Feb 2019

Every year many people come to the UAE just to earn a living and try to make a future for themselves. As UAE is famous for the land of opportunities and when hundreds and thousands of people are moving here yearly, buying a house getting the loan for one becomes a priority. In the UAE, especially when you are not well established, making a decision to purchase property here is easy. Then if you are an immigrant finding your dream house having it is not that difficult.

Here you are going to read about how to get a mortgage so that you could purchase a house and how to overcome challenges as an expat. Now if you are about to look at some opportunities in UAE, you can read our blog.


Are you new in the UAE?

The banks here are very particular about some things when it gets to approve a loan. They go through your details including the time period of your employment, how long you have been living in UAE and some other too. If you have been in UAE just recently then it is likely that the application will be rejected. For the approval the minimum time that is required for you to be there, you have relocated there, is six months minimum and in some cases, it reaches up to a year. This is only the time, the company you are getting loan form also checks your service time. The current employment service length has to be at least half a year.


Employee or Self-employed

Other than the above-mentioned conditions one of the most common ones is, your company, the one you are currently working with, has to be listed with the bank. This is to limit or eliminate the risks of the offering. If you have ever applied for a loan in UAE, as an employee, then this is the most common condition and you must have heard of it before.

Most of the multinational and well-reputed companies are listed with the bank. So are the governmental companies, obviously. It is very disappointing when you fulfill all the conditions to get the loan but then rejected by the bank because your company is not listed with them.

The case with self-employed people instead of employment length, the time for which you are conducting your business there is considered. And in this case, the time period has to be more than at least two years and some banks prefer three years. Having a savings/salary account with the bank increases the chances of your application getting approved for a mortgage in UAE. Want some tips on how to grow your business, read about how to make your startup a success.


Your income matters

Every bank has criteria that required a minimum monthly income that you have to fulfill if you are an employee. Meaning you should have at least an income of Dh 10,000 to get your loan approved by the bank. This is the criteria for the emigrants who are applying for a mortgage and the price may vary depending on the bank. Some banks have little different conditions for self-employed or business persons.  One of the tricks to get your loan approved is to add the spouse as co-applicant. If the spouse is also a salaried person then it is highly likely that application will meet all conditions and your mortgage will be permitted.


Required documents

For emigrants and UAE nationals, the documents required are the same. If there is a difference here it is the identity proof. The emigrants are supposed to come forward with their passports, resident visa, and a photocopy of each of these along with documents that are required.  The documents are Emirates ID, pay certificate, trade license (this is for self-employed people), bank statements of the last six months, and some other added documents according to the profile of applicant. There is going to be no problem and issue if you have these and you fulfill the requirements for a mortgage.


Credit history

The next important thing is your credit history. It has a significant part in getting your mortgage approved, not only in UAE but all over. The credit score has to be high and that is calculated from your credit history and other financial details like the cash incoming and outgoing. This also includes where that money is coming from and the history of previous loans. If your credit history is not very well then consider your application rejected. This is not to let you down, in fact, we are just letting you know.

To start building your credit history you can start using a credit card and pay the bills from that card. It is better to do it as soon as you move to the UAE or as soon as possible in other cases. It would benefit you in case you need a mortgage approval later. What harm does it do to you, none, so why not do it anyways.

Without planning you should not take such bold and huge steps. So, in this case, there is good research and planning is needed. Start planning and making decisions two or three years before submitting the application for the mortgage. Financial companies are super supportive if you are an immigrant and applying for a loan. The icing on the cake if you are fulfilling the requirements too. The basic requirements that you have to meet our financial stability, company, and financial history. You taking care of these will also build a trust relationship between your lender and you. It is important to establish trust with your lenders. Now if you have a home then you need some home appliances, buy the best home appliances from plug n point.