#compare home loans
Got a question?
How do I choose a home loan provider?
Compare, compare, compare! Use our smart comparison tools to choose the best home loan for you. You may also wish to consider using a mortgage advisor such as Best Rate, who will do the hard work for you, recommend the best product for your needs and help you through the entire process from consultation to completion.
What key criteria should I consider before taking out a home loan?
What is the difference between a Fixed Rate and a Variable Rate home loan?
With a fixed rate home loan, you repay a fixed rate for a set number of years. With a variable rate, the repayment amount varies with the market rate, which means your repayments can change as the rate changes.
Will a bank lend me the full amount required to purchase my property?
No. You will need to pay a down payment / deposit and the bank will also carry out a valuation of the property and base the amount they lend you on this value rather than the purchase price. Any difference between what the bank lends you and what you need to pay to buy the property needs to be paid by you. A bank will commonly lend you 70%-85% of the property value.
Do I need to have a down payment / deposit?
Yes. In the UAE, it is a requirement to pay a down payment or deposit. The amount required will depend on whether you are a UAE national, resident expat or non-resident as well as your employment status and whether you are a first time buyer.
Should I apply for a home loan before looking for a property?
We advise you to obtain a pre-approval, which will help you to determine your budget. A pre-approval normally has a validity of one to three months, which is the time you have to make an offer on your chosen property. Once done, you can proceed with obtaining the final offer and completing the transfer process.
Can I take out a home loan as a first time buyer, non-resident or if I am self-employed?
Yes. Depending on your individual situation, different documents are required. Your chosen provider will provide you with details.
What is an arrangement fee?
This relates to what the bank will charge you at the beginning of the loan and is normally added to your principal loan amount. Some banks may offer home loan products with no arrangement fee but others may charge a fixed fee or a percentage of your total loan amount.
What is an early settlement fee?
This relates to the fee applicable if you decide to pay off your loan early. If, for example, you take a home loan for 25 years but expect to be in a position to pay if off before then, any early settlement fee becomes an important factor in choosing your home loan provider.
What is the difference between Flat and Reducing Interest Rates?
Rates on home loans can be calculated in two ways as a reducing rate or as a flat rate. With a flat rate, the rate is calculated on the entire principal amount of a loan (the full, original amount borrowed) whereas with a reducing interest rate, interest is charged only on the outstanding amount of the loan on a periodic basis.
Flat interest rates are normally lower than the reducing balance rate and therefore considered misleading. When it comes to comparing loans, the best way to compare their true cost is to convert everything into the Reducing Interest Rate equivalent (click here for more information)
How long do I have to settle my home loan?
Tenures range on mortgages so make sure you take into account the tenure period when choosing a home loan product. Be sure to consider early settlement fees as well, in the event that you are in a position to make early repayments and settle your debt early.
What if I wish to sell the property before paying off the loan?
You are free to sell your property as and when you choose. You’ll just need to repay the full outstanding balance of your home loan at the time of sale.
What documents do I need in order to apply for a home loan?
Your residency and employment status will determine the exact documents you will require to submit on application. Your chosen loan provider will provide you with all details.
Do I need to transfer my salary to my home loan provider?
Not necessarily but doing so will often get you a better rate as you are then considered less risky to the institution.
Do I need to take out insurance on my home loan?