The United Arab Emirates is one of the friendliest countries in the world. For various industries and positions, the country welcomes employees from all over the world. UAE also welcomes interested Foreigners to start a new company. The UAE enacted a new law in 2019 that allows foreigners to own property in the country.

The most cost-effective way to buy property in the UAE is to take out a mortgage. One will have more financial flexibility then. International borrowers who want to buy a home in the UAE will get a mortgage quickly. As a result, one won’t have to worry about putting aside a large sum of money.

For expats in the UAE, using a property mortgage calculator is the first step toward obtaining a loan to purchase a house. It's a great place to start while figuring out how much money one needs to put together for this form of investment.

There are a few other things you should know as a foreign investor while having a mortgage in the UAE. The following are the most important:

Meeting several requirements:

To be eligible for a mortgage, you must meet certain conditions. The following are the typical ones for expats, but they may vary depending on the bank or loan provider:

Requirements:

· With a steady income of minimum wage AED 10,000.

· Depending on the lender and the region where you are buying a home, you must work or earn income in the UAE for at least six months or a year.

· A good credit score and a minimum of 21 years old are required.

A copy of your passport, proof of residence and current address, bank statements, work certificate, and pay slips are required. Different banks and mortgage lenders have different requirements. Until you submit an application, look through each one carefully and make sure you fulfill all of the criteria.

Two main types of mortgages in the UAE:

· Fixed and variable rate mortgages are available in the UAE. Fixed rates are provided for one to five years, but may be extended. The Emirates Interbank Offered Rate, or EIBOR, is used to measure this, along with a margin set by the mortgage provider.

· The prices are easy to measure. It could cost you more in the long run. Variable rates are market rates based on EIBOR rates. Payment terms are usually set for 25 years or more. These mortgages can be arranged with a fixed or reducing interest rate.

Flat rates are determined using the entire loan amount upon the agreed term. This ensures easy calculation of monthly payments. In the long term, it could be costly. Reducing rates are determined based on the loan's residual balance and are frequently more accessible.

Deposit varies depending on the type of property:

· If you want to buy a property for less than AED 5 million, a deposit of at least 25% is needed. A deposit of at least 35% is needed for more expensive homes.

· If you're buying a rental house, larger deposit amount is required. A 40 to 50% down payment is needed for a buy-to-let mortgage.

· Mortgage loans of up to 80% of the property's value are available to foreigners with good credit.

Practice diligence before applying for a mortgage:

· One can apply for a mortgage directly through a bank or loan provider. Collect and compare all the important information, use a mortgage calculator and comparison websites.

· Before applying for a mortgage, get an agreement in principle. This document states that the lender has given you preliminary approval for your loan.