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Buying in Dubai, what do I need to know?
In Dubai, we can arrange both Muslim and western mortgages.
Through our wide network of banks from around the world we can also offer mortgages in a range of currencies. This can offer additional options and benefits, such as having the mortgage denominated in the same currency as your income, or selecting a currency such as the Swiss Franc which has a low interest rate. (Dubai mortgages have interest rates of about 9.5%, Swiss Franc mortgages in Dubai are about 5.5%)
What type of property can I get a mortgage on?
We can arrange mortgages for individuals or companies to buy main homes; second homes; rental or investment properties; off-plan properties and commercial properties. Equity release mortgages are also available.
What currency will my mortgage be in?
We can arrange mortgage in all major currencies and some banks offer a facility that allows you to switch between currencies.
What is the maximum loan amount (LTV%)?
Depending on the valuation of the property, or purchase price, non-residents can borrow up to 80%. All mortgages are subject to income but some banks will also take rental income into consideration.
What is the minimum loan amount?
The minimum loan amount that Somerset Mortgages will consider is €75,000.
How long is the term of the mortgage?
The mortgage term can be from 5 - 30 years.
How much will the bank charge me?
Generally the banks will charge you a 1% arrangement fee.
Do I need life assurance?
Life assurance is not mandatory, but is always recommended. We can help you arrange this at minimal cost.
Which mortgage types are available?
Both capital repayment and interest only mortgages are available for both purchase and equity release.
Interest rates
The interest rate will depend on the currency of the mortgage. For example, if a Euro mortgage was selected then the EURIBOR (European Interest Offered Rate) would apply, plus the bank's margin. When you have the choice of so many currencies, it can often make the buying process seem more complicated. At Somerset Mortgages we will discuss your options with you and provide you with a clear quote, which will show the interest rate and all the other costs involved.
Fees and Taxes
Estate Agent Fees - Allow 2% to 5%
New Builds - Land registration fees of approximately 2%
Buying a re-sale property - Land registration fee of approximately 2%, plus a transfer fee of 1% - 2%.
Legal fees - Lawyers are not required in Dubai when buying property, however always recommended.
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Whenever buying a property overseas, we recommend that you seek professional tax and legal advice.
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