Purchasing your home for the first time can be challenging in terms of arranging finances and obtaining a mortgage. To ease the process, various banks provide UAE nationals with exclusive home finance solutions. The facility is specifically created to offer financial assistance to the locals planning to buy their first home in the Emirates.
Let’s take a closer look at the finance options and other details related to first-time home buyers’ finance.
First-Time Home Buyers’ Finance Options
First-time home buyer finance is slightly different from other types of home finances in the UAE. Along with no procedure fee and own payment, the plan includes other types of facilitates also.
Here are all the benefits that first-time home buyers in the UAE can avail of.
Maximum Finance Limit
The maximum limit of the finance depends on the home financing solution you opt for. For purchasing property for the first time in Dubai or any other Emirate, the bank can provide finance up to AED 5 million. Whereas AED 3 million will be provided for home construction. In the case of land purchasing, the amount is AED 2 million. The repayment period of all the finances is up to 25 years.
Requirements
As mentioned earlier, this scheme is to support first-time Emirati home buyers. Hence, the requirements are minimum.
Here is the list of requirements that the applicant has to fulfil.
- The applicant must be buying property for the first time.
- It is necessary that the applicant must be an Emirati.
Now that you are aware of all the requirements of house financing for first-time owners, let’s move towards the fees and other charges required to be paid.
Fees and Charges
To elevate the facilitation to the next level, a number of fees and charges are exempt.
- No down payment is required to acquire a loan.
- No salary transfer is required.
- A minimum early settlement fee is required.
However, applicants are required to pay the following fees and charges:
- For up to a maximum amount of AED 10,000, a 1% settlement fee will be charged.
- For under-construction property, 0.019% property tax will be charged. Whereas the property tax will be 0.0135% for ready properties.
- The approximate property valuation fee for the property will be:
- Land valuation (Desktop only): AED 1500
- Under construction: AED 4,200
- Land+Construction: AED 4,200
- Complete property: AED 2,625
Note: The aforementioned conditions and charges may vary from bank to bank. It is suggested to contact your respective bank in Dubai or another Emirate for accurate figures.
This was all about first-time home buyers’ finance provided by the banks to facilitate locals. These types of mortgages will aid in the UAE’s vision of providing housing to the Emiratis. Along with locals, expats can also leverage other types of home finances provided by the financial authorities in the Emirate. If you are also interested in buying a home for the first time, browse through these properties for sale in the UAE, select an appropriate residence for yourself and purchase it with the help of house financing for first-time owners.
FAQs
Is insurance required to cover the mortgage in the UAE?
Yes, life insurance and property insurance are both required when acquiring a mortgage in the UAE.
What is a property valuation?
Property valuation is a process in which the bank evaluates the amount paid by the applicant and the property value. This is to ensure that the applicant is not paying more than the market value of that property.
What is the maximum loan repayment term?
It varies from bank to bank and the type of mortgage you have taken. However, for first-time Emirati home buyers scheme is 25 years.
Stay tuned to UAE’s top property blog for more information on first-time home buyers’ finance in the UAE.
