Why Getting a Mortgage in UAE is So Hard – And How to Make It Easier!

Introduction:

Buying a home in the UAE should be an exciting journey, but for many, the mortgage in UAE process feels overwhelming. Strict bank requirements, tons of paperwork, and hidden fees make it frustrating for buyers. At BetterWay Mortgage, we simplify the process with fast approvals and expert guidance. Let’s break down why mortgages in the UAE can be challenging—and how we can help.

Common Mortgage difficulties in the UAE

1. Strict Eligibility Requirements Mortgage in UAE

Many face strict approval criteria:

• Minimum Salary Requirements: Many banks require a monthly income of AED 10,000 or more for salaried employees, or AED 40,000 credited to a personal account for self-employed individuals. Some may require AED 2 Million turnover in a company account annually.
• Credit Score Checks: A low score can lead to higher interest rates or loan rejection when seeking a home loan UAE.
• Employment Type: Salaried employees often find it easier to get approved than self-employed.
• The Betterway Solution: We match you with the right bank to improve your chances of mortgage approval UAE.

2. Overwhelming Paperwork

• Extensive Documentation: Banks require salary certificates, 6+ months of statements, passport, visa, Emirates ID, and property valuation reports.
• The BetterWay Solution: We handle all paperwork for you, ensuring a smooth process when applying for a mortgage in Dubai.

3. High Down Payments

• Significant Costs Upfront: Expats often pay 20% down payments for properties under AED 5M, and UAE Nationals pay 15%.
• The BetterWay Solution: We negotiate with banks for flexible options.

4. Hidden Fees & Extra Charges

• Unforeseen Costs: Includes processing fees (0.25% – 1%), valuation fees (AED 2,500 – AED 5,000), and early settlement penalties (up to 3% of the remaining balance).
• The Betterway Solution: We provide full transparency and secure the best mortgage rates UAE.

5. Slow & Stressful Approval Process

• Lengthy Wait Times: Approvals can take 2-6 weeks due to missing paperwork or slow valuations.
• The Betterway Solution: We expedite the process by handling everything from document submission to bank follow-ups for your expat mortgage UAE.

Understanding Mortgage Options in the UAE

Betterway Mortgage offers different loan products:

1. Handover Payment Mortgages: Developer gets paid balance as per Statement of Account (SOA).
2. Resale Property Mortgages: Financing for resale properties up to 80% of market value.
3. Equity (Refinance) Mortgages: Financing 50%-70% of market value for fully owned properties.
4. Buy-Out Mortgages: Customers switch to better interest rates with this refiancnce service.
5. Buy-Out + Equity Mortgages: A new bank may pay off the existing loan.

Eligibility and Requirements

• Income Eligibility: Banks may consider combined incomes, but at least one applicant should meet the income requirements independently. Monthly credit requirements are applicable for Self-Employed.
• Tenure:
  • The maximum age for salaried individuals is 65 years, tenure is calculated by subtracting the customer’s age from 65.
  • The maximum age for self-employed individuals is 70 years, tenure is calculated by subtracting the customer’s age from 70.

Additional Terms:

• Non-residents cannot use equity for financing.
• Rental income above AED 600,000 yearly may qualify for certain financial products.
• First mortgages can go up to 80% of the property value, and subsequent ones can get upto 60%.

Document List:

Salaried Residents need: Passport, Visa, Emirates ID, Salary Certificate (dated less than 20 days), Last 6 Months personal bank statement, Last 6 Months Payslips, and details on total liabilities.

How Betterway Mortgage Makes It Easy:

• We ONLY Do Mortgages – which assures your investment is safe.
• Fast Approvals – We work with multiple banks for the best deal.
• Expert Guidance – Our advisors handle everything from start to finish.
• No Hidden Costs – We ensure full transparency and the best rates.

Conclusion:

Getting a mortgage in the UAE can be frustrating, but it doesn’t have to be! Betterway Mortgage simplifies the process and gets you into your dream home without stress. Conact Us now!

UAE Property Market Report (for latest trends)