In what could be good news for millions of expatriates, experts believe UAE banks are now more willing to give mortgages to those whose salaries are within Dh15,000 and Dh20,000 a month.
A few banks are willing to offer mortgages to expatriates earning as little as Dh10,000, but the choices will be “highly selective”, UAE-based The National quoted experts.
“Home ownership in the UAE is increasingly attainable from the Dh15,000-Dh20,000 monthly income range, provided buyers have the required down payment and manageable existing financial commitments, Farooq Syed, chief executive of Springfield Properties, told The National.
A mortage on salary between AED 15,000 and AED 18,000 allows anyone to buy a home in affordable communities, if the banks are convinced of a stable employment history besides a reasonable deposit and controlled debt level. They will have to choose an affordable community and smaller units. “Off-plan options with sensible payment plans can help, but fundamentals such as developer quality, service charges, and resale liquidity should not be overlooked,” the report quoted Andrew Cummings, head of residential agency at Savills Middle East.
As for the areas where these people can look at, the experts suggest Dubai South, International City, parts of Jumeirah Village Circle, Dubai Silicon Oasis, Dubai Production City, Liwan, and other parts of Dubailand.
Communities such as Dubai South, Town Square, Arjan, and Al Furjan are also preferable, thanks to the competitive pricing and improved infrastructure.
Many experts warn that buyers should focus on exploring mortgage options early, consider upfront and long-term costs, and use a first-time home buyer checklist to ensure they manage the expenses.
Recently, Dubai had launched ‘first-time homeownership’ wherein expatriates can get straight discounts of up to 10% on property deals, and the payment tenor on mortgages would extend to 18 years if all the other eligibility criteria match. This plan is aimed at bringing first-time property owners into Dubai as much as possible, and the offered homes would be under Dh5 million.