RealTrust's Guide to Financial Preparation for Buying Property in Dubai
Purchasing property in Dubai presents an exciting opportunity, whether you're eyeing a cozy studio or a sprawling villa. However, the key to a successful acquisition lies in meticulous financial preparation. RealTrust is here to guide you through the essential steps to prepare your finances for buying property in Dubai.
Save for a Deposit
Securing your dream property in Dubai begins with saving for a deposit. For off-plan properties, buyers typically need to provide a down payment of 10-20% of the purchase price. If you're opting for a ready property and planning to use a mortgage, expats are required to put down at least 20%, while UAE Nationals may need only 15%.
Consider setting up a dedicated high-interest savings account to accumulate your deposit. This strategy not only helps segregate your funds but also allows your savings to grow through accrued interest. Commit to regular contributions each month, treating this saving as a fixed, non-negotiable expense.
Account for Additional Fees
The journey to owning a home in Dubai includes various additional costs such as Dubai Land Department fees, agency commissions, and mortgage-related fees. Overall, these could add up to approximately 5%-8% of the property’s purchase price, varying by whether the property is off-plan or ready.
Tip: Some banks offer the option to include certain purchasing fees within your mortgage, potentially easing your initial financial burden. A knowledgeable Mortgage Consultant from RealTrust can advise you on these options.
Reduce Your Debt
To improve your chances of securing a favorable mortgage, it's crucial to minimize your debt. Lenders assess your debt-to-income ratio to evaluate your financial health. Prioritize paying off high-interest debts, such as credit card balances, to enhance your credit score and free up income for saving towards your property purchase.
Budget for Future Expenses
Owning a property involves ongoing expenses, including insurance, maintenance, and service charges. Ensure these costs are integrated into your budget, allowing you to comfortably manage them alongside your mortgage payments.
Utilize RealTrust’s Mortgage Calculator to estimate your monthly mortgage payments and gain further confidence in your property purchase decision.
Improve Your Credit Score
Your credit score significantly influences your mortgage eligibility and the interest rates offered. Maintain a healthy credit score by ensuring timely payments on your credit cards, loans, and utility bills. Keep your credit utilization low and address any overdue debts. Regularly reviewing your credit report for inaccuracies is also advisable.
Align with Your Long-Term Goals
Consider how purchasing a home fits into your broader life plans. For those planning a short stay in Dubai or seeking living flexibility, renting might be a more suitable option. Explore more on this topic in our blog post: “Is it better to buy or rent a property in Dubai?”
Consult with a Mortgage Advisor
Navigating the mortgage landscape as a first-time buyer can be complex. Consulting with an experienced mortgage advisor is crucial. At RealTrust, our advisors can provide insights into the best mortgage deals suited to your financial situation and help streamline the application process.
Conclusion
Preparing to buy property in Dubai requires disciplined planning. By following these steps, you're not just closer to acquiring your dream home but also ensuring a smooth and informed purchasing experience with RealTrust. Dive deeper into your home buying journey with confidence and expert support from RealTrust.
