Purchasing in Dubai is relatively easy with few costs currently applied by the government.
On deciding on a property you will be asked to make a reservation payment. This payment may be non refundable so before passing over funds you should be sure you know where funds are going to come from for completion.
Many developments are paid for in staged payments but most developers will look for an initial deposit of between 10-15% of purchase price. Most properties are sold off plan.
There are few mortgage facilities available in Dubai at present and most are linked to specific developers and developments. This eligibility should be checked if mortgage finance is going to be required for completion. The security you get from this is that a bank has already checked the development title deed security, and is happy to lend against it.
There are no purchase taxes at present but you will have to pay registry costs of around 1.5% of the purchase price to register property in your name and approximately 0.25% of loan amount to register mortgage deed. Sellers will also charge a transfer tax which will vary considerably from 1% to 7% of purchase price so you should always check what transfer tax will be applicable to your purchase.
It is advisable although not necessary to appoint a Lawyer to act on your behalf. There are still title issues in Dubai and therefore having an independent adviser acting on your behalf is wise.
We will charge a 0.50% mortgage processing fee on top of our normal broker fee. This fee is payable upfront and refundable bar £ 250 should the mortgage not complete.
Product Dubai 1
80% Interest Only (Max 4 Applicants)
Most Nationalties covered
Agreed Developers only
Emaar, Nakheel, Union Properties, Dubai Properties
See Eligibilty file for development names covered
Maximum age |
Mortgage must be paid up in full by age 70 |
Maximum LTV |
70% of valuation or purchase price whichever is lower for properties under 12 months old./ 70% of valuation if property more than 12 months old. |
Maximum loan size |
N/A |
Maximum term |
15 years |
Repayment type |
Repayment only |
Compulsory products |
Buildings insurance |
Bank arrangement fee |
1% of lending payable after formal offer an before completion. Extra 0.25% if property in company structure |
Interest Rate |
Equivalent to Quarterly Euro/LIBOR plus 2.5% quoted on application |
Rate review and payments |
3 monthly in arrears |
Income criteria |
Existing UK liability and new liability must not exceed 50% of proven net income or 5 times gross |
Redemption penalty |
0% |
Credit search UK |
No |
Valuation (Appraisal) costs |
$ 700 |
Communication fee |
$ 150 |
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Processing fee |
0.50% of lending payable up front and refundable if loan does not complete |
Currency Switching and Multi currency choices available
Sterling, US Dollar, Yen, Swiss Franc, AUD, NZD, CAD, Singapore Dollars.