UAE Home Loans Updates from Dubai Mortgage Broker

Wednesday

Feb032010

I’m very excited to be a part of Beeyoot.Com’s blog. In the true spirit of a Glass House - being transparent and able to see through it - I will try to post regular updates on important issues affecting the UAE mortgage scene.

Of course, they best way to get the most relevant information is for you to send us your feedback and comments. You can always use the contact form here or contact me directly at dean@independentuae.com. Your questions will be answered directly in a blog format here to give the benefit to all our readers.

Here is some general news on mortgages for the start of 2010:

Standard Chartered have last month lowered their LTV to 70% from 75%, not surprisingly! As they have been the leading lender in 2009 for refinance cases and equity release, with fantastic rates of 6.5% (lowest in the market). Currently they are holding back on any further refinance or equity release.

Mashreq have this month increased their LTV to 80% and reduced their rate by 25 bases points, making them one of the more aggressive lenders alongside DIB, who are currently offering the lowest rate of 6.72% and 80%LTV.

Following the trend on fluctuating rates ADCB have recently dropped theirs by 25 bases points and currently lending up to 85%on market value for master developers.

Lastly, if you have a TAMWEEL mortgage, you can switch and save on your mortgage to an interest of 6.75%!

All and all a good change for mortgages from 2009. For further news and current promotions please check our web page. www.independentuae.com

Until next time!

Dean Biddulph

Senior Financial Consultant at Independent Finance

10 Comments | By

Admin

Reader Comments (10)

Dean I am interested in the switching of mortgages, is this only applicable to Tamweel, do you think its wise to switch now with Tamweel lowering their rates?

February 3, 2010 |

Kiki

Switching your mortgage would depend on a few factors. Firstly has the value of your property been upheld? The switch will really only make sense if your property value is at least 20% higher than your outstanding mortgage, an easy way to estimate is if you purchased between 2006 and December 2007. With regards to the rate lowering, most banks rates are usually lower than finance providers like Tamweel, so it will almost always make sense to change if you are getting a 1% to 2% lower rate, especially if it is free to switch. What a deal!

February 3, 2010 |

Dean Biddulph

That doesnt actually sound too bad, like you say. Will it be expensive to switch? and where does Independent Finance fall into the picture?

February 3, 2010 |

Kiki

What is the catch to these low rates from the banks, and what would you say is the best deal or is a better deal? What should I be looking out for?

February 3, 2010 |

Gina

There is no catch, this is a trend with variable rate and they changed based on market conditions. The banks have to compete with other lenders out there, and the above mentioned switch with Tamweel is a promotion that will not be available forever. Banks and lenders will always have small promotions to make their products seem more attractive than the other. We at Independent Finance are mortgage specialists and we have extremely strong links within the banks, what i can recommend is that you arrange a one one with either of our consultants or a broker similar to myself to explain current promotions and products in detail.

February 4, 2010 |

Dean Biddulph

Dean. I heard that there are no fix rate mortgages in Dubai. Also banks like NBD aka EmiratesNBD have been known to back out of their pre-approvals and final offer letters, and had even ask for the money back to their existing clients since the market has has dropped. Since you seem very knowledgeable of mortgages, could you verify if this is true for the blog readers here? If this is in fact true how would you expect the people wanting to buy a house trust the banking sector? Also, if you personally had a choice would you ever buy a house in Dubai and have a mortgage on it too?

February 4, 2010 |

Gary

Gary, all i can advise is for you to speak to the professionals next time, and you will not fall in the same trap. If NBD are asking for money back, there agreements must be backing them up.
I have actually heard of this in the past and it should not be allowed if you are not missing any EMI payments or have lost your job. With regards to fixed rate mortgages, you are correct there are no options on this in UAE, there have however been in the past and generally these rate are higher than the variable rates have reflected for the past three years.
i would most definitely purchase in Dubai, obviously considering the capital available to me and judging on when a good time is to purchase, Dubai can be like any market out there. Dubai is no longer the "flip" market so it would depend on what kind of investment you want to buy, investing in Dubai right now would be a long term investment perfect for the end user.

February 15, 2010 |

Dean Biddulph

Dean, after reading your post I got the impression that the position of investors is not hopeless, as LTV as LTV increases and the bank rates reduce. However, I wonder if the attitude of lenders got better in regards of abroad investors who are not residents of the UAE. Do they have any chances to be to be provided mortgage at the moment?

February 16, 2010 |

Elena

Hi Dean,

I am living in Qatar and im interested in buying an aprtment in Dubai at the Marina if I can get one for a good price. As a Qatar resident, would I be eligible for a UAE mortgage?

March 25, 2010 |

Richard

Hi Richard

At the moment non resident lending in Dubai is not extremely favorable with most lenders, however there are a couple of options, expect low LTVs and high rates. An alternative to purchasing property in Dubai and financing would be to release equity in any existing property assets that you might own abroad and purchasing in Dubai with the equity released.

March 31, 2010 |

Dean Biddulph

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