Many residents are looking to own a property instead of continuing renting in Dubai. Although the property agents assure the buyers to give them required bank finance, they often urge them to sign a memorandum of understanding first.
Home loans are easy to get in Dubai if you have all the necessary documents with you. On the other hand, home finance advisors warn against signing these memorandums until and unless a person has a pre approved home loan from the bank itself. This is not that complex. For those who are looking to take bank finance for completed units, here are the proper guidelines compiled
Take a Pre- Approval from the bank
Picture Courtesy: www.monarchbank.com
Following Documents are to be needed:-
- Visa page and Passport copy
- Salary certificate which is addressed to the respective bank
- Details of all the loans and liabilities
- Bank statements of last six months from Personal Account
- 1 copy of title deed with floor plan
Submit these and you will get the pre approval letter in 3-5 business days from the bank.
Sign Memorandum of Understanding with the Seller
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The buyer and seller along with their agents must sign a MoU which states the time for completing the property transfer after which the buyer makes a 10% down payment cheque in the name of the seller, which his agent holds. If the buyer back out of the deal, it is cashed only then.
Apply for the approval from the bank
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It can be asked of the buyer to provide the no objection certificate for the mortgage registration from the bank to the developer. The KYC form also needs to be filled by the buyer only. After submitting the above two documents, both the seller and the buyer have to go to the developers office to apply for NoC which is valid for 15 to 30 days which also depends upon the developer.
Registration Trustee
Picture Courtesy: www.aib.gov.uk
The bank takes an appointment with registration trustee after the NoC is issued. The buyer is asked to take out a mangers cheque for the down payment amount which is 25% of the property value for first property purchase, a manager’s cheque of 4% of property value plus DLD registration charges. For the transactions below Dh 500,000, registration trustees charges Dh 2,000 and 4,000 for the transactions above 500,000. The registration fees are 0.25% of the mortgage amount which is to be paid by a cheque.
Buyer and seller both are to be present on the scheduled day and time. After the buyer pays the registration fee, mortgage registration charge, trustee charges, the trustee verifies and enters all the data on the website. Then both of them, the buyer and the seller sign the official documents of transfer. The title deed is issued with the bank which takes the original and hands over the attested copy to the buyer. After which the buyer pays the agent’s commission, now a days through a manager’s cheque.
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