What I Wish I Knew About Getting a House Loan in Dubai: Homeowner Insider Tips

Getting a house loan in Dubai might seem straightforward at first, but there’s a world of insider knowledge that can make or break your mortgage journey. While the mortgage loan basics of down payments and home loan interest rates are common knowledge, it’s those hidden nuggets of wisdom from seasoned homeowners that could save you thousands in the long run.
To help you be better equipped, we put this question out and homebuyers responded. Here is a look at what first-time property owners wished they had known about getting a house loan in Dubai before applying.
What Home Buyers Wish They Knew On:
1. Getting a House Loan in Dubai
My experience is that banks here take REALLY long time to do anything, so if you plan to buy in 3-4 months, you should already look for mortgage brokers in Dubai who help you with that. You can also go directly to the bank too.
If it’s a ‘mortgage to mortgage’ purchase, you may start paying your mortgage 6 to 10 weeks before your get possession of the property.
Don’t pay conveyance fees to the agency. Not required. Negotiate. Be tough on this.
For those that don’t understand it, this conveyance fees is essentially money that brokerages charge you for work that’s actually supposed to be done by your agent, and what you’re paying the agency fee of 2% for to begin with. They charge this so they can hire someone to push papers while their agents have more time selling.
Go through mortgage brokers in Dubai that you can trust and that doesn’t charge for their service (they get paid by banks). They typically know a lot more than you can find or understand by yourself (i.e. bank policies, hidden charges, service standards, where you will benefit or where you get penalised). And, if you find one that acts in your interest it can be a blessing. One way to find a good broker is to look at google reviews of the company. They give a lot of information.
2. Mortgage Rates in Dubai
Mortgage rates in Dubai change daily, therefore, so be ready to lock in a rate as soon as you find one that you like. Mortgage rates are either fixed or variable. You might choose the flexible rate if the market anticipates a future decline in interest rates, but this is a rare occurrence, so always choose the fixed rate.
Always go for the lowest margin, that’s what you end up paying for the largest part of the loan. For example, if you get a 3 year fixed rate on a 25 year mortgage, you’re paying the margin for 22 years. Hence that number matters the most.
Get a mortgage that has relaxed partial or early settlement options. Being in Dubai, chances are you will either sell your property in the next few years or you will end up paying off your loan early. As per data that’s what everyone who’s ever had a mortgage here has done, literally.
It’s OK to….
Shop around for mortgage rates when you’re closer to getting ready to lock in a rate. You are not obligated to work with the lender who pre-approved you.
Switch banks. If you’re unhappy with your current home loan interest rate, you always have the option to get into a longer fixed rate mortgage. If you’re actually paying that much more, you would recover your cost of switching in no time and start saving money. However, I can tell you for sure you will be here 3 years from now, unhappy about the margin you have to pay then if the rates drop while you’re on the fixed rate.
Getting a House Loan in Dubai: Bottom Line
Plan ahead and shop around.
The journey to securing a house loan in Dubai doesn’t have to be overwhelming. While there are certainly challenges to navigate, being armed with the right knowledge about mortgage rates and working with experienced brokers can make all the difference. These homeowners’ tips will help you approach your mortgage loan journey with more confidence and clarity.