Discover your mortgage affordability in Dubai, UAE with our Mortgage Calculator. Calculate monthly payments, interest, Upfront, fees, and all the important details and plan your property investment confidently.
Mortgage Calculator UAE
Approximate Monthly Cost AED
Cost Breakdown AED
Financing Details AED
Financial Breakdown Pie Chart
Yearly Repayment Schedule AED
|Year||Principal||Interest Paid||Principal Paid||Balance Amount||Loan Amount Paid (%)|
Key Considerations Before Getting a Property Loan in Dubai
Understanding Interest Rates:
Ensure you understand the various interest rates available and select the one that suits your needs best.
Comparing Fees and Charges:
In addition to the Property Loan amount and interest rates, carefully compare additional fees such as arrangement fees and early settlement charges.
Obtain pre-approval before making any down payment to streamline the home-buying process.
Balancing Down Payment and Savings:
Avoid putting all your savings into the down payment; retain some for unexpected expenses like registration fees and land department fees.
Do not overlook the importance of securing home insurance for added protection.
Using a Mortgage Calculator (Housing Finance Calculator):
Leverage a home loan calculator to determine your approximate monthly instalments, making informed financial decisions.
Evaluating Affordability for a House in Dubai:
- Assess whether you can comfortably manage a 20%-25% down payment relative to the property’s value.
- Ensure you have sufficient funds to cover additional expenses.
- Check your Debt Burden Ratio (DBR) – it should be below 40%.
- Verify that your credit score is above 700.
Tips for First-Time Home Buyers in Dubai
- Confirm you can afford a 20%-25% down payment.
- Remember that banks typically don’t provide Real Estate Loans for additional fees.
- Start saving for processing fees.
- Don’t exceed your budget when selecting a property.
- Thoroughly research and understand interest rates.
- Seek pre-approval before embarking on your property search.
Importance of Calculating Your Home Mortgage
In the UAE, home mortgages can extend up to 25 years, making prior planning crucial. Calculating your home mortgage is essential because it helps you:
- Estimate your monthly costs.
- Prepare and budget for monthly expenses.
- Determine the required down payment.
- Understand the Housing Mortgage repayment duration.
- Compare interest rates across different home loan products.
Understanding the breakdown of the outputs
|Approximate Monthly Cost:|| Interest: This is the approximate monthly interest payment on your mortgage.|
Loan Amount: The approximate monthly payment that goes toward repaying the principal amount of your mortgage.
|Land Department Fee: 4%||This is a fee of 4% for the UAE Govt Land dept, typically calculated as a percentage of the property value, that is payable to the Dubai Land Department when purchasing a property in Dubai.|
|Registration Fee: 4%||This fee is also calculated as a percentage of the property value and is related to property registration.|
|Mortgage Registration: 0.25%||A fee associated with registering the mortgage with the relevant authorities.|
|Estate Agency Fee: 2%||This is the fee charged by the estate agency or real estate agent involved in the property transaction.|
|Valuation Tax: 4000 AED||This could be a tax or fee associated with property valuation.|
|Total Purchase Cost:||The sum of all the costs and fees associated with purchasing the property, including land department fees, registration fees, and others.|
|Down Payment:||The amount of money you plan to pay upfront as a down payment on the property.|
|Required Upfront:||The total upfront payment required includes the down payment and other fees.|
|Loan Amount:||The total upfront payment required, includes the down payment and other fees.|
|Processing Fee: 1%||The total upfront payment required includes the down payment and other fees.|
|Total Interest Amount:||The total amount of interest you will pay over the life of the mortgage.|
|Total Amount Payable:||The total amount you will pay, including both the principal loan amount and the interest, over the life of the mortgage.|
Mortgage valuation Fees for properties in the UAE
|Real Estate Unit Fee (not to exceed AED 10,000)||AED 2,000|
|Knowledge Fee||AED 10|
|Innovation Fee||AED 10|
By considering these factors, you can make informed decisions and ensure your home purchase aligns with your financial goals or visit the UAE Govt land website for more.