Frequently asked questions

What is a mortgage pre-approval?

It’s a letter issued by the bank after reviewing your loan application, and approving your requested amount in principal and conditional on a valuation being undertaken on the property you wish to buy. This pre-approval is valid, in most cases, for 60 days, thus offering you the confidence that you will get your loan on time once you decide which property you are buying and all further checks by the lender are complete.

How will my salary transfer or non-transfer affect my mortgage?

Banks may offer a slightly preferential rate if you commit your salary transfer to them. Some rates are conditional on you transferring your salary to them, but not all.

Are there any fees I need to know about for getting a mortgage?

Yes, there is a bank valuation and a bank processing fee. The bank valuation fee ranges from AED 2000–3000, with an additional 0-1% bank processing fee. There are also other fees involved in the purchase process including fees payable to your real estate agent, fees payable to the Dubai Land Department or Abu Dhabi Municipality, and mortgage registration fees. When you apply for a mortgage through Kafu, your assigned mortgage expert will break down the fees for you. You may also be able to borrow a percentage of your fees as part of your mortgage.

What is the difference between fixed and a variable rate?

A fixed rate means the rate of interest on the mortgage you pay typically stays the same for a specific period of time, between 1-5 years.Once the fixed period ends, you are then moved to a variable rate. On the other hand, variable rates refer to the interest rate that you have to pay linking to one, three, or six-month EIBOR, with a percentage fixed by the bank.This means the interest rate can vary from time to time, depending on the EIBOR. Sounds confusing? Why not get in touch with Kafu for the easiest mortgage process in the UAE.

Can I incorporate the property purchasing cost into a mortgage?

That depends on the bank. Most banks do allow the option of incorporating a percentage of the associated fees involved in the purchase cost into the mortgage. This helps save the upfront costs significantly.

Why should I choose a bank through Kafu?

We do all the hard work, so you don’t have to. We have access to the whole UAE mortgage market and work with all lenders to make it easy for you to compare offers and find the right mortgage for you. When you use Kafu, our algorithm compares 500 products to find you the perfect deal based on your profile. This can be done anytime 24/7.

Can I permanently leave the UAE if I have a UAE mortgage?

Yes, you can. With most banks, you just need to let them know that you’re leaving. You and the bank will then decide on how the mortgage will operate moving forward. You should always inform your lender in the name of transparency.

What are the mortgage rates in the UAE?

Mortgage rates change in line with Central Bank interest rates and new rates are frequently brought to market. If you want to know the latest rates and best products for you, why not let one of our mortgage experts help you.

Why do I need a mortgage pre-approval?

When you start to view properties, the first question a Real Estate agent will ask you is ‘do you have your mortgage pre-approved? If your answer is yes, this shows that you're a serious buyer and Real Estate Agents and sellers are more likely to take your offer seriously.

What mortgage products are available in the UAE?

There are several different types of mortgage available. Residential mortgage, Non-resident mortgages, and Commercial mortgages are all available. Variable and fixed-rate mortgages are offered as well as the option of taking Islamic mortgages for those who wish to finance a property purchase in a Sharia compliant manner.

Should I ask my bank directly for a mortgage?

This may seem like the easiest idea, however it may not secure you the best rate on the market for your circumstances and preferences. When you use Kafu, our digital platform makes it easy for you to compare offers and matches you with the most suitable products based on your profile to help you make a wise decision. We also recommend that you don't have your salary with the same back as your mortgage. Want to understand why? Be sure to ask your Kafu mortgage manager

If I use Kafu, will I get a lot of phone calls from multiple banks?

Not at all. In a few simple steps, we’ll match you to the most suitable products for you from across the UAE’s banks. Then it’s up to you to select which bank product you want to proceed with, and we’ll do all the work (and all the phone calls) to get you a mortgage in the fastest and most efficient way possible.

Can I trust you with my information?

Yes! Security is our utmost priority. We use the same technology as banks to encrypt our site and your information. We only share your information with your selected bank, never with third-party sites or other banks.

How old do I need to be to get a mortgage in the UAE?

At least 21 years old and not more than the age of 65 if you’re an employed expat or 70 if you’re a UAE national or self-employed.

If I'm self-employed, can I get a mortgage in the UAE?

Yes. Even though some banks have a preference for employed applicants our platform will compare offers across all banks and match you to the right products and banks suitable to your profile.

Do I need life insurance to get a mortgage?

Life insurance is mandatory and, in fact, most banks will ask you to arrange the insurance with them before releasing the funds to buy the property.

If I fill in my information with Kafu, what am I committing to?

Nothing! All we’ll do is immediately match you with the products and banks most suitable to your profile. We want to get you the best deal on the market. Once you select a product, we will contact you to find out more about your home buying needs and help you during this journey as much as we can. The best part – this service is free, and you are in control of the process at all times.

Can I buy a property with my spouse?

Yes, as long as you can show the ability to repay. In some cases the lender may ask to see your marriage certificate as proof that you are wed.

What is EIBOR? How do I check the rates?

EIBOR stands for Emirates Interbank Offered Rate, which is the interest rate at which banks lend money to each other. You can check these rates directly via the Central Bank’s website.

How long is a mortgage pre-approval valid for?

Typically 60 days however it differs between banks and lenders. Some may offer you a pre-approval with a 30 day or 90 day validity.

Will I be eligible to take a personal loan for the down payment?

No, Central Bank regulations don’t allow you to take personal loans to pay the down payment. As well as the down payment there are significant fees involved in the property purchase process. You can opt for a mortgage which includes a percentage of your fees to reduce the burden of the cost upfront. However this option will increase your monthly repayment amount. Speaking with a Kafu expert to understand what your payments look like with and without fee assistance.

I want a mortgage to purchase an off-plan property, can Kafu help me?

Yes, we can. However, keep in mind that there are minimal options for mortgages on off-plan purchases and they are often limited to projects which are being undertaken by larger and more established developers. The more likely scenario for off-plan purchases is that you enter into a payment plan with the developer agreeing a payment schedule to pay a percentage of the property before handover. You can then opt to mortgage the balancing payment.

What type of properties can I purchase using a mortgage?

All types of properties such as apartments, townhouses and villas. If you wish to mortgage a commercial property, there are different types of commercial mortgage available. Kafu is one of the few brokers in the UAE who specialise in both residential and commercial financing. We even have our own commercial finance department.

When getting a mortgage, why is the bank asking me for a security cheque?

The bank will hold a security cheque in the instance you fail to make repayments on your mortgage. If this happens, your bank will present the cheque and when it bounces, they can initiate legal proceedings to take your property to pay off the outstanding debts.

What is a follow on rate?

It’s an interest rate that your mortgage reverts to after your fixed-rate period has ended. This rate is linked to the EIBOR, with a fixed percentage by the bank, just like the variable rate. If you are nearing the end of your fixed rate, it is a great idea to look at refinancing to see if there are better rates than the follow on you are being offered by your current lender. Kafu can also help you with your refinancing needs.

What is an NOC and why do I need one?

NOC stands for no-objection certificate. This is required from the developer as proof that all the utilities and service charges have been paid, thus giving a clearance to issue the title deeds and transfer the property. It also shows that the developer has no objection to the other person buying his property.

What are the costs of purchasing a property in the UAE?

That depends on the Emirate you are purchasing in. Here is a list of payments you need to make along with the cash deposit. Real Estate Agent fee: 2% of the total cost of the property. Land department fee: 4% of the purchased price and an additional AED 580 (up to 2% for Abu Dhabi Municipality)Bank processing fee: up to 1% of the amount borrowed. Trustee fee: AED 4,000Mortgage registration fee: 0.25% and an additional AED 290 of the mortgage borrowed. (0.1% in Abu Dhabi)Valuation fee: AED 2500-3000 + VAT.

How do I choose the best mortgage product?

Use Kafu. No, seriously, in just a few minutes, our digital platform matches you with the most suitable products based on your profile and selections. Our expert mortgage brokers then get in touch so we can help you obtain a mortgage in the fastest and easiest way possible.

Does my bonus or other allowances count when I am applying for a mortgage?

Yes, if your bonus is guaranteed and clearly mentioned in your salary certificate or contract. Your housing allowance is also counted if clearly mentioned in those documents. Even though the down payment is still required, the allowances can contribute to the mortgage by offering more affordability and increasing your chances of borrowing a higher amount.

Can I get a mortgage to buy a plot of land to build a property?

Yes, you can. Contact Kafu, so we can help you secure your plot-related mortgage.

Will my bank charge a penalty for settling my mortgage early?

It depends on the bank, but most banks do charge a penalty on settling the mortgage amount early. This penalty is fixed by the UAE Central Bank and is charged at 1% of the remaining balance, capped at AED 10,000.

Will my bank charge me for buildings insurance?

Yes. It varies from bank to bank but you will find out from your Kafu quotation well in advance what the amount will be.

Will a credit check be performed for a mortgage?

Yes. All banks perform a credit check before approving your mortgage. You can access your own credit report from the Etihad Credit Bureau for a small processing fee if you would like to check it in advance of applying for a mortgage

What documents do I need to apply for a mortgage?

This depends on your situation and whether you are applying as salaried or self-employed; resident/UAE National or non-resident. If you are applying as a salaried resident or UAE National, the list of essential documents include: A copy of your Emirates ID, passport, and visa. Salary certificate addressed to the bank. Bank statement and payslips of the last six months. A copy of your tenancy agreement or Utility bill. If you are self-employed you will also be asked to provide company trading documentation. If you are applying as a non-resident the documentation may include a credit report from your home country but required documentation may differ depending on your country of residence. Your Kafu case manager will let you know exactly what documentation you need to provide regardless of your applicant status, and help you submit these to us via our digital portal.

How can I calculate my mortgage affordability?

You can use our mortgage calculator to see what a typical monthly repayment may look like but the bank will calculate your affordability according to their own set of lending criteria, which varies from bank to bank. A typical rule is that 50% of your monthly income is considered when calculating mortgage affordability. After that, a stress rate is applied to confirm if you can still afford the mortgage if rates were to increase.

What is a title deed?

It’s a registered document showing the ownership of the property at the Dubai Land Department or Abu Dhabi Municipality. When you buy land on a mortgage, your name will be included in the title deed as the owner of the property. Keep in mind, the original title deed document is kept with the bank until the mortgage is fully paid.

What is the down payment required to buy a property?

If the property costs under AED 5 million, the down payment is 20% for expats and 15% for UAE nationals. However, if the property is over AED 5 million, expats have to pay a 30% down payment, while UAE nationals would pay 25%.

How long will it take to get my mortgage pre-approved?

The pre-approval usually takes 5-6 working days. However, securing this pre-approval might take a longer time, depending on the bank and your current situation. Once this pre-approval is issued and the property you want to buy is finalised, we will do everything on your behalf, so you can sit back and relax, until the process is done.

What is an Islamic mortgage? Can Kafu help me get one?

Unlike a conventional mortgage where the banks charge you interest, which is forbidden under Sharia law, an Islamic mortgage works by the bank buying the property on your behalf and leasing it back to you for a profit. We work with many of the UAE’s banks and you can choose both conventional and Islamic mortgage products when you start your Kafu application.

How much money can I borrow for a mortgage?

The amount you can borrow entirely depends on your liabilities and income. If the property's value is under AED 5 million, you borrow up to 80% as an expat and 85% if you’re a UAE national. If the value is above AED 5 million, the percentage decreases to 70% for expats and 75% for UAE nationals. A quick calculation is that you can borrow 7 times your annual salary as a maximum or to the LTV limits mentioned above. You can also use the Kafu mortgage calculator to determine how much you could be eligible to borrow and what your monthly repayments might look like, though be aware your exact offer from the bank may be different as it will be specific to you and your circumstances.

What is the LTV?

LTV is the Loan to Value. This is a calculation of the % of the property value you are taking a loan for. For example if you are borrowing AED800k on an AED 1 mil property. This is at 80% LTV.

I want a mortgage in the UAE. What is the process?

If you're reading this, then you are in the right place. Use the Get started button and complete the steps. It will take you about two minutes to give us all the details we need. Don’t worry at this point, you are not applying for a mortgage or undertaking any commitment, we’re just gathering the essentials to match you with the most suitable products and banks. Our team will then contact you to assist you further, walk you through your finance options, and make the application to your preferred bank on your behalf. After that we manage all parts of the process for you with the banks and various entities, so you only have to work with one point of contact, until the ownership of your property is complete, and you have the keys in your hand!

What is an MOU, and why do I need one?

A Memorandum of Understanding, which you may see referred to as a FORM F is an agreement set by the real estate agent, which outlines all the necessary terms and conditions signed by the seller and buyer while purchasing the property. Kafu will happily help and advise you before you sign the MOU.

Can I take a mortgage to make the final payments directly to the developer if I am buying off-plan?

Yes, you can. Any payments you’ve already made will be considered part of the down payment.

Can I make overpayments on my mortgage? Will I be penalised?

That depends on the bank. Typically, most banks allow overpayments without penalty of up to 30% of the remaining balance. If you chose the fixed-rate mortgage, overpayments are only allowed after the fixed-rate tenure has ended.

What is the difference between freehold and leasehold properties?

Freehold ownership refers to the fact that the owner of the real estate owns both building and land in perpetuity. Leasehold ownership on the other hand means that the owner owns the building only, the land on which it sits is owned by the ‘landlord’ and is leased to the property owner for a defined period of time, normally 99 years.

Can Kafu help m to find a property?

Yes we can. However we do not list properties. Instead our Concierge team work with you to understand your requirements and identify properties in budget and to your specification. We then work with our extensive network of over 1500 trusted real estate partners to coordinate viewings and close on the unit you love. We will liaise with the sellers agent at all times, meaning you still only have to work with one point of contact.

Is your concierge service free?

There is no additional cost involved with using our Concierge service. When you buy a property you will need to pay a fee of 2% of the property value to the real estate agent. We take a percentage of that fee from the agent.

What is conveyancing

Conveyancing is the part of the property purchase process where all the legal documentation between buyer and seller is co-ordinated. Kafu has an in house conveyancing team who will work with the seller's agent and your real estate agent to prepare all the legal documentation required. This includes arranging NOCs from the developer, deposit holding, final settlements, right the way through to title registration and transfer. Kafu also offers conveyancing services in addition to our free mortgage service. Our conveyancing services are priced below the market average at just AED 5,000 to save you money without compromising on trust or expertise. Our conveyancing team can also help you with your Power of Attorney (POA) needs to keep things moving in your absence. There are additional fees involved in the drafting, translating, and attesting of a power of attorney arrangement, speak to your Mortgage Manager or Property Concierge for more information.

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