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Buying a property in the UAE with a mortgage.

The majority of purchases in the UAE are made by cash buyers, mainly investors who tend to rent out their properties. The mortgage market is primarily utilised by end users.

However more and more savvy investors, who appreciate the security of the lending market here in the UAE are turning toward lending based purchases.

As a mortgage brokerage we can see why people would want to buy for cash, no overheads, maximising rental yields etc. However why put all of your eggs in one basket? Why throw 2,000,000 AED into one property when you can utilise two mortgages at 50/50 and buy two properties utilising the same 2,000,000 AED. Yes the properties now have a liability which needs to be serviced which minimises net profit from rental income, however there are now two assets growing in value!

Let's take that a step further, using that same 2,000,000 AED and structure it the right way, you could potentially buy 4 to 6 one bedroom apartments / studio apartment combinations, by utilising lending via mortgages. Ok so perhaps slightly less as we need to take in transactions fees etc, but i think you see the point we are trying to make!

Why utilise a broker?

A mortgage is often the biggest financial commitment of a person's life. Normally we seek advice from doctors, lawyers and accountants without questioning the need for their services, why should you take a risk trying to source a mortgage by yourself without the help of a mortgage adviser. Here at Casa Capital we have access to all the leading banks in the UAE, meaning access to hundreds of mortgage products and solutions. Although most clients are very rate driven, there are many other factors that need to be taken into consideration when sourcing a mortgage.

Finding the right mortgage?

There are three steps to finding the right mortgage for any client:


The first step in the process is to undertake a call or meeting with you where we will conduct a full fact find to understand your requirements further.


The second step is for us to analyse the information we have gathered in order to start filtering out the banks that are not applicable.


Based on the information we have collected, the research we have undertaken and the analysis of the products available we will then make a recommendation.

Types of mortgage available

There are an abundance of products and choices available in the UAE market. Some banks will offer discounted fees if you decide to bank with them instead of your existing bank of choice. This is known as salary transfer.

Some banks and institutions will offer the ability to make overpayments free of charge and some even allow you to exit or pay off the mortgage without cost, however no single bank does it all!

In an ideal world it would be great to have a bank offer the lowest rate, the lowest costs and charges, however where a lender appears great in one aspect it could be less appealing in another. That is why it is very important to understand all of your requirements fully before making a recommendation. There is no point in recommending a low rate that comes with mandatory salary transfer if you are unable to transfer salary due to other loan commitments as an example!

The main types of mortgage when you consider rate are as follows:


A fixed rate mortgage is where the bank fixes the interest rate for between 1 and 5 years which protects the rate against fluctuation in the Emirates Interbank Offer Rate (EIBOR).


This type of rate consists of a fixed margin stipulated by the bank plus the prevailing EIBOR rate which changes daily (although most banks use a 3 month rolling average rate). If you believe rates will decline then tracker type products are normally a good option.


Some banks will offer a variable rate, an internal rate which is set by various internal departments within the institution. Although variable rates are no overly transparent, they can sometimes be cheaper than fixed rates.

Why not call us for a no obligation consultation to find out more