New Delhi [India], October 13 (ANI/ATK): Buying a property in the UAE is a dream for everyone.

However, recent new policies that include the expats as well has made it easy for everyone. Not to mention, UAE follows an open door policy to increase its economic growth.

Thus, people who do not even live in the UAE can also invest. Moreover, not many people have the correct knowledge about mortgage investment in the UAE.

Therefore, to provide you with proper insight into the process ahead is a concise guide for you to make an investment in a mortgage in the UAE. So, let's jump into the mandatory thing that you should know about before making an investment.

About Mortgage In The United Arab EmiratesA mortgage is a loan process through which the financial institutes lend you some financial aid in exchange for the papers of your asset (property). Also, the title of that newly bought property is taken by the lender (bank) until you pay off the debt in full. Moreover, the amount of the loan is decided on the basis of the value of the property that you want to buy.

Furthermore, investing in mortgages in the United Arab Emirates for the country's citizens is easy, and there are only some small conditions that they need to fulfil. However, it is a totally different story for an expat.

Lastly, the mortgage in the UAE is given on two bases that are: Fixed Rate and Variable Rate. Both of these are further explained in an elaborate manner for your better understanding.

This article explains the various aspects of investing in the UAE's mortgage for an expat. So let's just discuss that only.

What Are The Types Of Mortgage in The UAE?There are two types of mortgages, the first one being the Fixed Rate and the second being the Variable Rate. In a Fixed Rate mortgage, the interest rate is fixed throughout a certain period of time. Whereas, in Variable Rate mortgages, it varies from time to time.

Furthermore, a Fixed Rate mortgage is more suitable for everyone as the interest rate remains the same. While in the case of Variable Rate mortgages, the interest rate keeps on increasing after a certain period of time.

However, Variable Rate mortgages are suitable for times when the interest rates are going to fall in the near future. So, before opting for any of the two, you must study and analyse the financial market for the near future.

Mortgage Rates In UAEThe mortgage rate of any country depends upon its current economic situation. Therefore, it can change rapidly during a certain period of time. However, the lowest interest rate for fixed-rate is: for one year it's 2.75%, for three years its 3.89%, and for five years its 3.99%.

Criteria To Get A Mortgage In The UAE For An Ex-patAs an ex-pat, there are certain criteria's for you to fulfil before applying for a mortgage in the UAE. Also, keep in mind that each of these requirements is important to get a mortgage loan. Anyone trying to convince you otherwise could be a scammer, so beware of that.

Job Or Work StatusYou need to have work experience in your current job at least for six months to a year. Thus, if you have only been working for a month in your current job, you are not eligible for a mortgage loan.

Moreover, if you are self-employed, then you need to have a good running business for the last two years.

Clean History Of CreditYou need to have a clean history with your previous creditors. For instance, you need to have a good track record of your credit history which reflects that you paid your debt on time. Moreover, having a credit history can aid you in getting a mortgage loan compared to having no credit history at all.

Loan Tenure And AgeThe loan tenure for large properties is 25 years and not more than that. Thus, your monthly instalment will be based on this period of time only. Moreover, anyone who is older than 75 years won't get a loan. Also, during the 25 years, you can't turn 75; if that's the case, then also you won't get a loan.

Documents Required To Get A Mortgage In The UAEObviously, to get any kind of loan, you need to have certain documents at hand. So let's see what kind of documents are needed to get a mortgage in the UAE:A proof of your residence along with address proof of your current whereabouts in the UAE.

A printed copy of your password.

A financial document that can work as proof for your current financial status that has the details of your salary, tax return and any other earnings.

Steps To Get A Mortgage In The UAE1. You can contact a bank directly or contact a financial broker.

2. Decide which mortgage will be suitable for your situation; A Fixed Rate Mortgage or A Variable Rate Mortgage.

3. Issue an Agreement of Principle from the financial institution from which you are seeking a loan.

4. Make an offer to the owner of the property which you want to buy.

5. Once both the parties agree on a price, submit your deposit. And decide the date of completion with the bank.

6. Your property documents will be released to you on the completion date if you have paid the debt in full.

ConclusionUAE has grown significantly over the last few years in terms of its economy because of its open-door policy. This policy helped the country toThus, when the UAE's government made its policies more flexible for getting a mortgage for ex-pats. As a result, many foreigners became interested in buying property in developing countries such as Dubai, Abu Dhabi, and Sharjah, and rightfully so. After all, everyone knows that the UAE is going to dominate the world economy in the near future.

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