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How to save on groundwork when buying a home with mortgage in Dubai

06.08.2019
How to save on groundwork when buying a home with mortgage in Dubai
An adequate preparation and homework can save you a substantial sum when you choose to use bank financing for our property purchase in Dubai. Read more for main tips.

When planning to buy a home in Dubai through bank financing you should acquaint yourself with all final costs of a mortgage-related paperwork. Closing costs include fees and expenses which the buyer has to pay before finalizing the mortgage or, before the seller gives keys to the new owner.

In Dubai, closing costs include the land department fee, property registration fee, real estate agency fee, mortgage processing fee, property valuation fee, mortgage registration fee, etc. These closing costs can amount to 5-7 per cent of the unit’s value. For example, if the property you’ve eyed for yourself costs AED1 million, the closing costs can reach up to AED70,000, thus making these charges a substantial part of the overall deal value. But you can save some on these extra costs if you do your homework before finalizing a mortgage.

Here’s our guide:

Compare

Given that closing costs rate mostly depends on government and legal fees amount, which is non-negotiable, some fees can still be cut down through negotiation. These include mortgage processing fees, home inspection fees, insurance fees etc., which need to be paid to the lender or a third party. Compare different offers and choose one that can help you in saving your costs in every way.

Getting a mortgage estimate from two or more lenders can help you in comparing these charges. Once you get the loan estimate, watch attentively through every fee that is going to be charged. Check if there are any optional fees added.

Negotiate with the lender

Once you’ve studied different financing proposition from different banks or developers, you can ask for decreasing these costs. Usually, the lender will provide you with some discounts or offers and may even take on some fees of part of them. Negotiating can become easier if you are already an existing customer of that particular financial institution.

Negotiate with the seller

There are fees that are to be paid by the seller as well. Apart from this, you can ask your seller to cover some of your closing costs. A seller always wants to sell as soon as possible, thus you can use his desire in your own favor and ask him to cover the closing costs partially or completely. Most sellers won’t take on the entire amount of these costs, but if you can save at least half the cost then it is definitely worth a try.

Purchasing a home in Dubai may be one of the biggest deals you’ll close in your life, thus finding ways to save can make a huge difference in a long term.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. And in order to sell, lease or buy/ rent housing or commercial properties in Dubai, contact IMEX Real Estate. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com

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