I’m lucky enough to have been exposed to technology early on in my career, working in different ecosystems and cultures in the US and MENA, both as an operator and investor. This gave me the chance to witness the impact of technology first hand, and see how it transformed people’s lives. I was hooked. In 2019, I decided to leave my job in venture capital and turned my attention to the property sector, starting with mortgages, where inefficiencies, slow processes, and broken transactions affected me and the people around me.&nbsp; The real estate industry (and its derivatives) is the largest contributor to most economies globally, yet customers are massively underserved, where lack of visibility, poor customer experience, and overpayment are common problems. The State of the Industry Fragmented, with a commoditized service The real estate industry has a large number of players in all of its verticals (real estate agents, contractors, developers, mortgage brokers, lenders, etc.) with many similarities, underutilized operations, and inefficient processes. This is mainly due to a lack of innovation and adopting outdated systems from fifty years ago that have not developed over time. The result is an undifferentiated offering, low margins, and a very poor customer experience. Today’s consumers are extremely sophisticated, have unlimited access to information, and demand more from businesses, including lower prices, more convenience, and greater speed - all qualities lacking in the real estate market.&nbsp; The problem is more present in emerging markets The problem described above is universal but exponentially more present in emerging countries that have a higher number of encumbrances, lower market liquidity, and little differentiation in the offering. This creates a market where the customer is massively underserved and where market dynamics are designed to provide poor customer service. This issue is in contrast with mature markets, such as the US, where multiple prop-tech companies are already building the next wave of disruptive technologies. The question remains whether these companies can create 10x value to their stakeholders given the regulatory environment in place. Change Through Culture and Innovation We started Huspy to disrupt one of the largest global industries through software. Our customers are at the core of what we do. We focus on building products that people love, and that offer speed (at least 3x faster than the traditional process), all under a best price guarantee promise. These are our core values, and for us to achieve them, we need to build things from the ground up.&nbsp; How do we do that?&nbsp; &nbsp;We start by assembling top talent in the tech industry who were part of companies that disrupted traditional processes and created 10x value to their customers. In Huspy, we’re lucky to have early employees of companies such as Nubank, Loft, Revolut, Uber, and Microsoft that believe in this mission and have taken the risk to move to Dubai to build this vision - for this, I’m deeply appreciative and will forever be grateful. If you mix this with great investors that believe in our vision then you have a secret weapon. Building this vision is what wakes us up every day.

I’m lucky enough to have been exposed to technology early on in my career, working in different ecosystems and cultures in the US and MENA, both as an operator and investor. This gave me the chance to witness the impact of technology first hand, and see how it transformed people’s lives. I was hooked. 

Why I Started Huspy

First, let me introduce myself. My name is Murilo, I recently joined Huspy in February 2021 as VP of Growth. I moved to Dubai from Brazil where I worked at a promising proptech startup called Loft, which has a market value of USD 3 billion, funded by one of the largest Venture Capital funds in the world, A16Z. One of the main reasons I joined the team is because of Huspy’s mission, which is to redefine the mortgage market in UAE and other countries in the future. We all know this market has been slow to change and we hope to bring a user experience that is 10x better than what is offered out there currently. Other points that are very important to me: collaboration, autonomy, execution, speed, and being part of a very strong team. All of these ingredients were found here and that’s why the opportunity makes me so excited. But you may wonder how this company can grow so fast? We have support from investment funds from the USA, Europe, and MENA that have invested in our vision to make the change in the mortgage market that everyone is waiting for. Another thing that is very important to note is that Huspy aims to empower all stakeholders involved in the process: customers, real estate agents, mortgage brokers, and lenders. Let's understand how... Customers: Huspy provides a better user experience designed with technology, quickly comparing the best home loan rates at no cost. By taking the mortgage experience online, it is expected that customers will be able to save money, save time, and get a mortgage more efficiently. Real Estate Agents: Huspy pays commission to real estate agents for every referral that they close, and we can offer the best rates with leading banks in the United Arab Emirates. Also, we aim to deliver a world-class customer experience for clients who, we hope, will recommend us to their friends and family.&nbsp; Mortgage Brokers: Huspy helps to decrease their cost to serve by closing their deals while they focus on sourcing more clients.&nbsp; Lenders: Huspy increases their balance sheet deployment and provides efficiency by making them work with fewer players, aggregating sources of revenue. If you want to find out more, just send me a message on LinkedIn :)

First, let me introduce myself. My name is Murilo, I recently joined Huspy in February 2021 as VP of Growth. I moved to Dubai from Brazil where I worked at a promising proptech startup called Loft, which has a market value of USD 3 billion, funded by one of the largest Venture Capital funds in the world, A16Z.

Why I joined Huspy

I love asking hard questions because they help me avoid the fluff and get straight to the point. This post answers the top 3 hard questions that Huspy users usually ask: <ul><li>Can Huspy guarantee that I can get a mortgage?</li><li>Why doesn’t Huspy charge users? What’s the catch?</li><li>How does Huspy avoid conflicts of interest?</li></ul> Can Huspy guarantee that I can get a mortgage? No, and no one can. But we guarantee that we can maximise your chances to get approved. We always check all your documents before sending them to a bank and then push bank representatives hard until they approve your mortgage. We have mortgage veterans that have spent decades in this business so they know how to make your application look good and how to push bankers. Why doesn’t Huspy charge users? What’s the catch? The question you should be asking is why do some brokers charge users? All brokers get paid for their services by banks. No exceptions. So if banks pay brokers, why then do brokers charge users too? The answer is that the offline process is very inefficient, and brokers have to charge users to cover the processing cost. Huspy is different. Instead of hiring an army of employees, we have built an online platform that does the majority of the work. So no cost for us = no costs for users. How does Huspy avoid conflicts of interest? In other words, will Huspy recommend the bank that is best for a user, or will Huspy push a user to the bank that pays the highest higher commission to Huspy?&nbsp; We give the best rate for customers, and they can always check us. All they need to do is&nbsp;<a href="https://huspy.com/signup" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">sign up to Huspy</a>&nbsp;and see all the rates by themselves. Huspy’s online platform shows the honest paid interest for all banks, and everyone can compare the options.&nbsp; <img src="https://lh4.googleusercontent.com/__d35AYYSk-P4q33ZQdwyt4sRjxxlAQMcOYlVUv400_gacRlNIGqHb13mXMfNRJBIN0BUt7GH642ip6fpcGIyy_-gshjgT2nIAi3WAES1QOrj4FAIFBPAmm80gu3PJrHj3HY1w3S"> By the way, Huspy is one of the few mortgage brokers in the region that shows&nbsp;honest&nbsp;paid interest - we don't hide rates as other companies may do. <img src="https://lh3.googleusercontent.com/bjIStIB7t3NypOAyLVF7N5kkwfAWE33W0Efk7umo8ixONpfmTBFQpNtZVFS8n4zeJml_G5h8MfZOWkZGNKQZJXXh7JmQGPyrapEck0xtb1s_JCK3UMJxKs_M4DOg6MyergnxuQc6"> If you liked these questions and have anymore, please feel free to email me at&nbsp;<a href="mailto:vlad@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">vlad@huspy.com</a>&nbsp;and ask your tough question. I'll pick the best questions and answer them in the following blog posts. About the author: Vlad joined Huspy in 2020 to make the mortgage process cool and straightforward for the customer. Before Huspy, he worked at Revolut - a neo-bank that transformed an extremely inefficient banking industry in Europe.

I love asking hard questions because they help me avoid the fluff and get straight to the point. This post answers the top 3 hard questions that Huspy users usually ask:

3 difficult questions for Huspy

Being customer-facing and interacting with families who are trying to find their dream home, I get asked a lot of questions as they try to navigate the cumbersome mortgage process. The problem is unlike other transactions (think of Uber rides, grocery shopping, paying your bills, etc), the mortgage process is usually not a recurring transaction. Most people only do it once when they’re looking to buy their dream home - which means people don’t typically have a benchmark of how bad or good the process can be. For those who are lucky enough to have acquired more than one property, they can testify how inconvenient the process is irrespective of going through the bank directly or through a broker. So you must be wondering why Huspy? Since the mortgage transaction is typically a one-off transaction, for those who do end up going directly through their bank, by the time they realize why they should have gone through Huspy, it’s too late for us to come and help! I will cut through the chase and use whatever remaining attention span you are giving to this blog post efficiently and explain why Huspy over a bank? Access to all banks&nbsp; We all have limited time and energy. For you to find the best rate that fits your financial needs and profile you will have to go through 15+ banks, speak to each one of them and navigate over 500+ different financing products to understand what’s the best with you. For those of you who have tried to close a credit card with your bank, you can only imagine how long this mortgage discovery phase can take. With Huspy, you can do this from the comfort of your sofa in less than 2 minutes. I’m overselling it? Try it for yourself -&nbsp;<a href="http://www.huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>&nbsp;and if you find it difficult, let me know at&nbsp;<a href="mailto:afakhoury@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">afakhoury@huspy.com</a>&nbsp;and I’ll invite you over for coffee. But how long will it take? For those who have tried requesting a refund on a transaction or placed any other inquiry through the bank, they can testify to the extremely long processing times of the bank. Now imagine this request is put for a far more complicated transaction such as your mortgage financing.... I’ll leave the timeline expectation to your imagination. It can take anywhere between 6-10 weeks. With Huspy, we follow up with the banks on your behalf, leveraging our tech platform, and ensure documentation is flawless, therefore expediting your application so you can get your dream home in less than 3 weeks. Best of all? You will have full visibility on your application through the process. It’s not business, it’s YOU&nbsp; The bank is there to fulfil a request - it’s transactional. Huspy is here to guide you throughout the transaction which takes weeks. We go beyond the simple request fulfilment and view the mortgage as a journey to your dream home rather than a transaction. We review contracts with you, advise you on best practices when it comes to MOU signing, down payment process, and ways to save on interest payments and insurance.&nbsp; Thoughts/comments? Let’s grab a coffee and have a chat! Feel free to book a slot directly @<a href="https://afakhoury.youcanbook.me" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">https://afakhoury.youcanbook.me</a>&nbsp;and stop by our offices in BaySquare!

Being customer-facing and interacting with families who are trying to find their dream home, I get asked a lot of questions as they try to navigate the cumbersome mortgage process. The problem is unlike other transactions (think of Uber rides, grocery shopping, paying your bills, etc)

Why Huspy over your Bank?

Your dream home is closer than you think and here are a few pointers to help you make it happen. Buying a home often seems complicated, right? It’s actually pretty simple and doesn’t need to be overwhelming: Many first-time buyers don't know the criteria and waste time on countless calls with banks and salespeople to figure this out. Yet the conditions are pretty straightforward. Let's be independent!Firstly, understanding the conditions makes it easier for you to be in control of your home buying process and avoids frustrations and any surprises. Imagine finally deciding to buy the house of your dreams, only to find you can't finance it. Yep, that would suck! That’s why being prepared will give you confidence about the process and might even give you better conditions to negotiate with the seller (especially if you have a pre-approval letter).&nbsp; A few things to help you get started: Nationality and residence status&nbsp;Everyone can finance their home in the UAE! Even if you don't live in the Emirates, you can have a house here. If you are a resident, regardless of your nationality, you can own a house in Dubai. These factors won't stop you from getting the home you dream of. From Boomers to MillennialsDoes your age affect the financing process? The minimum age to finance your very own home is 21 years old, and the maximum is 65. You have plenty of time to get your dream home, get on the property ladder, and plan for the future. Do I need to be super-wealthy? What is the minimum income required? Is buying a house for everyone?&nbsp;Calm down, you don't need to be a millionaire to buy a house in Dubai. If you earn a salary of around AED 10,000/month, you can already get a mortgage with some banks. If you are self-employed, the minimum monthly profit required is AED 25,000. To make your dream even more possible, you can combine your finances with your loved ones to reach the income you need. Do I have to pay anything in advance?&nbsp;We know that talking about downpayment seems scary, but this rule is quite simple: a downpayment of 20% of the property's value is required if you are a resident (expat). If you are a local Emirati, you pay 15%; for non-residents, the downpayment is 50%.&nbsp; Can I buy an AED 4 million villa? How do I know how much I can finance?&nbsp;If you are a dreamer like me, you’ve probably already browsed those gorgeous villas, worth millions online and asked yourself if you could ever actually afford one of them. Banks estimate affordability by making a calculation that considers your other debts, such as credit card bills, monthly salary, and stress factors. To make your life easier, our calculator does everything automatically for you. Pre-approval: Getting you ahead of the gameIf you are still viewing homes or browsing your dream listings, something to consider to get you one step closer to your forever home is getting a pre-approval letter. Traditionally, a pre-approval letter is managed between you and the bank. With Huspy, we do the hard work for you, allowing you to manage the entire process through us, saving you heaps of time. And the pre-approval letter lasts about 60 days - plenty of time to think about where you want to live!&nbsp; Most mortgage advisors or banks take weeks to get your pre-approval letter. With Huspy, we’ll get you pre-approved in a matter of days, all of it online, and without paying a single dirham on broker fees. Ready to get started? Find out more and sign up&nbsp;<a href="https://www.huspy.com/login" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">here</a>&nbsp;to get your pre-approval letter today! New home here we come! <a href="http://www.huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Get me my pre-approval!</a>

Your dream home is closer than you think and here are a few pointers to help you make it happen.    Buying a home often seems complicated, right? It’s actually pretty simple and doesn’t need to be overwhelming..

5 helpful tips on getting a mortgage in the UAE 

Getting a mortgage pre-approval is the first step you’ll need to take on your path to becoming a home-owner! So first, what does pre-approval mean? A mortgage pre-approval is a document from a lender stating the loan amount they are willing to give to a borrower. While it does not guarantee a mortgage loan, it is an essential first step in your quest to find a dream home. Here at&nbsp;<a href="http://www.huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>, we’ve identified the 5 most important things you should know about getting pre-approved: How much can you afford to buy a home?There’s no point looking for a home if you have no idea how much you are eligible to borrow from the bank. By applying for pre-approval, you can see exactly how much money you can get to buy a home. Lenders look at things like your income, liabilities or debts, assets, and credit score to decide how much they will lend to you. When should you get pre-approved?The best time to get pre-approved is at the start of your journey to buying a new home. Once you’ve been pre-approved, you’ll have a clear picture of how much you can afford to borrow. This will help you narrow down your options and keep your search focused on what you can actually afford, not that multi-million dollar yacht you saw going for sale. How do you get pre-approved for a mortgage?Easy! Getting pre-approval means your lender will want to take a look at your finances, so there are a few documents you’ll need to provide. They include: <ul><li>Passport, visa, and residency card (if applicable, e.g. Emirates ID)</li><li>Latest salary certificate</li><li>Last 6 months of salary account statements</li><li>Last 6 months of payslips (if salary variance is present)</li><li>Proof of current address (DEWA bills or Ejari contract)</li><li>Latest credit card(s) statements</li><li>Proof of additional income (i.e. rent, bonuses, etc.)</li></ul> Once you’ve submitted all your information, you can expect to receive your pre-approval in a matter of days, not weeks. Got all your documents ready to go?&nbsp;<a href="https://huspy.com/signup" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Apply for pre-approval now</a>&nbsp;to see how much you can afford! Why should you get pre-approved?Getting a mortgage pre-approval letter is an essential part of the home buying process. First, it shows real estate agents you’re a serious buyer. Many agents typically ask to see your pre-approval letter before showing you houses. Second, it makes your offer stronger by showing sellers that you can get financed for the amount you’ve offered. Finally, because pre-approval requires getting the majority of the paperwork done upfront, it means you can speed up the process of buying your home once you’ve had an offer accepted! Can you get pre-approved online?Of course! In fact, you can do it&nbsp;<a href="https://huspy.com/signup" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">right here</a>. Our online application asks you a few simple questions to evaluate your eligibility for a home loan. The whole process should take no more than 15 minutes. We’ll let you know how much you can borrow, which banks will lend to you, and we’ll also find you the best rates. Once you’ve uploaded all your documents, you can sit back and relax!&nbsp;Getting the keys to your new homePre-approval is an important step toward buying a home. Once you’re financially verified, you’ll have a clear idea of how much you can afford, and it will help speed up the process of buying a home once you’ve had an offer accepted.&nbsp; Ready to get pre-approved?&nbsp;<a href="https://huspy.com/signup" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Apply now with Huspy</a>&nbsp;and take the first step toward finding your dream home!

A mortgage pre-approval is a document from a lender stating the loan amount they are willing to give to a borrower. While it does not guarantee a mortgage loan...

What is a mortgage pre-approval?

Your mortgage is one of the biggest and most important investments you’ll make in your life. But it’s important to stay on top of market trends otherwise you may end up overpaying on your mortgage in the long run. That’s where refinancing comes in. Refinancing your mortgage at the right time can help you lower your interest rates and pay off your loan faster, saving you thousands. Here’s a quick guide to help you decide if refinancing is right for you. What does mortgage refinancing mean? Refinancing a mortgage is when you take out a new mortgage to replace the original one. It’s usually done to reduce interest rates and monthly payments, or to cash out a portion of equity, or to change repayment terms. How does refinancing work? The process is similar to getting a mortgage. You can shop around and compare the best interest rates on offer, then compare those terms with your existing mortgage terms. In the same way, you had to qualify for the original mortgage loan, you will have to qualify for mortgage refinancing. That means filing an application, getting credit checks, submitting income and employment history, right through to receiving an offer from your lender, just like you did when you bought the home. One more thing you should keep an eye out for...extra costs! You’ll need to work out if paying the upfront costs are worth refinancing, especially if the monthly payments are not reduced by much. When should you refinance your mortgage? There are lots of reasons homeowners choose to refinance their home loans. Here are just a few of them: <ul><li>Lower interest rates and monthly payments.&nbsp;If your interest rates have dropped since you first got your mortgage, then you may be able to save money on interest with a lower rate and lower monthly payments.</li></ul> <ul><li>Pay off the loan faster.&nbsp;Refinancing from a 25-year mortgage to a 15-year loan means you’ll be able to pay it off in much less time. You’ll have to pay more each month on your mortgage payments, but the benefit is that you’ll pay&nbsp;less&nbsp;interest in total over the long term. Only consider this option if you can afford to pay more each month.</li></ul> <ul><li>Claim equity.&nbsp;Got significant equity in your home? You may be able to cash out a portion of it by refinancing. This can be referred to as cash-out, refinance, or equity release. It’s when you replace your existing mortgage with a loan for&nbsp;more&nbsp;than you owe. The difference gets transferred to your account from your lender.</li></ul> <ul><li>Switch loan type.&nbsp;Interest rates tend to fluctuate. So having an adjustable-rate mortgage carries more risk. Refinancing from an adjustable-rate mortgage to a fixed-rate loan - where interest rates stay the same - will provide you with more financial stability.</li></ul> What is the downside of refinancing? Yes, there are plenty of positives to mortgage refinancing. But what about the downsides? Here are some of the potential pitfalls: <ul><li>Shortening your mortgage term to 15- or 20-years means you’ll have to pay more on your monthly payments.</li></ul> <ul><li>On the other hand, lengthening your loan term can result in paying more interest over the life of your mortgage loan!</li></ul> <ul><li>Cashing out any equity you have will result in a higher loan amount on your new mortgage, which will lead to higher monthly payments.</li></ul> The bottom line Refinancing your mortgage is a big decision to make with lots of factors to consider. Whether you want to lower your monthly payments, change to a fixed-loan mortgage for financial security, or cash out some of your equity to pay for home improvements, refinancing may help you achieve your financial goals.&nbsp;<a href="http://www.huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>&nbsp;can help you decide! Need some advice? Our incredible team of mortgage experts are here to answer any questions you may have. And they don’t charge a fee!&nbsp;<a href="https://huspy.com/contact" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Chat with us today</a>, we’re here to help :)

Refinancing your mortgage at the right time can help you lower your interest rates and pay off your loan faster, saving you thousands. Here’s a quick guide to help you decide if refinancing is right for you.

Should I refinance my mortgage?

Good question! Renting is a huge expense, and will amount to approximately&nbsp;<a href="https://ellingtonproperties.ae/blog/apartments-in-dubai-should-expats-buy-or-rent-and-why" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">40% of your salary</a>&nbsp;if you live in Dubai. But there are many extra fees you have to pay when buying a property and a big down payment you have to save for. So what’s the best choice for you? We’ve put together a quick guide on buying or renting a property in the UAE to help you decide. How long do you plan to stay in the UAE? First things first...review your short-term plans. Are you planning to spend at least the next 5 years in the UAE? With everything that’s involved, you need to ask yourself if you’ll be here long enough to justify going through the mortgage process and all the extra costs that come with buying a property. If you’re planning on staying a couple of years, or are simply unsure about your plans, then renting might be the better option. It gives you greater flexibility, more freedom, and means with 3-months notice you can be off on your next adventure. How are your finances? Are you in a stable job? Do you have a steady source of income? If so, then you might be in a position to buy a property. However, saving enough money for the down payment (minimum 20% for expats, 15% for UAE nationals) can be a big ask, even for people who are on a good salary. Pros of buying a property <ul><li>Flexibility in payment. With a mortgage, there is lots of flexibility. Choose the repayment type, length of the loan, and make extra payments when it’s possible.</li></ul> <ul><li>Household modifications. If you own the property...you can do whatever you want to it. Extensions, redecorate, make repairs. Your house is your playground!</li></ul> <ul><li>Asset appreciation. Property typically appreciates in value over time, meaning in 10 years it will likely be worth more than when you bought it for.</li></ul> Downfalls of buying a property <ul><li>Downpayment. For properties under 5M, UAE nationals need a minimum down payment of 15% of the property value before getting a loan. That increases to 20% if you are a UAE resident (expat). This likely means you’ll need to spend a few years saving.</li></ul> <ul><li>Interest. Great, you own a house...but with every monthly payment, you’ll be paying interest too. Over 25 years (the maximum mortgage term you can get), that can add up.</li></ul> <ul><li>Fees. Broker fees, registration fees, valuation fees, product fees. Overall, property investors can expect to pay about 6-7% of the property price in upfront costs.</li></ul> Pros of renting <ul><li>Flexibility. Don’t like your new flat? Too expensive? You can give notice and be out of there and find a better or cheaper one without any hassle.</li></ul> <ul><li>Maintenance. Your landlord takes care of maintenance issues which means less work for you and no DIY jobs around the house.</li></ul> Downfalls of renting <ul><li>No assets. Comparing a renter vs a buyer after 10 years, the renter is worse off. They don’t have any asset equity and have not benefited from asset appreciation, which they could potentially use to upgrade into a bigger, more expensive home.</li></ul> <ul><li>Moving. One of the biggest headaches of renting. The never-ending cycle of moving from one place to another. Buying allows you to settle in one place for the long term.</li></ul> Bottom line Deciding what to do isn’t easy, and it depends very much on your personal and financial circumstances. The good news is that if you are looking to buy, and want a mortgage broker that doesn’t charge any fees, then why not give us a call?&nbsp; Huspy is a free online mortgage broker dedicated to helping you find the best mortgage rates, get the keys to your home 3x faster than the traditional process, and have the best possible experience along the way.

So what’s the best choice for you? We’ve put together a quick guide on buying or renting a property in the UAE to help you decide.

Should I buy or rent?

Are you looking to secure a mortgage? One of the first steps in this process is an affordability assessment. Because of the risk involved, lenders will want to make sure you have the means of repaying the loan they give you over the mortgage term. But that’s not the only important thing about affordability assessments. They also determine how much you will be able to borrow, which in turn influences the type of property you can afford to buy. Here’s our quick and easy-to-read guide on everything you need to know about getting a mortgage affordability assessment. How do affordability assessments work? The two main criteria a potential lender will look at to determine affordability are your monthly income and monthly debt.&nbsp; Your main source of income is likely your full-time job, so they will want to see payslips as proof of this. Some lenders may also consider extra income to determine affordability, such as a part-time job, bonuses, or commission, although this depends on the lender. The amount you can borrow is capped at seven times your annual salary for expats, and eight times your annual salary for UAE nationals. Second, the bank will want to calculate your Debt-Burden-Ratio (DBR). Your DBR is your monthly debts as a ratio of your income. Law in the UAE states that your monthly debt (including credit cards and loans) cannot exceed 50% of your monthly income. If you do, your mortgage application will be rejected.&nbsp; Taking these factors into account, your bank will then decide if you are a trustworthy customer who will be able to pay the loan back over the mortgage term (which can be a maximum of 25 years). One thing to keep in mind...your lender will want to “stress test” your finances. They do this by artificially inflating the interest rate by 1% to see if the buyer would still be able to afford the mortgage repayments. It’s a simple way of checking affordability if EIBOR rates were to increase. What if I’m self-employed? Lenders see self-employed people as being at higher risk. Monthly income can fluctuate or can change dramatically if, for example, you lose a big client overnight. Because of this, lenders typically require 2 years of audited financial statements amongst other things. The aim is simply to prove that you are a reliable candidate, with a steady income, who will be able to meet your monthly payments. What’s the legally allowed loan limit? In March 2020, in response to the Covid-19 pandemic and its impact on the economy, the Central Bank of the UAE issued a Targeted Economic Support Scheme (TESS) whereby UAE banks can increase the loan-to-value (LTV) ratio for first-time buyers by 5%. This includes both expats and UAE nationals. This means that expat first-time buyers can now borrow up to 80% of their property value (up from 75%) on properties less than AED 5 million. UAE nationals may borrow up to 85% of their property value (up from 80%), also on properties less than AED 5 million. For properties over AED 5 million, this decreases to 65% for expats and 70% for UAE nationals. The UAE central bank confirmed these changes have been extended until mid-2022. I failed an affordability assessment. Now what? Okay, so your lender won’t give you the amount you need to buy the property you want. If the lower amount they offer won’t cut it, there are a few things you can do to make sure you’re in the best position to get the loan you need next time around: <ul><li>Pay off your debts.&nbsp;Credit card debt and personal loans can have a big impact on affordability, so try to clear these as much as possible before applying for a mortgage. Also try to keep well within your credit limit, as this can affect your credit score.</li></ul> <ul><li>Take control of your spending.&nbsp;Tally up your expenses and start canceling the things you don’t use. Or see if you can reduce the costs of your regular expenses, such as car insurance or utilities. This will not only save you money but show lenders that you’re financially responsible - a big plus when it comes to securing a mortgage loan.</li></ul> <ul><li>Budget carefully.&nbsp;Creating a weekly or monthly budget helps you manage your money more effectively and demonstrate that you can live within your means.&nbsp;</li></ul> We’re here to help you Huspy is a free online mortgage broker helping you go from pre-approval to house keys in less than one month. And we don’t charge any fees! Want to see how much you can borrow? We’ll be able to give you a personalised estimate in a matter of minutes. Check out our website to get started. Not sure if you will pass an affordability check? Want to check if you are eligible to get a mortgage loan? Our friendly team of mortgage experts can help :) And they don’t charge a fee!

Are you looking to secure a mortgage? One of the first steps in this process is an affordability assessment. Because of the risk involved, lenders will want to make sure you have the means of repaying the loan..

How much can I borrow? A quick guide to mortgage affordability

Most people know what a credit score is - it’s a three-digit score assigned to individuals based on their financial health. But what they don’t realise is that your credit score plays an important role in deciding your eligibility for a mortgage loan from the bank.&nbsp;A good credit score means you’ll get more offers to choose from, better interest rates, and a higher probability of getting a mortgage approved. A bad score? That could mean you’ll struggle to get mortgage offers based on the perceived risk of lending to you - and may not get approved for a loan at all! So if you’re thinking about buying a home, either now or in the next few years, it’s important to start thinking about your credit score and your financial health. Here’s a quick guide on everything you need to know about it and some quick tips on what you can do to improve it.&nbsp; What is a credit score?&nbsp;In simple terms, a credit score is a number that predicts how likely an individual is to make repayments on a credit card or loan. The number ranges from 300 to 900. The higher the score, the less risky you are to lend. The lower the score, the higher the risk. Credit scores are provided by the Al Etihad Credit Bureau (AECB), which collects the financial information of an individual from various sources such as banks, credit card providers, lenders, etc. and generates a report by analysing the details. This report is then used by financial institutions to determine whether an applicant is capable of repaying the loan. The report contains a record of your bank accounts, the number of credit cards, credit utilisation, due dates, whether there have been any missed payments, paid installments, due dates, along with any other relevant financial information, from both the past and present.&nbsp; How can I improve my credit score?&nbsp;If you have a&nbsp;<a href="https://www.policybazaar.ae/credit-score-in-the-uae-all-you-need-to-know-ccart/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">low credit score</a>, you must try to improve it to increase your chances of getting a mortgage loan. Here are some ways to help maintain or improve your credit score: <ul><li>Pay your bills on time.&nbsp;It’s a common but important way to keep a good credit score. Even a one-day late payment will be recorded and may negatively affect your application for credit or a loan. Make sure to pay your bills on time and in full to prove you’re a reliable borrower.</li></ul> <ul><li>Manage your debt.&nbsp;Try to clear debts with high interest rates as soon as possible, as costs will mount up. Do you really need that new car, or can you make the most of the one you've already got? Be savvy with what you do and don't need.</li></ul> <ul><li>Credit utilisation.&nbsp;Credit utilisation is the percentage of the credit limit you use. For example, if you’ve spent AED 10,000 from an AED 20,000 limit credit card, your credit utilisation is 50%. Try to keep your utilisation within 50%, as lower percentages are seen positively and will increase your score as a result.</li></ul> <ul><li>Credit applications.&nbsp;Yes, this matters. One or two recent inquiries won’t make too much difference, but several in a short space of time can lower your credit score.</li></ul> How can I check my credit score?&nbsp;To check your credit score in the UAE, you’ll need to contact the AECB Office in Dubai or Abu Dhabi. You'll need to provide your Emirates ID and other identification documents, and will need to fill in a request form. Alternatively, you can visit the&nbsp;<a href="https://aecb.gov.ae/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">AECB website</a>&nbsp;and fill in their online form or download their app.&nbsp; Bottom line&nbsp;A credit score is one of the most important factors when it comes to determining whether or not you are a reliable borrower who can repay your loan. No bank in the UAE processes a loan without studying the credit report of the applicant.&nbsp; So now you know how important it is, follow the steps outlined above to either improve or maintain a good credit score to give you the best chance of getting your mortgage loan approved when the time comes. Still need help? Our in-house mortgage experts have over 20 years of combined experience working for some of the best banks in the UAE, including RAKBANK, DIB, Mashreq, and Emirates NBD. And they don’t charge a fee!&nbsp;<a href="https://huspy.com/contact" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Get in touch</a>&nbsp;with us today and ask us anything, we’re here to help :)

A good credit score means you’ll get more offers to choose from, better interest rates, and a higher probability of getting a mortgage approved. A bad score? That could mean you’ll struggle to get mortgage offers based on the perceived risk of lending to you

4 tips to improve your credit score

Looking to buy your dream home in Dubai, but don’t know where to start? Let us help you with a short guide of things you must consider before making one of the largest purchases of your life! With that said, It doesn’t have to be as scary as it may seem. Let’s break it down. Who can buy property in Dubai? Anyone, whether you are a UAE National or not, can buy in Dubai. As an Expat, or non-resident in Dubai, you can qualify to purchase a leasehold or freehold property in Dubai’s designated freehold zones including Dubai Marina, Emirates Hills, Palm Jumeirah, and Sports City. Age &amp; monthly income: If you are aged between 21 and 65, you can jump on to the Dubai property ladder as long as you have a monthly income of AED 10,000 (salaried) and AED 25,000 (self-employed) and more. What documents do I need to buy with a mortgage in Dubai? As a Dubai resident you will need: <ul><li>Passport, visa, and residency card (if applicable, e.g. Emirates ID)</li><li>Latest salary certificate</li><li>Last 6 months of statements for all accounts</li><li>Last 6 months of payslips (if salary variance is present)</li><li>Proof of current address (DEWA bills or Ejari contract)</li><li>Latest credit card(s) statements</li><li>Proof of additional income (i.e. rent, bonuses, etc.)</li></ul> As a non-resident, you will just need: <ul><li>Your passport</li><li>Bank statements for the last 6 months</li><li>Proof of address</li></ul> Getting a mortgage in Dubai If you are looking to finance your home in Dubai there a few things to keep in mind: Borrowing limits: Expat first-time buyers can borrow up to 80% of their property value on properties less than AED 5 million. UAE nationals may borrow up to 85% of their property value, also on properties less than AED 5 million. For properties over AED 5 million, this decreases to 65% for expats and 70% for UAE nationals. Read our guide&nbsp;<a href="https://huspy.com/blog/how-much-can-i-borrow-a-quick-guide-to-mortgage-affordability" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">How much can I borrow</a>? for more details. Down payments: Subsequently, as a first-time buyer of properties less than AED 5 million, you need to put down a deposit of: <ul><li>20% (Non-UAE nationals)</li><li>15% (UAE nationals)</li></ul> For properties over AED 5 million, the down payment increases to 35% for Expats and 30% for UAE nationals. Getting a pre-approval letter One of the most important steps during the mortgage process is getting a pre-approval letter. This is a document from a lender stating the loan amount they are willing to give to a borrower. While it does not guarantee a mortgage loan, it is a crucial step in getting one step closer to your dream home. Check out our article&nbsp;<a href="https://huspy.com/blog/what-is-a-mortgage-pre-approval" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">What a mortgage pre-approval is</a>&nbsp;to find out all you need to know about getting pre-approved. The good news is that pre-approval letters are mostly valid for 60 days, giving you sufficient time to find your future home.&nbsp; In addition to your mortgage, there will be fees payable to the Dubai Land Department and your Real Estate Agency to conclude the cost of buying a property in Dubai. Ready to buy a property and get pre-approved? You can apply online with <a href="https://huspy.com/signup" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>&nbsp;and go from pre-approval to house keys in less than one month!&nbsp;

Looking to buy your dream home in Dubai, but don’t know where to start? Let us help you with a short guide of things you must consider before making one of the largest purchases of your life!

How to get a mortgage and buy a property in Dubai 

Taking out a mortgage involves borrowing a large amount of money from lenders, so they won’t provide it to just anyone. That’s why lenders have criteria you have to meet to be eligible. Let’s take a look at some of the factors that make you eligible for a home loan and see what you can do to improve your chances if you’re currently struggling.&nbsp;What decides my eligibility for a mortgage? There are generally a wide variety of factors that decide whether you qualify for a mortgage, although lenders tend to have different criteria. So if you’re rejected by one lender, it doesn’t mean you won’t be able to find another one who will accept your application (although it’s not advisable to make too many applications in a short space of time, as this could negatively affect your credit score and future chances of getting approved). Here are the main factors that will decide your mortgage eligibility:&nbsp;Your credit score&nbsp;Your&nbsp;<a href="https://huspy.com/blog/4-tips-to-improve-your-credit-score" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">credit score</a>&nbsp;estimates how likely a person is to make repayments on a credit card or loan. It lets lenders know what your financial history is like, and whether you have missed any credit payments in the past to determine how risky it would be to lend to you.&nbsp;The report also contains a record of your bank accounts, the number of credit cards, credit utilisation, due dates, whether there have been any missed payments, paid installments, due dates, along with any other relevant financial information.&nbsp;The higher your credit score, the more likely you are to be approved for a mortgage, so keep that in mind. Check out our article on&nbsp;<a href="https://huspy.com/blog/4-tips-to-improve-your-credit-score" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">how to improve your credit score</a>&nbsp;if you’re concerned about your credit score.&nbsp;Please note: credit scores impact lending decisions on a case-by-case basis.&nbsp;Your down payment Before even thinking about applying for a mortgage, you’ll need to understand how much deposit is required. This differs slightly depending on if you’re a UAE national or a UAE resident. For first-time buyers looking at properties under AED 5 million, UAE nationals need a 15% down payment. For non-UAE nationals, you’ll need 20%.&nbsp;If you’re a first-time buyer looking at a property valued over AED 5 million, then the size of the down payment increases: to 30% for UAE nationals, and 35% for non-UAE nationals.&nbsp;So if you’re thinking about getting on the property ladder soon...get saving! &nbsp;Your affordability Lenders will assess your affordability by asking for proof of your income. You’ll need to provide this by showing your latest salary certificate, or the last 6 months of payslips (if your salary varies). Other documents lenders will ask for to assess affordability may include proof of additional income, bank statements, and credit card statements. By demonstrating a steady, consistent income (whether salaried or self-employed), banks will consider you a less risky borrower and will be more likely to approve your mortgage application. Your employment status The criteria change slightly depending on if you’re salaried or self-employed. For salaried applicants, you must earn a minimum salary of AED 10,000 per month and, as mentioned above, provide proof of employment via payslips and salary certificate. If you have just started a new job then you will have to wait until your probation period has finished (usually between 3-6 months) as you won’t be eligible for a mortgage during this period. If you are self-employed, then you must have been running your business for at least one year, and earn a minimum salary of AED 15,000 per month. Other factors: <ul><li>Minimum salary requirements are usually AED 10,000 for both UAE Nationals and non-UAE nationals. Other banks have a list of approved employers and will decide eligibility based on this.</li><li>Applicants must be at least 21 years of age for a home loan and must complete payments by the age of 65 for salaried applicants and 70 years for self-employed applicants.</li><li>The value of your total monthly repayments (i.e. including any existing repayments and credit cards) must not exceed 50% of your monthly income.</li></ul>&nbsp;How can I check if I qualify for a mortgage?&nbsp;There’s a lot to think about when trying to figure out if you’re eligible or not before applying for a mortgage. To see how much of a mortgage you could qualify for, use our simple <a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>.&nbsp; If you’re still unsure,&nbsp;<a href="https://huspy.com/contact" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">get in touch</a>&nbsp;with our friendly in-house mortgage team who are happy to answer any questions you have. Best of all? They don’t charge a fee!

There are generally a wide variety of factors that decide whether you qualify for a mortgage, although lenders tend to have different criteria.

Am I eligible for a mortgage?

If you’re looking to get on the property ladder, then you’ll probably need a mortgage, also known as a home loan. The difficult part is meeting the eligibility criteria and finding the best mortgage for you with the lowest interest rates, so you don’t have to spend more than you have to during the length of your mortgage term on interest. That’s where a good mortgage broker comes in. How can a mortgage broker help me? A mortgage broker’s job is to find you a mortgage product that fits your individual circumstances and needs. One of the benefits of using a mortgage broker instead of going directly to a lender is that, usually, they are not tied to specific lenders (although it’s always best to check!) and so can find you a mortgage deal that is in&nbsp;your&nbsp;interests, not theirs or the bank’s. Can a mortgage broker answer any questions I have? The mortgage industry is big and confusing, with so many competing banks, over 250 products and offers to choose from, and confusing terms that can be difficult to understand - especially as a first-time buyer! That’s another huge benefit of working with a mortgage broker to help you. They’re experts in the business of mortgages and buying property, so can answer all of your questions, offer you advice if you need it, and clarify anything that’s confusing you. Are mortgage brokers expensive? Fees vary depending on the broker you’re working with. If you’re thinking about using a broker to find you the best mortgage offers, consider meeting with a few different ones and getting a full breakdown of their costs before committing. Typically, a mortgage broker in Dubai may cost anywhere between AED 2,000 to AED 5,000. Some brokers may charge a percentage of the mortgage (between 1-2% of the deal size) as their fee. Again, make sure to get a full understanding of a broker’s costs before committing to their services. How do I know if they are legit? Mortgage brokers in Dubai should have completed the Certified Mortgage Broker Course (CMB) as a minimum requirement. This certificate is issued by the Dubai Real Estate Institute. If you’re unsure, check their website or ask them to send over this qualification so you know you’re in safe hands! Also, make sure to check the broker and the company they work for are licensed by the regulator. What about an online mortgage broker? Getting a mortgage is expensive enough as it is without paying extra fees for mortgage brokers. So isn’t there a cheaper option? What if you don’t want to pay the extra fees? That’s where online mortgage brokers come in. Online mortgage brokers (like Huspy) are changing the way you can get a mortgage in the UAE. We are bringing the entire home buying journey online, and can give you the tools and expert support you need to find the best mortgage rates, get the keys to your home 3x faster, and have the best possible experience along the way. Best of all? We’re 100% free. No fees, no extra work, no extra costs. If you’re thinking about using a mortgage broker to help you find your dream home, then why not give us a call on +971 58 106 8459 or send us an email at&nbsp;<a href="mailto:contact@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>. We have an amazing in-house team of mortgage specialists who want to help you...so get in touch today!

A mortgage broker’s job is to find you a mortgage product that fits your individual circumstances and needs. One of the benefits of using a mortgage broker instead of going directly to a lender is that, usually, they are not tied to specific lenders 

How To Find a Mortgage Broker In Dubai

Looking for a better mortgage deal? Then it might be time to change your mortgage provider. Usually, homeowners switch mortgage providers to find a cheaper deal and save thousands over their mortgage terms - but there are other financial costs to consider before switching. Let’s take a quick look at what switching mortgage providers could mean for you, and what things you need to look out for if you decide to switch. What does it mean to switch mortgage providers? This process is officially known as refinancing. It’s when you change lenders - for example, from RAKBANK to Emirates NBD - and is usually done to secure a better mortgage deal with lower interest rates. Refinancing is different from a ‘product transfer’, which simply means switching your mortgage deal but staying with your current lender. When should I change mortgage provider? Most people change their mortgage provider once their fixed-term mortgage comes to an end after 1, 2, 3, or 5 years. After this, your interest rates will increase to either an EIBOR-based variable rate or your lender’s own internal lending rate. This will be for the remainder of your mortgage term - meaning you’ll have to pay more interest. So it’s usually better to find another mortgage deal that offers better terms that will save you money in the long run. You can usually start applying for a new mortgage up to six months before the date you need it to start. What fees will I need to pay? Before committing to changing mortgage provider, you should be aware that it carries additional costs, just in the same way applying for a mortgage on a new home does. Here are the fees you may need to pay: <ul><li>Liability letter fee (this can be up to AED 1,000 + VAT, but not all banks charge this fee)</li><li>Early settlement fee (1% of the mortgage loan, capped at AED 10,000)</li><li>Processing fees from your new bank</li><li>Mortgage discharge fee to Dubai Land Department (between AED 1,590 - AED 1,860 depending on whether it is a conventional or Islamic mortgage)</li><li>A mortgage registration fee to the Dubai Land Department (0.25% of loan amount + AED 290)</li><li>Trustee fee (AED 4,000 + VAT)</li></ul> I’m ready to switch - what do I need to do? Ready to find a better deal? Then here’s what you need to do: <ul><li>The earlier you prepare, the better chance you have of getting approved for a new mortgage. Get all your paperwork prepped in advance and check your credit score to make sure it’s not going to give you any surprises!</li><li>Start looking for a better deal around six months before your current mortgage deal expires. You can get in touch with our friendly in-house team of mortgage experts if you need some advice. They don’t charge a fee and have access to over 500 mortgage options!</li><li>Once you’ve found the best mortgage offer for you, then start preparing your application. We can help you with that too!</li><li>If all your paperwork is correct then your new mortgage provider will issue a deal for you to sign and return. This will usually be valid for up to six months.</li><li>Once the legal work is complete, you’ll get a completion date for when the old mortgage closes and the new one starts - double-check that your new mortgage doesn’t complete too early!</li><li>On completion, your old lender will draw down the funds and pay off your old lender, so your debt is now with the new mortgage provider.</li><li>That’s it! Your next monthly payment will be to your new lender.</li></ul> Looking to change mortgage provider? We can help If you’re interested in switching mortgage providers to find a better deal, then we can help :) Huspy is a free online mortgage broker with access to over 500 mortgage offers and can help you find the best deals tailored for you in just a matter of minutes. Plus we have a friendly team of experts who are here to help you every step of the way - without charging a single dirham. Call us on +971 58 106 8459 or send us an email at&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>. We’re happy to help!

Let’s take a quick look at what switching mortgage providers could mean for you, and what things you need to look out for if you decide to switch.

How can I change my mortgage provider?

Is a fixed-rate mortgage the right choice for you? There are advantages and disadvantages so the answer to that depends on your personal circumstances. In this short guide, we’ll explain what a fixed mortgage rate is, the difference between the length in terms, and what happens at the end of your fixed-rate period. What is a fixed-rate mortgage? A fixed-rate mortgage is where the interest rate you pay on the loan is usually ‘fixed’ at a lower rate for a set period. In Dubai, that’s usually between one and five years. Depending on how long you set your mortgage for, the interest rate you pay will vary. Usually, the longer you fix for, the higher the interest rate will be. One of the main benefits of this type of mortgage is that you’ll know exactly how much you’re going to pay each month. Whatever happens to interest rates during your fixed-rate period, your payments will remain the same. This can make a big difference when budgeting as you won’t see any sharp and unexpected increases if interest rates were to rise. What happens at the end of your fixed-rate period? Once your fixed period comes to an end, your interest rate will revert to the variable rate. This is a fixed percentage above the Emirates Interbank Offered Rate (EIBOR) and so will mean paying more interest every month. EIBOR is published by the UAE Central Bank and is based on the average interest rates UAE banks offer. At this point, you may decide to find another fixed rate mortgage deal to lock in another rate for a set period to continue repaying your mortgage loan at the cheapest rates possible. Advantages of fixed-rate mortgages: <ul><li>Your interest rates are locked in, so you don’t need to worry about increases.</li><li>Managing your finances will be easier because you’ll know exactly how much is going out each month.</li><li>You can choose a short or long-term fixed deal to suit your circumstances.</li></ul> Disadvantages of fixed-rate mortgages: <ul><li>If interest rates drop, you might be missing out on a better deal elsewhere.</li><li>If you choose a longer fixed period, your interest rates will be higher and less competitive.</li><li>Exiting a fixed-rate mortgage early incurs a max of 1% capped at AED 10,000.</li></ul> Looking for a mortgage? We can help If you need help finding the best mortgage offers tailored to your needs, then we can help. We’re the first entirely online mortgage broker in the UAE that offers a faster and easier mortgage experience. If you have any questions, then give our friendly in-house team of mortgage specialists a call on +971 58 106 8459 or send us an email at hi@huspy.com.

Is a fixed-rate mortgage the right choice for you? There are advantages and disadvantages so the answer to that depends on your personal circumstances. 

Fixed-rate mortgages explained

Looking to buy property in Dubai? We don’t blame you! But before you do, it’s important to understand the costs involved in making such an investment. To help you decide, we’ve put together a quick guide with all the relevant upfront costs so you can make an informed decision about whether buying a property in Dubai is the right thing to do. What is the actual cost of buying property in Dubai? The Dubai real estate market has a lot of regulations in place to protect buyers and sellers. That’s why, on top of the down payment you need to save for, there are various upfront fees you’ll have to pay which can add up to 7% of the property’s value. Fortunately, some banks allow you to finance some of these fees. More on that later. For now, here’s a breakdown of the upfront costs you’ll need to pay if buying property in Dubai: Upfront fees for property in Dubai <ul><li>Dubai Land Department fee (4% of property purchase price + AED 580 admin fee)</li><li>Dubai Land Department mortgage registration fee (0.25% of loan amount + AED 290)</li><li>Real estate agency fee (2% of property value + 5% VAT)</li><li>Bank processing fee (Up to 1% of loan amount + 5% VAT)</li><li>Property registration fee (Properties below AED 500,000: AED 2,000 + 5% VAT; Properties above AED 500,000: AED 4,000 + 5% VAT)</li><li>Property valuation fee (From AED 2,500 to AED 3,500 + 5% VAT)</li></ul> What if I can’t afford the extra fees? If you’re struggling to get the extra cash together required to meet the 7% in additional fees, then you’re in luck! A select few banks offer ‘free financing’, meaning you can borrow up to 85% (resident) or 80% (non-resident) of the 4% Dubai Land Department and 2% Real Estate Agency Fees. This equates to an additional 5.1% and 4.8% lending respectively. This amount is added to your mortgage and repaid over the length of your mortgage term. Fees when buying off-plan property in Dubai For buyers considering off-plan property in Dubai, the 4% DLD fee will be applicable. In addition to this, the buyer will need to pay AED 5,250 for Oqood certification (pre-title deed) to the DLD. How can I avoid paying broker fees? By going through a traditional mortgage broker, you will typically have to pay AED 5,000 + VAT, or up to 0.5% of the property value. But online mortgage brokers like Huspy are 100% free. We don’t charge any hidden fees or extra costs. You’ll save thousands! And best of all, because we help you find honest and best rates, you’ll save thousands every year by paying less interest on your mortgage over the long term. Need help finding the best mortgage offers with the lowest interest rates? Then give our friendly in-house team of mortgage specialists a call on +971 58 106 8459 or send us an email at hi@huspy.com.

On top of the down payment you need to save for, there are various upfront fees you’ll have to pay which can add up to 7% of the property’s value. 

Buying property in Dubai: What fees do I need to pay?

Mortgage protection insurance in the UAE is mandatory. It’s designed to protect you and your lender in the case of an unexpected death or permanent disability before paying off the loan in full. In this article, we’ll dive into what exactly it is, why you need it, and some of the key things you’ll need to consider. How does mortgage protection insurance work? Mortgage protection insurance is a life insurance policy. It will repay your home loan in full in case of your untimely death or permanent disability so your partner or family doesn’t need to worry about mortgage payments. While most lenders have one specific life insurance policy without a choice of terms, other lenders allow you to purchase your own life insurance and assign the bank as the beneficiary (usually for a fee). With mortgage protection insurance, the death benefit would equal the amount of the original mortgage loan. As the homeowner pays off their mortgage, the benefit would continue to match the outstanding balance. Once the loan has been repaid, the coverage ends. Typically, banks charge your insurance separately from your loan on a monthly basis. However, some banks increase the interest rates on the mortgage loan to cover the monthly insurance premium instead. Other banks may require you to pay the policy in advance. 1. How much does mortgage protection insurance cost? This depends on various factors. Usually, the younger and healthier you are, the less you’ll pay. For an AED 1M mortgage, you could pay as little as AED 108 per month. However, costs can increase with your age and health. Also, pre-existing medical conditions must be legally disclosed and will be factored into your coverage. One factor that can significantly increase your insurance premiums is if you are a smoker. You are considered a smoker if you have had any form of nicotine in the last 12 months, including cigarettes, cigars, Shisha, electronic cigarettes, nicotine patches, or gum. Your country of origin can also affect the cost of your life insurance. Generally, people from western countries get lower life insurance premiums. 2. Decreasing-term vs level-term policy A decreasing term insurance policy is where the benefit reduces over time as the outstanding mortgage balance decreases while the payable amount stays the same. A level-term policy is where the insured amount stays fixed for the duration of the policy and does not decrease in line with the mortgage balance over time. While decreasing-term policies are cheaper, life-term policies may be better if you have a family who may benefit from a fixed (instead of decreasing) benefit in case of an untimely death. 3. Do I need critical illness cover? Critical illness cover (CIC) covers mortgage payments if you are diagnosed with a serious illness and cannot work or pay your mortgage. It’s generally advised by insurance advisors, although not mandatory in the UAE. It can be quite expensive, so it’s worth speaking to your insurance advisor about this and what some of the best options may be for you e.g. getting enough CIC insurance to cover loan repayments for a few years. Need help deciding? We can help Need advice about which banks have the most flexible insurance policies that will be suitable to your circumstances? Then don’t hesitate to get in touch with our friendly in-house team of mortgage experts. Call us on +971 58 106 8459 or send us an email at hi@huspy.com.

Mortgage protection insurance in the UAE is mandatory. It’s designed to protect you and your lender in the case of an unexpected death or permanent disability..

Mortgage protection insurance: 3 things to consider

Buying a property is an exciting, but daunting process. One of the key factors to consider as part of that process is what type of mortgage rate to get: a fixed-rate mortgage or a variable-rate mortgage. You can find out everything you need to know about&nbsp;<a href="https://huspy.com/blog/fixed-rate-mortgages-explained" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">fixed-rate mortgages here</a>&nbsp;in an article we published recently. But today, we’re going to look at the advantages and disadvantages of a variable-rate mortgage so you can decide if it’s the right one for you. What is a variable-rate mortgage? A variable-rate mortgage does what it says on the tin: it varies! That’s because the interest rate is&nbsp;not&nbsp;fixed for any set period of time, like a fixed-rate mortgage. Most variable mortgages have their interest rates linked to the Emirates Interbank Offered Rate (EIBOR), which is published by the&nbsp;<a href="https://www.centralbank.ae/en/services/eibor-prices" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">UAE Central Bank</a>&nbsp;and is based on the average interest rates UAE banks offer. These rates are linked to 1, 3, 6, or 12-month EIBOR. With a variable-rate mortgage, your interest rates can go up or down over time, meaning your monthly payments can vary. What is an offset mortgage? Offset mortgages are a bit different. It’s where instead of keeping your mortgage completely separate from your day-to-day finances, you combine your mortgage with your regular income and outgoings into a single account. The main benefit of this type of mortgage is to pay less interest and reduce the length of the mortgage term. Advantages of variable-rate mortgages: <ul><li>You’ll benefit from any drop in the EIBOR rate, and with that, your monthly payments will decrease. If EIBOR rates remain low, you may end up paying less interest over a significant period of your mortgage term.</li><li>Variable-rate mortgages tend to be better for medium- and long-term mortgages where you will avoid paying the higher reversion rate once the fixed-term period comes to an end. Payments may only rise or decrease slightly, instead of sharply.</li></ul> Disadvantages of variable-rate mortgages: <ul><li>Your payments can fluctuate from month to month, making it difficult to budget and plan your finances. If you want peace of mind, a fixed-rate mortgage may be a better option.</li><li>Your payments may&nbsp;increase&nbsp;if the EIBOR rate rises.</li><li>Watch out for banks that charge a ‘minimum floor rate’. This is where they charge the EIBOR rate plus an additional margin so when EIBOR is low, the banks will be able to make extra profits.</li></ul> &nbsp;Looking for a mortgage? We can help&nbsp;If you need help finding the best mortgage offers tailored to your needs, then we can help. We’re the first entirely online mortgage broker in the UAE that offers a faster and easier mortgage experience. If you have any questions, then give our friendly in-house team of mortgage specialists a call on +971 58 106 8459 or send us an email at hi@huspy.com.

A variable-rate mortgage does what it says on the tin: it varies! That’s because the interest rate is not fixed for any set period of time, like a fixed-rate mortgage. 

Variable-rate mortgages explained

Mortgage interest rates are one of the most important factors to consider when it comes to your mortgage. They will determine what your monthly mortgage payments will be and how much over the mortgage term you’ll have to pay back to the bank in interest. In this article, we’ll take a look at what your options are, how to get the lowest rates. What is a mortgage interest rate? Your mortgage interest rate is what it costs each month to finance your property. In addition to the capital, you’ll be paying for your home, you must also pay an additional fee every month in the form of an interest rate to your bank. This is what the bank charges you in exchange for letting you use its money to buy a home, and it is part of your monthly mortgage repayment. Interest rates are calculated as a percentage of your mortgage’s balance. How are mortgage interest rates set? Interest rates are decided by a combination of factors, including economic factors, market conditions, and bank rates. A strong economy usually leads to higher interest rates; on the other hand, a weak or slow-growing economy leads to lower interest rates. Banks make their own decisions in terms of how much interest they want to charge for lending, but these decisions are always influenced by the state of the economy. Banks will compete with each other by offering attractive rates to tempt buyers to choose them. There are also various types of interest payments, as we discuss in the section below. What mortgage interest rate will I pay? Mortgage interest rates are either fixed or variable. Fixed-rate mortgages A&nbsp;<a href="https://huspy.com/blog/fixed-rate-mortgages-explained" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">fixed-rate mortgage</a>&nbsp;is where the interest rate you pay on the loan is “fixed” at a lower rate for a set period. In Dubai, this is usually between one and five years. Typically, the longer you fix for, the higher the interest rate will be. Variable-rate mortgages With a&nbsp;<a href="https://huspy.com/blog/variable-rate-mortgages-explained" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">variable-rate mortgage</a>, your interest rates can go up or down over time, meaning your monthly payments can vary. Most variable mortgages have their interest rates linked to the Emirates Interbank Offered Rate (EIBOR), which is published by the&nbsp;<a href="https://www.centralbank.ae/en/services/eibor-prices" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">UAE Central Bank</a>. How mortgage interest rates impact the market While mortgage rates don’t directly impact home prices, they do influence housing supply - which&nbsp;does&nbsp;play a role in house prices. If mortgage rates go up, homeowners will be less likely to sell their property. This means fewer properties will be available on the market for sale, driving demand up, and prices with them. When rates are low, homeowners have more of an incentive to sell their properties. This means more options will be available on the market, which swings the market in the favour of the buyer. How to get the best mortgage interest rates With so many mortgage options out there, and with each bank offering different rates, it’s always important to shop around to find the best mortgage terms that suit your circumstances. In most cases, you’ll need to meet the criteria to qualify for the best rates on offer: <ul><li>Have a good credit score.&nbsp;Lenders will check your financial history when assessing your application to make sure you will be able to repay your mortgage loan, so make sure you have a good credit history.</li><li>Save for a bigger deposit.&nbsp;The bigger your deposit, the better your rates will be. That’s because if you have a bigger deposit, your loan-to-value ratio (LTV) will be smaller. In other words, you’ll be borrowing a smaller percentage of the property price, and will therefore be considered less of a risk than someone with a higher LTV.</li><li>Look around!&nbsp;There are hundreds of different mortgage options, so make sure to shop around. Need help with that?&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Try our mortgage calculator</a>&nbsp;to find the best mortgage deals for you!</li></ul> Want to compare the best mortgage deals? At Huspy, we compare over 500 mortgage options in seconds to help you find the perfect mortgage match. All you need to do is answer a few simple questions first. Give our&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;a try now!&nbsp; Or if you’d prefer, you can speak to one of our in-house mortgage experts for free. We’re not interested in charging you, we just want to help you find your perfect home. Get in touch with our team today by calling us on +971 58 106 8459 or send us an email at hi@huspy.com.

Interest rates are decided by a combination of factors, including economic factors, market conditions, and bank rates. A strong economy usually leads to higher interest rates...

How do mortgage interest rates work?

So you’ve sent your mortgage application off to the bank for approval...but it gets rejected. Has this happened to you? Don’t worry, you’re not alone. Lots of people get their mortgage applications rejected for a variety of reasons. That’s because a mortgage is a significant investment for a lender to make, so they want to make sure their money is going to someone they can guarantee will pay it back. Some common and specific issues tend to hold people back when applying for a mortgage loan. The good news is that many of these can be avoided. Let’s take a look at what those are and how we can help. Credit score Your credit score gives lenders a summary of your financial history and health, and lets lenders know if you are a reliable and trustworthy individual who will be able to manage mortgage repayments. It’s a key factor in Dubai and the UAE when it comes to applying for a mortgage. If you have a poor financial history and low credit score, it may negatively affect your application. You can check out&nbsp;<a href="https://huspy.com/blog/4-tips-to-improve-your-credit-score" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">this article</a>&nbsp;on how to improve your credit score. But the main things to do are; responsibly manage any debts or credit card payments you have, try to keep your credit utilisation low, and don’t make too many credit applications within a short space of time. Age and nationality You must be at least 21 years old to apply for a mortgage in the UAE. There is also an upper age limit set by most banks: 65 years if you are a UAE expat, and 70 years if you are a UAE national or self-employed. Where you come from is also a factor. If you come from a country that is currently being sanctioned by the US, then UAE banks are unlikely to lend to these nationals unless they have lived in the UAE for many years (usually upwards of ten years). Employment In the UAE, simply being employed by a company is not enough to guarantee to get your mortgage application approved. Banks prefer lending to people who work for companies that are established, stable, and have a strong future. For example, people who work at companies that have been established two years ago or less will find it difficult to get approved for a mortgage. Also companies without a physical office presence i.e. those who hot desk or work from home will also struggle to get approved by banks because of what banks perceive as greater financial risk. For certain Islamic lenders, only companies in industries that are Sharia-compliant will be able to get a mortgage loan. For example, those who work in nightclubs or bars will not get financed. As a general rule, banks will consider the following points when reviewing your mortgage application: <ul><li>Company size</li><li>Established history of the company</li><li>Projected stability</li><li>Company reputation (e.g. any negative media coverage)</li><li>Industry in which the company operates (banks are being stricter with some industries currently, such as aviation, because of the pandemic. However this varies on a case-by-case basis).</li></ul> Affordability Calculating your debt-to-burden ratio, or DBR, helps banks see if you can meet your monthly mortgage repayments. Banks usually do this by taking 50% of your salary and then deducting your monthly financial commitments (this is specific for loan and credit repayments). If you have nothing left, then you are likely to fail the test and get your mortgage rejected because your debt ratio is too high. Before applying for a mortgage, it’s worth reviewing your financial situation and liabilities. Make sure you can comfortably cover your mortgage repayments as well as your regular outgoings once half of your salary has been removed. Once you can do this, you’re in the right place to consider a mortgage application. The stress test Regardless of whether you get a variable or fixed-term mortgage, your interest rates will likely increase over your mortgage term. To make sure you can handle these fluctuations, lenders will perform what’s called a “stress test” on your mortgage repayments. This considers what your repayments will be like if interest rates are higher than what they are today. So make sure you can comfortably afford the mortgage and will have money to spare, otherwise, you will be found out. Misrepresentation This one goes without saying...tell the truth! Every bank will do their due diligence and research on you, so if there are any discrepancies in your application then they’ll find out. That’s why it’s important to disclose all your circumstances honestly. If you have any problems you are concerned about disclosing then you can speak to our team for advice. We can suggest a lender that may be more understanding of your situation. Search the best mortgage options with Huspy Getting rejected by one bank doesn’t mean you’ll get rejected by them all. Every bank in the UAE has different criteria for lenders. The difficulty is finding the right one for you! At Huspy, we can help you find the very best mortgage deals on the market that match your specific needs. Get in touch with our team today by calling us on +971 58 106 8459 or send us an email at hi@huspy.com.

Some common and specific issues tend to hold people back when applying for a mortgage loan. The good news is that many of these can be avoided. Let’s take a look at what those are and how we can help.

Why did my mortgage application get rejected?

Buying a house in Dubai may seem like a distant dream for many living in Dubai because of the high down payment requirements. So here’s a list of 6 helpful tips that will get you on the right track for your saving goals. Soon enough, you’ll be ready to pay for your dream home! What is the minimum down payment in Dubai? UAE law requires UAE nationals to have a down payment of at least 15% of the property value, and non-UAE nationals to have a down payment of at least 20% on properties less than AED 5 million.&nbsp; That goes up to 30% and 35% respectively if the property is over AED 5 million, and it goes up further still to 40% and 45% for UAE nationals and non-nationals if you’re buying your second property. And don’t forget, alongside the down payment you’ll have to pay roughly 7% of the property’s value upfront in additional purchase costs, eating further into your savings. In other words...that’s a lot of money to save! So if you’re serious about buying your first or second property, you’ll need a clear savings plan. 1. Calculate your down payment with Huspy’s mortgage calculator If you know how much you want to spend on a house, the first thing to do is find out how big a down payment you will need to pay. Our&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;can quickly and easily calculate exactly how much you will need to save for your property’s down payment. All you need to do is enter the property price and our calculator will automatically tell you how much you’ll need to save. Give it a go! 2. Set a savings goal Once you know how much you will have to save, the next step is setting out a savings plan based on how much you earn, how much you can afford to save each month, and how soon you want to reach your savings goal. If you want to reach your goal sooner, in the next three to five years, then you will likely need to save more compared to if you are thinking about getting a house much later down the road. So consider your priorities, how much you can seriously afford to put aside each month, then stick to it! 3. Clear your debts The more debt you have, the more difficult it is to save. Because if you have credit card or loan debts chipping away each month at your income, then that’s less money to put aside for your future home. So this should be top of your list of priorities - becoming debt-free! 4. Open a savings account If you don’t have one already, then now is the time to open a savings account. It’s a simple step to take but will make all the difference if you want to achieve your savings goal.&nbsp; While interest rates are typically less than 1% on savings accounts in the UAE (and so not that great for getting the most out of your savings), it’s an essential step that will help you create a separate pot from your regular spending or even holiday savings account.&nbsp; 5. Start budgeting! If your long-term goal is to save as much as possible each month, then it’s a good idea to work out exactly how much your monthly expenses are versus how much you&nbsp;need&nbsp;to be spending each month to save.&nbsp; Work out the total cost of your rent, utilities, car, mobile bills, and other regular outgoings by putting them into a simple spreadsheet or budget app. You’d be surprised how much just seeing and paying attention to your regular outgoings keeps you mindful of overspending - especially when you’ve got a 15% or 20% down payment as a target! 6. Downsize into a cheaper apartment Living somewhere like the Dubai Marina while trying to save for a down payment may not be the best way to save. Of course, we all want to live comfortably, in a nice apartment, in a great area. But when it comes to saving for a down payment, you may need to reconsider and reprioritise. Moving into a more affordable apartment in a cheaper area will go a long way towards helping you save towards your dream home. Once you’ve got your down payment, it’s time to get pre-approved Once you’ve done the hard work of saving all that hard-earned money towards your down payment, the next step is getting pre-approved for your mortgage. You can speak to one of our independent mortgage advisors free of charge to assess your mortgage eligibility. Alternatively, you can&nbsp;<a href="https://huspy.com/getStarted/offerState" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">get started online</a>&nbsp;by answering a few personal questions about your income, liabilities, and how much savings you have and we’ll be able to determine whether or not you should qualify for pre-approval from a bank of your choosing. Get in touch with us today by calling +971 58 106 8459 or send us an email at hi@huspy.com.

Here’s a list of 6 helpful tips that will get you on the right track for your saving goals. Soon enough, you’ll be ready to pay for your dream home!

How to save for your down payment

Thinking about buying an investment property in Dubai? We don’t blame you. Investing in property can be a great way to build wealth and generate income. And Dubai real estate offers some of the most attractive rental yields in the world. Yet there are many sides to consider before leaping into Dubai’s real estate market to ensure you get the best possible returns. Should I invest in Dubai? <ul><li>Growing city.&nbsp;The population of Dubai in 2000 was just 862,000. Fast-forward to today, and the population is approximately 3.4 million. That’s enormous growth! This growth makes it one of the fastest growing cities in the world, which means it’s there for the foreseeable future, there will always be high demand for new real estate.</li></ul> <ul><li>High rental yields.&nbsp;Properties in Dubai provide an average yield of between 5-9%. That’s significantly higher than many other mature real estate markets, such as London (2.7%), New York (2.9%), or Hong Kong (2.4%).</li></ul> <ul><li>Favourable tax conditions.&nbsp;Specifically, there is no property tax or stamp duty to pay on properties in Dubai which are typical in other countries, making Dubai a hugely attractive investment opportunity for buyers. However there is a 4% transfer fee to be paid to the Dubai Land Department which you should keep in mind.</li></ul> What to consider when selecting an investment property If you are considering investing in property in Dubai, then a strong return on investment (ROI) is the main goal. Some of the main factors to consider that can influence your ROI are the following: <ul><li>Location</li><li>Size</li><li>Quality</li><li>Market conditions</li><li>Interest rates</li><li>Maintenance costs (RERA Service Charge and Maintenance Index)</li><li>Facilities available in the community</li><li>Proximity to transport, education, etc.</li></ul> Tips for achieving a strong ROI on your investment <ul><li>Apartments provide stronger rental yields. Apartments are considered better than townhouses or villas because of Dubai’s large low-to-mid income population who are looking for more affordable homes.</li><li>Go for smaller apartments in affordable communities. Make sure these properties are close to essential transport and amenities.</li><li>Resale of smaller properties is faster. They also offer better value because these types of properties cater for Dubai’s significant expat population.</li></ul> Are there any downsides to investing in Dubai? <ul><li>Down payments.&nbsp;The minimum deposit you will need is 15% for UAE nationals and 20% for UAE non-nationals.</li><li>Upfront costs.&nbsp;Additional transaction costs are usually estimated at 7% of the purchase price.</li><li>Maintenance fees.&nbsp;Annual charges payable to the property developer can impact your overall ROI. Apartments typically have higher service charges per square foot compared to villas due to higher maintenance costs for communal areas.</li></ul> Ready to invest in a Dubai property? High rental yields in one of the fastest growing and ever-expanding cities in the world means that Dubai is certainly an attractive prospect for investors and home buyers. But as with everything in life, there can be downsides! So make sure to weigh up your options, and if you decide to leap into Dubai real estate, then take into consideration things like location and how to get the best ROI from your investment. Looking for mortgage advice? You can speak to one of our in-house mortgage experts for free. Get in touch with our team today by calling us on+971 58 106 8459 or send us an email at hi@huspy.com.

Dubai real estate offers some of the most attractive rental yields in the world. Yet there are many sides to consider before leaping into Dubai’s real estate market to ensure you get the best possible returns.

Is Dubai a good place to buy an investment property?

If you have lots of spare cash and you don’t know what to do with it, then you may consider overpaying your mortgage a good option. Never thought about it before? Then keep reading to find out if it's for you or not! What is a mortgage overpayment? Mortgage overpayments are extra payments towards an existing mortgage loan. While your fixed monthly repayment amount is set by your lender, it’s possible to pay an additional amount on top of this. This can be done in two ways. First, you can pay through a lump sum payment, for example, if you have recently inherited money or received a bonus from work. The second is by increasing your monthly repayments if your salary has increased or your interest payments have decreased. Why would I want to overpay my mortgage? Mortgage debt is likely the biggest financial burden you will carry during your lifetime. When you consider monthly expenditures, your mortgage repayments will most likely be the biggest outgoing. So it’s natural that people want to clear this debt as soon as possible! And overpaying on a mortgage allows them to do just that. Depending on how much you choose to pay, mortgage overpayments can reduce the length of your mortgage term and reduce the amount of total interest you will pay on your loan. Main benefits of mortgage overpayments <ul><li>Reduces the time it takes to pay off your mortgage.</li><li>Reduces the amount of interest you need to pay.</li><li>Reduces the total repayment amount of your mortgage.</li></ul> What are the downsides of mortgage overpayments? When taking into consideration the enormous savings you could make when overpaying on your mortgage, the obvious answer is yes. But there are some possible disadvantages you should think about. Lender restrictions Check with your lender to see if there are any restrictions when it comes to overpaying. This is usually the case for fixed-term mortgages. Restrictions may come in the form of an annual cap on overpayments, a financial penalty for overpaying, financial penalties on overpaying too much, or no overpayments at all. Other debtsIt’s possible that you have more than one debt you’re paying off each month. Your mortgage is just one. And while a large amount of debt may seem like a burden, it is usually one of the cheapest ways to borrow money. Before committing to repaying, be sure your extra cash could not be put to better use like paying off high-interest credit cards or loans, which are far more expensive ways to borrow money. Once it’s gone, you can’t get it back Overpaying is not like putting money into a bank account which you can later take back if you desperately need it. Once it’s gone, it’s gone. So make sure you have enough saved up in a separate pot for financial emergencies and only use your spare cash for mortgage overpayments if you are able to comfortably. So, should you overpay your mortgage? The answer to that is...it depends! If you are financially secure with a good salary, a large emergency savings funds, and you’re not busy paying off other high-interest debts, then overpaying your mortgage may be a viable option for you to cut the length of your mortgage term and reduce your interest. If, however, you have lots of other higher-priority debts you need to pay off and are just about meeting your existing monthly repayments, then overpaying your mortgage may be a risk and should be at the bottom of your list. Looking for a mortgage? Huspy is an online mortgage broker that compares over 500 mortgage options in seconds to help you find the perfect mortgage match. Why not give our online&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;a try!&nbsp;Or if you’d prefer, you can speak to one of our in-house mortgage experts for free. We’re not interested in charging you, we just want to help you find your perfect home. Get in touch with our team today by calling us on +971 58 106 8459 or send us an email at hi@huspy.com.

Not sure? If you have lots of spare cash and you don’t know what to do with it, then you may consider overpaying your mortgage a good option. 

Should I overpay my mortgage?

So you’ve found your dream home. The next step is deciding what to offer. This is one of the most stressful parts of the home buying process! Offer too much, and you might end up wasting thousands. Offer too little, and you might get outbid by somebody else willing to pay more. In this article, we’ll take a look at some of the signs you might be overpaying on a property and the best ways to avoid it. Is the listing price different from other homes in the area? Instead of looking at the value of other homes in the neighborhood, buyers should be looking for how much people have actually paid for similar homes most recently. If a home is significantly higher in price than homes of a similar size in the nearby area, then make sure to find out why. The home has spent a long time on the market If a home has spent months on the market, then it usually means it’s overpriced. This might give you some leverage in terms of negotiating power, so it does have its advantages.&nbsp; The home has hidden maintenance or foundational problems Even if a home doesn’t have a huge price tag, you still want to make sure you’re getting good value for money. If there are hidden maintenance costs that will end up costing you thousands throughout your ownership, you may want to reconsider or negotiate your offer. How to avoid overpaying on a property: Research house prices in the area.&nbsp;Comparing sold properties in the area will give you the best indication of whether you’re overpaying or not. Try to look at similar types of properties in terms of size, number of bedrooms, and outdoor space. Also take into consideration things like proximity to transport hubs, as this will increase the property value. Find out as much as you can about the property. How long has it been on the market for? How much has it sold for previously? Have any previous sales fallen through? The more you know about the history of the property, the better. If the seller has had trouble selling in the past then they are more likely to accept a lower offer.&nbsp; Negotiate! Your bank will appoint a valuation company to do an independent valuation of the property’s market value. If the valuation comes in lower than the price you’ve agreed to pay, there may be room for revising down your original offer.&nbsp; When in doubt, hire a real estate agent.&nbsp;Struggling to find a home at a good price? Hiring an expert might be the best thing for you in this case. Real estate agents are professional on how to get a good price on a home and will be able to give you the inside scoop on location, properties in the area, market trends, and more. Looking to get a mortgage? Need help finding the best mortgage offers with the lowest interest rates? Then give our friendly in-house team of mortgage specialists a call on +971 58 106 8459 or send us an email at hi@huspy.com.

So you’ve found your dream home. The next step is deciding what to offer. In this article, we’ll take a look at some of the signs you might be overpaying on a property and the best ways to avoid it.

Are you paying too much for your home?

If you are looking to free up some cash in your monthly budget, reducing your mortgage repayments is a great way to start. Your mortgage repayments normally account for a large chunk of your salary, around 30-40%. There are a few ways to reduce this, depending on your situation.&nbsp;&nbsp; Make a larger down payment&nbsp; If you are able to, paying more upfront can reduce your monthly repayments. The more you put down, the lower your repayments will be and the less interest you will pay overall. Of course, this is only an option if you can financially afford to put down a large sum of money and still comfortably keep up with your other financial commitments (and have some savings spare for a rainy day).&nbsp;Choose an offset product&nbsp; If you have a large sum of money in your current account you can tie it to your mortgage with an offset product. This is a product that allows you to keep your cash capital available to you while offsetting the cash in your account against your mortgage payments, saving you from paying interest fees. If you withdraw money from your current account you will only be charged interest on the difference between your loan amount and the cash balance available in your current account.&nbsp; Refinance your mortgage Refinancing your mortgage at the right time can end up saving you thousands of Dirhams. Refinancing is often used to get better interest rates &amp; negotiate other terms of your mortgage. Watch out for the upfront costs that are often involved in refinancing to see if it’s worth it for you! Want to learn more about refinancing your mortgage? You can find all the details in our ‘<a href="https://huspy.com/blog/should-i-refinance-my-mortgage" rel="noopener noreferrer" target="_blank">Should I refinance my mortgage</a>’ blog post.&nbsp; Not sure what is best for you?&nbsp; <a href="https://huspy.com/" rel="noopener noreferrer" target="_blank">Huspy</a> and our team of in-house mortgage experts are here to help you answer any questions you have. We can help you find the right option for you and guide you through the process from start to finish. You can call us on +971 58 106 8459 or send us an email at&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>.&nbsp;

Looking to free up some cash? Reducing your mortgage repayments is a great way to start. 

3 ways to lower your mortgage repayments

We are in the middle of a digital revolution that is radically changing the way we live. Food delivery, ordering a taxi, booking a holiday to the way we bank...the digital transformation taking place is not only changing how we live but changing our expectations along the way. We want faster, seamless digital experiences, personalized products, and greater flexibility. Nowhere is this more apparent than in the mortgage industry. According to&nbsp;<a href="https://www.infosys.com/services/digital-interaction/documents/transforming-mortgage-experience-digital.pdf" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">industry surveys</a>, 80% of potential borrowers would prefer an entirely online mortgage loan application process. While the majority of the industry lags behind, there are some key digital players who are disrupting the industry to provide a better overall customer experience for home buyers. What’s driving digital change? The biggest challenges that are driving the adoption of digital mortgages are: Lack of transparency With so many stakeholders involved in the mortgage process, it’s difficult for the real estate industry to give home buyers the transparency and visibility they crave. Banks, mortgage brokers, and real estate agents are all involved at some stage, increasing the complexity of the process, which translates into a loss of visibility for borrowers. High operational costs Mortgage costs are one of the biggest challenges to the existing mortgage process. Additional upfront fees when buying property in the UAE can add up to 7% of the property value. Real estate agency and mortgage broker fees alone can add up to 2.5% of the property value given the labour and hours involved in the traditional process.&nbsp; While in banks, the process of underwriting can be internally inefficient and requires the involvement of 5 teams (sales, credit, operations, product, PRO). This fragmentation results in a much longer turnaround and higher overhead costs.&nbsp; Long processing times The traditional mortgage process can take several months to complete from start to finish. The mortgage application alone, with all the documents that are required and the verification steps from different sources, all being done manually, can significantly slow the process down. Add to that the legal work that is exchanged between multiple parties and sellers and buyers, which means there is lots of room for improvement. Poor customer experience Why can’t applying for a mortgage be simpler? Easier? Less stressful than it currently is? A long, disjointed, frustrating mortgage process has left a lot to be desired from the perspective of the consumer. Today’s consumers are extremely sophisticated, have unlimited access to information, and demand more from businesses, including lower prices, more convenience, and greater speed - all qualities lacking in the mortgage industry.&nbsp; How technology has overcome these challenges Digital technology promises to eliminate many of the challenges mentioned above. Prop-tech companies such as Better in the US, or Trussle and Habito in the UK, are already leading the way globally by solving the mortgage challenges of consumers and creating an entirely digital experience that’s easier, faster, and more enjoyable. Some of the best ways that tech is enabling companies to create value for customers are: Seamless, online experience Digital technology and online tools allow companies to create a smooth, hassle-free loan application experience. Uploading documents to a single online portal speeds up the application process; online chat or WhatsApp options allows for a mobile-first approach; intuitive designs that improve the user experience; auto-fill forms so users don’t have to fill in a section for which they have already provided data. While data shows that&nbsp;<a href="https://www.housingwire.com/articles/48412-ellie-mae-borrowers-want-more-human-interaction-in-their-digital-mortgage-experience/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">home buyers still want human interaction</a>&nbsp;and support throughout the mortgage process, an expectation for convenient, digitally-led features will only become more vital for younger generations looking to get on the property ladder. Faster, personalized mortgage offers Finding the best mortgage deal for you is one of the most intimidating parts of the traditional process. You can end up searching for days without getting any closer to see if the mortgage products you’ve shortlisted are the best ones for your specific circumstances. Yet for digital-first mortgage companies,&nbsp;manual searches are becoming a thing of the past. By leveraging computer-based algorithms, mortgage companies can cut the search time from days to a matter of seconds. And where searching manually may only cover a fraction of the total number of mortgage products, technology allows you to cover a much broader range of products.&nbsp;<a href="http://huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>, for example, lets you search over 500 mortgage options in seconds to find the best deal for you. Finally, by entering a few details, these companies can also make sure to filter for the mortgage options that are suitable for your specific needs. Increased transparency and visibility As already discussed, each mortgage transaction involves multiple stakeholders - banks, real estate agents, mortgage brokers, credit rating agencies, and regulatory agencies. All of which makes it difficult to provide full visibility.&nbsp; Yet modern digital platforms allow users to keep track of their application progress in one place. These unified platforms are transforming the way brokers, agents, banks, and homebuyers all communicate with each other and allow the home buyer to keep updated on the various stages of the application - from mortgage application to legal work, to final transfer of deeds, consumers can now stay informed from start to finish. Lower costs for the consumer One of the great benefits of digital technology is allowing online mortgage companies to reduce unnecessary operating costs. For example, many online mortgage brokers don’t charge any upfront fees and get their commission from lenders instead. This means they can operate independently and solely in the interest of the customer. Looking ahead While still lagging behind other digital disruptors such as Netflix, Airbnb, Uber, and Amazon, online mortgage experiences are expected to become the norm for future generations who are demanding seamless, transparent and, stress-free digital experiences. The mortgage companies that can change with the increased expectations of the consumer will be the most successful ones. Huspy is the first entirely online mortgage broker in the UAE. We believe that customers are massively underserved when looking to buy a home, and want to replace an outdated system with modern, digital technology to give people better rates, 3x faster financing, and a better overall mortgage experience. Find the best mortgage offer tailored to your needs by giving our&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;a go!

 We are in the middle of a digital revolution that is radically changing the way we live. We want faster, seamless digital experiences, personalized products, and greater flexibility.

4 ways technology is changing the mortgage industry

So you’ve decided to buy a property, amazing! But now what? You’ll most likely need a mortgage to finance it. There are so many different mortgage providers &amp; mortgages to choose from it can be overwhelming at first. We’ve put together five tips to help you navigate the process of deciding which mortgage provider to choose so you end up with the best mortgage with the least hassle.&nbsp; Read reviews&nbsp;Check testimonials and reviews. Buying a house will likely be the biggest purchase of your life, so you want to make sure the provider you choose has a history of happy customers, sticks to their promised timelines, and is easy to work with. This is a great way to spot red flags before you get into the nitty-gritty of financials.&nbsp; While online reviews are great, it’s sometimes hard to know which ones to trust. That’s why it’s always a good idea to also check in with your real estate agent. They should be able to give you honest opinions and recommendations on the mortgage providers they’ve worked with.&nbsp; Short-list&nbsp;&nbsp;Narrow down your options based on your research. You should be looking for the most attractive interest rates and the lowest mortgage fees (which can be anywhere from 0%-1%). It’s also important to check which providers have restrictions on mortgage overpayments, penalties for late fees, and other regulations that might impact you in the long run. Once you have your options narrowed down to two or three providers, you can do an even deeper dive and start to compare offers.&nbsp; Ask questions&nbsp;&nbsp;Don’t be afraid to ask questions. You want to be as informed as possible on all your options and have any doubts cleared up early on. The more you ask and understand, the better informed you’ll be to make a good decision. You should be clear on the whole process from beginning to end, timelines, and costs. Don’t know who to ask? Contact our in-house mortgage experts on +971 58 106 8459 or send us an email at <a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204);">hi@huspy.com</a>.&nbsp; Read the small print&nbsp;&nbsp;Don’t just skim the offers. Make sure you thoroughly understand all the details, ask even more questions, and know all the costs involved. You don’t want to be surprised with a higher mortgage fee than you expected at the end of the process, or end up paying more interest in the long run.&nbsp; Know how mortgages workThis may sound obvious, but the better you understand mortgages as a whole, the more informed you’ll be to ask questions, understand reviews, compare deals, and avoid being surprised by any hidden fees!&nbsp; A few key areas you should have some understanding of before you begin your mortgage search are the type of mortgage you are looking for, which&nbsp;<a href="https://huspy.com/blog/how-to-find-a-mortgage-broker-in-dubai" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">type of broker you are going to use</a>, how mortgage interest rates work, and the length of time you are planning to have your mortgage for.&nbsp; We’re here to help&nbsp; Don’t worry if this list seems daunting. Huspy and our team of mortgage experts can guide you through the whole process, from choosing your provider and securing the perfect mortgage for you to handling all the paperwork involved along the way. Even better, we'll do this all for free!&nbsp;Call us on +971 58 106 8459 or send us an email at <a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(17, 85, 204);">hi@huspy.com</a> and our mortgage experts will be happy to help you out.&nbsp;&nbsp;

There are so many different mortgage providers & mortgages to choose from it can be overwhelming at first. We’ve put together five tips to help you navigate the process.

How do you choose a mortgage provider? 

Taking out a mortgage is a pretty big deal. Probably the biggest financial loan you’ll take out in your lifetime. And here’s the thing...it’s not so easy to find the best mortgage that matches your specific circumstances and needs. With hundreds of different mortgage products out there, it’s easy to get tired of the never-ending Google searches as you look for the right mortgage for you. That’s where mortgage brokers come in. Brokers are qualified professionals who know the mortgage industry and all the complexities that come with it inside-out. But what questions should you be asking them? Here are six of the biggest questions you should be prepped with before calling or meeting with your mortgage broker… Why should I go to a mortgage broker instead of a bank? While going directly to a lender certainly has its advantages, a good mortgage broker will have good relationships with, and excellent knowledge of, a large number of lenders. The benefit of this is that you’ll get a broader understanding of the kinds of deals that might work for you, instead of being limited to multiple products of just one lender. How many lenders do you work with? As mentioned above, a good mortgage broker should have an excellent relationship with a range of lenders. This translates to more options for you! As they’ll have more scope to find the best deals with the lowest interest rates to suit your specific needs and circumstances. How will you help me decide which mortgage is best for me? This is an important one. By asking this, you’ll be able to gauge whether a broker prioritises&nbsp;your&nbsp;interest above their commission. Your broker should be able to walk you through each mortgage option in detail, explaining the various features, and why they think it will be best for your personal circumstances. How much will you charge? Fees when buying a property in the UAE can add up to 7% of the total value of the purchase price, and this isn’t taking into account mortgage broker fees. So it’s important to ask how much they charge. Traditional mortgage brokers typically charge AED 5,000 + VAT, or up to 0.5% of the property value. However online mortgage brokers like Huspy are 100% free. We don’t charge any hidden fees or extra costs. What documents do I need? This is another big one. Because a mortgage loan is so big - and therefore a huge risk to lenders - banks want to see as much proof as possible that you are a reliable, financially responsible borrower who will be able to pay back their loan without any issues. That proof comes in the form of paperwork. Lots of it. So make sure to ask them to send over a full list of all the documents you’ll need, which for UAE residents will include things like your Emirates ID, passport, proof of address, a salary certificate, and more. Psst...with Huspy, we make this easy for you. Our online portal means you can keep track of every document you need to in one place. Oh, and we’ll check everything for you before sending them over to the bank. What more could you ask for! What are the best interest rates available? Interest rates are a percentage fee of your total loan amount that banks charge for their loan. You’ll have to repay this amount monthly on top of your capital payments. So ideally you’ll want to find the lowest interest rates so you’re not having to pay more to the bank than necessary.&nbsp; Your mortgage broker will be able to give you a range of options with the lowest interest rates. Also make sure to ask about the long-term interest rates, as fixed interest rates expire after a few years, and may default to a higher interest rate. Looking for a free mortgage broker? You’re in the right place! Huspy is a 100% free online mortgage broker and we’re changing the way you can get a home loan in the UAE. How? Because we’ve brought the entire homebuying journey online! Making it easier, faster, and more enjoyable than ever before.&nbsp; Plus we’ve got a super helpful team of in-house mortgage experts here to help you every step of the way. So if you have any questions, or you’re thinking about using a mortgage broker to help you find your dream home, then give us a call on +971 58 106 8459 or send us an email at hi@huspy.com.&nbsp;

Brokers are qualified professionals who know the mortgage industry and all the complexities that come with it inside-out. But what questions should you be asking them? Here are six of the biggest questions you should be prepped with before calling or meeting with your mortgage broker.

6 essential questions to ask your mortgage broker

Thinking of buying your first property in Dubai? Buying a home is an exciting but often confusing process, especially for first-time buyers. That’s why it’s good to be as prepared as possible. There are a few things you can do before you even start looking at properties that will help make the buying process as smooth as possible.&nbsp; Work out your budget&nbsp; We’re all guilty of looking at homes that are way out of our budget when browsing online but when it comes to buying a property it’s important to know what your budget is. Your budget should take into account not only the price of the property but all other costs involved in the home buying process as well. These range from real estate agent fees, bank fees, deposits, mortgage broker fees (although there are some free options, like&nbsp;<a href="https://huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>), amongst others, depending on your situation.&nbsp; If you’re planning on taking out a mortgage, you should be clear on what you will be repaying every month. Depending on the type of mortgage you choose, this might vary - so you should always include a buffer in your budget to leave room if your monthly payments increase. You should also be aware of any additional monthly fees you may be responsible for with your property purchase, such as service charges and life and property insurance.&nbsp; Not sure what you can afford? Take a look at our ‘<a href="https://huspy.com/blog/am-i-eligible-for-a-mortgage" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage eligibility</a>’ blog for a deeper dive. You can also try out our&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>.&nbsp; Identify why you want to buy&nbsp;&nbsp; Why are you buying a property? This may sound like a simple question, but defining the reason you’re getting onto the property ladder in Dubai is important to know, as it will affect the questions you ask and the decisions you make down the line. What you decide will have an impact on the area you choose, the type of property, and the type of loan you may wish to take out. For example, if you’re buying to rent the property out &amp; make a profit, or at least cover your mortgage fees, you should have a good idea of what the current market price is and the potential rental yield of the property.&nbsp; Consult the professionals&nbsp; Buying a property is probably the biggest purchase you will make in your lifetime. There are a lot of intricacies involved, especially if you’re not familiar with UAE laws and regulations. That’s where the experts come in. When looking for your dream property in Dubai, a licensed real estate agent will be able to advise you on the best areas &amp; properties based on your criteria. Make sure to check they have a RERA license, are experts in the local market, and have good reviews from previous clients.&nbsp; When it comes to getting a mortgage, you can seek advice from a mortgage broker. They will help you navigate the often confusing process of finding the best mortgage &amp; handle all the paperwork that is involved. Don’t want to pay for mortgage broker fees? Use&nbsp;<a href="https://huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>&nbsp;&amp; we’ll guide you through the entire mortgage process from pre-approval to securing the best mortgage, all for free.&nbsp; Improve your credit score&nbsp; If you’re planning on financing your property purchase with a mortgage a healthy credit score can be helpful. A high credit score will put you in a good position to be approved for a mortgage, although there are other factors that you will also need to consider (you can see them all in our blog, ‘<a href="https://huspy.com/blog/how-to-get-a-mortgage-and-buy-a-property-in-dubai" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">how to get a mortgage and buy a property in Dubai</a>’). Worried you might have a low credit score? Learn how you can improve it in our blog ‘<a href="https://huspy.com/blog/4-tips-to-improve-your-credit-score" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">4 tips to improve your credit score</a>’. Get a mortgage pre-approval Getting a&nbsp;<a href="https://huspy.com/blog/what-is-a-mortgage-pre-approval" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage pre-approval</a>&nbsp;will put you ahead of the competition when buying a property and shows you’re serious. Some real estate agents won't even take you on a viewing without one, so it’s a good idea to do this before you start searching for a property. A pre-approval will also tell you exactly what the bank is willing to lend you, making it easier for you to get a realistic idea of what you can borrow and narrow down the properties you look at. While a pre-approval does not guarantee you a mortgage, it is an essential first step in financing your dream home.&nbsp; Buying a property is not a simple process. There are multiple stakeholders involved, laws &amp; regulations in place, and it’s often the biggest purchase of your lifetime. That’s why it’s important to understand the process from beginning to end so you’re fully prepared for the exciting journey of getting on the property ladder.&nbsp; Looking for mortgage help? If you’re looking for advice about the mortgage process, Huspy’s team of in-house experts has over 25 years of experience from the best banks in the region. Our service is free, so give us a call on +971 58 106 8459 or email us at hi@huspy.com. The best part? You don’t even have to leave the sofa!&nbsp;&nbsp;

Thinking of buying your first property in Dubai? There are a few things you can do before you even start looking at properties that will help make the buying process as smooth as possible. 

5 things to do before buying your first property in Dubai  

There are a lot of misconceptions about buying a property &amp; getting a mortgage in the UAE. We've listed the top four common misconceptions, and break down what is real and what is a myth.&nbsp; You need to be a top earner&nbsp;&nbsp; Property prices can be overwhelming, but it is possible to get a mortgage &amp; secure your dream home even if you’re not a top 1% earner! As long as you’re earning over 10k AED a month you could still be eligible for a mortgage. However, your salary, along with any existing liabilities, will affect your borrowing capabilities. Want a better sense of what you can afford? Try out Huspy’s&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;or contact us at hi@huspy.com - it’s free!&nbsp; Expats don’t qualify for a mortgage Even if you live outside of the UAE, or are only a resident of the country, you can still buy a property &amp; get a mortgage in the UAE. The process is slightly different for non-residents, residents, and UAE nationals, so you’ll need to be aware of your status and what that means for your buying and borrowing options. For example, minimum down payments for non-nationals is 20% whereas for UAE nationals it’s only 15%. You can find out more about the nuances of qualifying for a mortgage in our blog ‘<a href="https://huspy.com/blog/am-i-eligible-for-a-mortgage" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Am I eligible for a mortgage?</a>’&nbsp; You need a perfect credit score&nbsp; A healthy credit score is important for getting a mortgage, but if you have a lower score it doesn’t mean you’re completely out of the running. If your credit score isn’t where you want it to be, there are ways you can increase it. Take a look at our blog ‘<a href="https://huspy.com/blog/4-tips-to-improve-your-credit-score" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">4 tips to increase your credit score’</a>&nbsp;and see our tips on how to get your score where you need it to be.&nbsp; It’s risky to invest in the UAE&nbsp; As with any investment, there is risk involved. The UAE, however, has proven its worth in recent years for property investment as rental yields range from 5-9%, which is significantly higher than other major cities like London (2.7%), New York (2.9%), and Hong Kong (2.4%). The UAE also doesn’t have property tax or stamp duties, making it even more lucrative for those investing in the property market in the UAE.&nbsp; It can be confusing navigating all the intricacies of getting a mortgage and buying a property in the UAE, especially with so much untrustworthy advice out there. Don’t worry, our experts have over 25 years of experience in the UAE and can help you answer your questions. Just call us on +971 58 106 8459 or email hi@huspy.com - our service is completely free.&nbsp;

We break down four of the most common misconceptions about buying a property and getting a mortgage in the UAE. 

Common misconceptions: buying a property & getting a mortgage in the UAE

When it comes to getting a mortgage, there’s lots of jargon thrown around. The ‘mortgage stress test’ is one of these terms that you’ve probably never heard before. In this article, we’ll explain what it is, why it’s important for a lender as part of their decision-making process, and how it can impact your application. What is the mortgage stress test? The stress test is essentially an affordability test. It’s where lenders put your current financial situation ‘under stress’ to see if you could still pay your mortgage. For example, if interest rates were to rise, or if you were to lose your job, or get a new job with a lower salary...would you still be able to repay your mortgage without any problems? These are the questions lenders want answers to, and so the ‘stress test’ is an affordability assessment that will help them to get those answers. Typically, banks will ‘stress’ your finances and look at your affordability based on an interest rate of 1% or higher than the current rate offered. When do banks apply the stress test? Mortgage stress tests are part of the early stages of your application, usually taking place during the pre-approval process. If you don’t pass your stress test, then you may get approved for a lower amount by your lender.&nbsp; That’s why it’s important to get your finances in order many months before applying for mortgage pre-approval in order to give yourself the best chance of getting your application accepted. If you need advice on this, then our friendly team of in-house mortgage experts is here to help and can discuss a plan of action with you. Affordability - the main criteria for acceptance To pass the stress test, your affordability is taken into account. Your affordability is assessed by looking at your monthly income and subtracting your existing liabilities. If you have a lot of disposable income, then your affordability is high. If you find yourself running out of money towards the end of each month, waiting for that next payslip to come through, then your affordability is low. How banks do this is by calculating your Debt-Burden-Ratio (DBR). Your DBR is your monthly debts as a ratio of your income. Law in the UAE states that your total debt (including credit cards and loans) cannot exceed 50% of your monthly income. If you do, your mortgage application will be rejected.&nbsp;Affordability is one of the most important factors a lender will look at when assessing your eligibility for a mortgage.&nbsp;How can I pass the mortgage stress test? Here are some quick tips to help you get your finances in order to help you pass the stress test and get your mortgage application pre-approved: <ul><li>Live within your means.&nbsp;It’s easy to spend money.&nbsp;Too&nbsp;easy. But if you’re considering buying a villa or an apartment, then it’s time to get serious about how much you spend each month.</li></ul> <ul><li>Pay down your debt.&nbsp;Credit cards, loans, or whatever it may be, it’s important to stay within your credit limit. Lenders will only give loans to financially responsible people whose debt ratios are low compared to their income.</li></ul> <ul><li>Look for a property you can afford.&nbsp;It’s easy to view your own finances in a best-case scenario: “I’ll be getting a pay rise next year so I can afford this,”, you may be telling yourself. But this will mean buying a house you may struggle to afford&nbsp;until&nbsp;(and if!) you get that pay rise. Be sensible and look for a property well within your affordability instead of close to the edge.</li></ul> Need advice? Not sure if you’ll pass the mortgage stress test? You can try our mortgage calculator&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">here</a>&nbsp;to see how much you’ll need to repay each month to give you an idea of affordability. Or you can chat to our helpful team of in-house mortgage advisors who are here to help you every step of the way :) Give us a call on +971 58 106 8459 or send us an email at hi@huspy.com.&nbsp;

The ‘mortgage stress test’ is one of these terms that you’ve probably never heard before. In this article, we’ll explain what it is, why it’s important for a lender as part of their decision-making process, and how it can impact your application.

What is the mortgage stress test?

Unfortunately, mortgages aren't something you learn about in school. Often it’s only when you start to think about buying a home that you’re tasked with the somewhat overwhelming burden of figuring out what a mortgage&nbsp;actually&nbsp;is and how it works. Then you have to figure out where to get one and which provider to use. We break down what a mortgage is, how it works, and where to get one for you.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; What is a mortgage?&nbsp; In its simplest form, a mortgage is a loan from a bank in order to purchase a property. That property is then used as collateral for the money that is being borrowed.&nbsp; It is rare for someone to be in a position to purchase a property outright without borrowing money. Instead, most people pay a percentage of the cost up front (a down payment), normally around 20% for non-UAE nationals and 15% for UAE nationals, in the UAE, and borrow the rest with a mortgage. Over five to twenty-five years, depending on the terms of your mortgage, you’ll pay back the amount you borrowed plus interest, usually in monthly installments.&nbsp;&nbsp;&nbsp; How do mortgages work? There are many different types of mortgages that have varying terms and conditions, which affect how your repayments work and how long you will be repaying for. In the UAE there are several different types of mortgages that have varying repayment terms. You can learn more about the different types of mortgages in our blogs, ‘<a href="https://huspy.com/blog/fixed-rate-mortgages-explained" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">what is a fixed-rate mortgage</a>’ and ‘<a href="https://huspy.com/blog/variable-rate-mortgages-explained" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">variable-rate mortgages explained</a>’.&nbsp; Where do I get a mortgage from?&nbsp; There are a few ways to get a mortgage. If you are confident about doing the research and finding yourself the best deal you can go directly to your bank of choice. It can be confusing, however, as there are different types of mortgages and your borrowing capabilities will depend on your specific case. If you need help deciphering the different types of mortgages and what you qualify for, you can go to a&nbsp;<a href="https://huspy.com/blog/how-to-find-a-mortgage-broker-in-dubai" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage broker</a>. A mortgage broker uses their mortgage expertise to find you the best deals across all banks (although it’s worth checking they’re not tied to a specific lender). There are fees involved with traditional mortgage brokers, which is something you should take into consideration.&nbsp; If you want to avoid the extra fees but still need help understanding what mortgage is right for you, you can opt for an online mortgage broker (like&nbsp;<a href="https://huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>).&nbsp;&nbsp; What if I want to sell my property?&nbsp; If you sell your house before you’ve paid back your mortgage you’ll use the funds from the sale to repay the remainder of your mortgage in a single payment. If the value of your property is greater than what you paid, it means your property has equity. Equity is the difference between the value of the property and the amount owed on the property. If you have equity, when you sell your property you’ll keep the excess funds left over from the sale after you’ve settled your mortgage.&nbsp;&nbsp; Still have questions about mortgages? You can talk to our mortgage experts for free at +971 58 106 8459 or email us at&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>.&nbsp; &nbsp;&nbsp; &nbsp;

Unfortunately, mortgages aren't something you learn about in school. Don't worry though, we break down what a mortgage is, how it works, and where to get one for you.     

What is a mortgage & how does it work? 

You and your spouse are looking to buy a new home, and you’ll need a mortgage loan to do it. The question is...is it better for you and your spouse to get a joint mortgage? Are there financial benefits in doing so? In this article, we’ll take a look at some of the reasons why you should include your spouse on a mortgage in Dubai. So...can I buy property with my spouse? The short answer is yes! A husband and wife, or blood relatives, can apply for a joint mortgage. With a joint mortgage, each owner will be named on the property deeds and will be jointly responsible for repaying the mortgage. When you include your partner on your mortgage, you can specify the percentage share each investor has in the property, and this will be stated on the title deed issued by the Land Department on completion of the transfer. For most married couples, the percentage share will be 50/50. What are the benefits? The main advantage of including a spouse on the mortgage is that it gives you more buying power than if you apply by yourself. Lenders will take into consideration the total household income of you and your spouse when assessing how much you can afford. If both you and your spouse are earning a similar amount, then it can potentially double your affordability, meaning you can buy a bigger home. What information will my spouse need? In the UAE, a co-applicant will need to provide personal and financial details in the same way as the main applicant. This will include proof of ID, bank statements, proof of income, and the company you work for, among others details. However, if your spouse is unemployed, they will not necessarily need to provide proof of income. The most important thing is that the main applicant is able to demonstrate their ability to afford the mortgage payments over the long term on their income alone. Our&nbsp;<a href="https://huspy.com/calculator" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">mortgage calculator</a>&nbsp;is a useful tool that will help you understand what your monthly repayments could look like and what you can afford. What about keeping my spouse off the mortgage? We’ve spent most of this article talking about including&nbsp;your spouse on the mortgage. But there may be valid reasons to exclude them as well:<ul><li>Separate finances.&nbsp;Are you buying the house with money you’ve inherited, or saved up before getting married? Then keeping your spouse off the title is an option if you would prefer to keep your finances separate.</li><li>Estate planning.&nbsp;If you own the property, you can leave it to whoever you please. This might make sense if you have children from a previous marriage.</li><li>Protecting your assets.&nbsp;If your spouse has a poor credit history or has defaulted on loans in the past, it might be in your interest to keep them off the mortgage and title deeds to protect your home.</li></ul> Need mortgage advice? Chat to our in-house team of mortgage experts anytime by calling us on +971 58 106 8459 or send us an email at hi@huspy.com.

You and your spouse are looking to buy a new home, and you’ll need a mortgage loan to do it. The question is...is it better for you and your spouse to get a joint mortgage? 

Can I include my spouse on my mortgage?

A quick search on Google and you’ll already know that people have a lot of opinions on if it’s better to buy off-plan or ready properties in the UAE. We break down what off-plan and ready actually mean and lay out the pros and cons of both, so you can make an informed decision without endlessly scrolling through various articles.&nbsp; Off-plan&nbsp; Firstly, what does off-plan mean? Off-plan is when you buy directly from a developer before the property has been constructed. These are not ready to move into, normally from six months to three years, after you put down your initial payment of 20-50%. You’ll then pay 50-80% in a handover payment closer to the property completion date or over 2-3 years post-completion as part of a post-handover payment plan. Pros <ul><li>Usually priced below current market value&nbsp;</li><li>A large part of the payment is not required until much later in the process</li><li>Often developers offer incentives for off-plan properties&nbsp;</li></ul> Cons&nbsp; <ul><li>You don’t get an immediate return on your investment as you have to wait until the property is complete to either rent out, move in, or sell&nbsp;</li><li>Development delays can push back handover&nbsp;&nbsp;</li><li>Control is out of your hands until the property is complete&nbsp;</li><li>You can never be 100% certain the final product will look as marketed</li></ul> It’s also important to take into consideration potential changes in market valuation. This can work for or against you. When you buy off-plan the price of your future property will be valued at the beginning of the process. If the final market value of your purchased property when complete is less than the original valuation, and you are financing the handover payment with a mortgage, then your up front payment might be higher than what you had expected.&nbsp;&nbsp; However, if it’s higher you may owe a smaller amount than expected. As with any investment, there is risk involved with changing market values. Ready properties&nbsp; As the name suggests, ready properties are properties that are already constructed and ready to move into. For ready properties, if you opt to purchase the property with a mortgage you will need to pay between 15%- 20% up front (the down payment) and then pay the rest of the sale price over a number of years depending on your mortgage terms and conditions.&nbsp; Pros&nbsp; <ul><li>You have full control of the property as soon as you purchase it&nbsp;</li><li>You can start making money by renting it out, or save on renting yourself by moving in, immediately after purchase&nbsp;</li><li>What you see is what you get&nbsp;&nbsp;</li></ul> Cons&nbsp; <ul><li>You pay market value&nbsp;</li><li>Full payment required up front&nbsp;</li><li>You may need additional budget for any refurbishment costs</li></ul> It’s important you know what purpose you are buying a property for and your financial position as it will also inform your decision on whether you choose off-plan or ready. If you’re looking for some advice on how to fund a property purchase, whether off-plan or ready Huspy can help you out. Our team of mortgage experts will find you the best deals based on your personal circumstances, so give us a call on +971 58 106 8459 or email us at&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>.&nbsp;

We break down what off-plan and ready actually mean and lay out the pros and cons of both, so you can make an informed decision without endlessly scrolling through various articles. 

Should I buy off-plan or ready properties? 

Purchasing an off-plan property requires time and patience. After waiting for your property to be built, you want to be ready for your handover payment and have everything ready to finalise your purchase. If you're funding your handover payment with a post-handover payment plan, here’s what you need to do to be prepared and get the keys in your hand as soon as possible!&nbsp;&nbsp; But first, what is a handover payment? A handover payment is the final payment you make to secure your off-plan property purchase. In the UAE it’s normally 50-70% of the property price. And, it’s likely, you will need a mortgage to finance this cost.&nbsp; But, there is a lot to prepare for prior to the handover payment date. We’ve put together 4 tips to help you through the process with the least amount of stress.&nbsp; 4 tips to prepare for the handover payment: Understand your timeline&nbsp; Handover payments can sneak up on you, and if you haven’t started preparing for it in advance you could find yourself crunched for time. If you’re planning to finance your handover payment with a mortgage you will need to give yourself plenty of time to find the right mortgage for you and for the bank to process all your documents. It’s good practice to give yourself at least a 2-3 month window in order to complete the mortgage process. If you run into any issues you’ll have time to solve them and still get your payment in on time, avoiding any late payment fees to the developer. Make sure you have checked the agreed-upon date for the handover in your contract, so you know what date you’re working towards.&nbsp;&nbsp; Be prepared for market value changes&nbsp; Buying off-plan comes with risks, as does any investment. Your property’s valuation, which is agreed on at the beginning of the process, may not match the final market value when construction has been completed. If the final market value of your purchased property when completed is less than the original valuation and you are financing the handover payment with a mortgage, then your up front payment might be higher than what you had planned for.&nbsp; On the other hand, if the final market value is higher than the property’s original valuation you may have a lower down payment than expected!&nbsp; Also, you should take into consideration the UAE has a cap of 80% LTV (loan to value ratio) for residents of the UAE and 85% for UAE nationals, so if the value you need to borrow increases above 80%-85% LTV you will need to fund the difference out of pocket.&nbsp;&nbsp;Speak to an expert&nbsp; As with any big financial decision, it’s wise to consult a professional. For financing the handover payment, we recommend using a mortgage broker. A mortgage broker will know the nuances of funding an off-plan handover payment and will be able to find you the best mortgage for your specific needs. They will also have a deeper understanding of the time it takes to go through each stage of the process, so best to consult them early on (see point 1!).&nbsp; Get a pre-approval&nbsp; A mortgage broker will also guide you through the process of getting a pre-approval. A pre-approval will tell you, and your developers, what the banks are willing to lend you. Pre-approvals are normally valid for around 60 days, so you have a little breathing room. It is also a great way to give you peace of mind, as you get close to the handover payment! You can read more about pre-approvals in our blog ‘<a href="https://huspy.com/blog/what-is-a-mortgage-pre-approval" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">What is a mortgage pre-approval?</a>’.&nbsp; If you’re looking for more advice on an upcoming handover payment our team of mortgage experts at&nbsp;<a href="https://huspy.com/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Huspy</a>&nbsp;are here to help. Call us on +971 58 106 8459 or email&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>, our service is 100% free so reach out with any questions!&nbsp;

If you're funding your handover payment with a post-handover payment plan, here’s what you need to do to be prepared and get the keys in your hand as soon as possible!  

4 tips to prepare for your handover payment

Looking back at previous Expo host countries it is clear that Expo, more often than not, boosts the economy of the host country in a variety of ways, both pre and post-event. One of the most prominent ways is through growth in the host country’s real estate market.&nbsp;&nbsp; Since 2013 when the UAE won the bid to host Expo 2020 all eyes have been on the development of Dubai’s infrastructure to accommodate the event. From the Expo site itself to tourist attractions, hotels, and residential buildings, Dubai has seen a rapid increase in development projects over the last several years. The construction is set to continue even after the event itself is over. The 7bn dollar investment will continue to be used to build the Expo site into ‘District 2020’, a city in itself, that will have both corporate and residential facilities. This is due to open 6 months after the Expo event closes.&nbsp;&nbsp; So, what impact is Expo having on the real estate market now?&nbsp; Over the last five years, Dubai has been on a growing spree. Due to the increase in the number of properties coupled with the Covid-19 pandemic, the rise in real estate prices has slowed. The UAE is unique as it is one of the only Expo hosts in a newly developed country. Most previous Expo host countries, except Shanghai, have been ‘older’ developed countries. The UAE, in comparison to past Expo hosts, therefore, has more to develop and so this trend is not unexpected.&nbsp; Over the last six months, however, we have seen more growth in the market as we get closer to the event. As noted in&nbsp;<a href="https://www.arabianbusiness.com/real-estate/466390-expo-2020-dubai-expected-to-drive-real-estate-demand" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">Arabian business</a>, “Sales transactions in June 2021 were 44.33% higher in terms of volume and 33.2 percent in value compared to May 2021.”&nbsp; There is a huge opportunity for investors looking to capitalize on the current lower market prices with the expected capital appreciation during and post-event. With the inventory of available properties growing, it’s a buyers market in Dubai where sellers have to offer competitive pricing in order to sell.&nbsp; While the rise of property prices has slowed in comparison to past events, the bulk of the growth is expected to be seen in the aftermath of the event due to the expected influx of visitors and investors. What will the real estate market look like after Expo 2020? The ‘Expo effect’ is the 10 year period after the event finishes. It’s used to describe the continued positive impact that Expo normally has on the host country’s economy after the event ends. Of course, this includes the continued growth of the real estate market.&nbsp; Milan and Shanghai, both previous Expo hosts, saw an increase in property prices after the event despite a slowdown in the economy globally. Dubai is expected to follow this trend. The UAE’s response to the Covid-19 pandemic, with&nbsp;<a href="https://graphics.reuters.com/world-coronavirus-tracker-and-maps/countries-and-territories/united-arab-emirates/" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">92.4%&nbsp;</a>of its population fully vaccinated, companies back working in person, children back in schools, and travel fully open to all countries have all made the UAE an even more attractive option for businesses and individuals looking for a stable and safe country to move to. As well as this, over the last year, visa regulations have eased, especially for freelance workers and those looking to retire in the country. The Expo gives the UAE an opportunity to showcase not only its ability to conduct a world-class event but also to show tourists and businesses why they should invest in the UAE. The UAE has had more challenges than normal as the world continues to battle the Covid-19 pandemic, but the UAE, and its real estate market, have proven resilient and is set for more growth.&nbsp; Looking to invest?&nbsp; If you’re looking to buy a property in the UAE, speak to our in-house team of mortgage experts to see what options are available to you. Our service is completely free so give us a call on +971 58 106 8459 or email&nbsp;<a href="mailto:hi@huspy.com" rel="noopener noreferrer" target="_blank" style="color: rgb(74, 110, 224);">hi@huspy.com</a>&nbsp;with any questions you have.&nbsp;&nbsp;

Looking back at previous Expo host countries it is clear that Expo, more often than not, boosts the economy of the host country in a variety of ways, both pre and post-event. One of the most prominent ways is through growth in the host country’s real estate market.  

Expo 2020’s impact on the property market in the UAE

Buying real estate is one of the most common ways people invest their money across the world. Why? Because the potential for return is huge. But to understand why buying properties is viewed as a good way to invest your money you need to understand equity.&nbsp; Equity is the difference between the amount owed on the property, compared to the market value of the property. Equity can increase in two ways. Firstly, your equity increases slightly as you pay your monthly installments, decreasing the size of your mortgage. Secondly, if the market value of your property increases your equity also increases. But, if the market value decreases you lose equity. If the market value of the property is less than your mortgage your property will have negative equity.&nbsp; When you sell your property or take out an equity loan, you release the equity in your property. Equity can also be used to invest in more properties, complete home improvements or renovations, or invest in other assets, through an equity home loan also called an equity release loan, where you borrow against your existing equity.&nbsp;&nbsp; Why invest in real estate?&nbsp; What makes investing in property advantageous is the ability to leverage the bank's money, not just your own. When you buy a property with a mortgage you pay the down payment up front and borrow the rest. For UAE nationals the down payment is normally 15% and 20% for non-nationals. When buying a property, you not only invest the 15-20% you pay up front but the entire cost of the property, potentially giving you a much larger and faster return on your investment than traditional stocks.&nbsp; For example, if you purchased a property as a non-national, for 1 million AED you would pay 200,000 AED as your down payment. Despite investing 200,000 of your cash into the property you will still earn equity on the full 1 million price tag of the property. Essentially, you have a 1 million Dirham investment having spent only 200,000 AED. Thinking about investing?&nbsp; Thinking about buying a property in the UAE? Talk to our mortgage experts for advice on the best way to finance your property so you get the best return on your investment. Our service is completely free, so give us a call at +971 58 106 8459 or email us at hi@huspy.com.

Buying real estate is one of the most common ways people invest their money across the world. Why? Because the potential for return is huge. But to understand why buying properties is viewed as a good way to invest your money you need to understand equity.