As the property prices are hitting the bottom level in Dubai, astute investors have entered in the Dubai real estate market. With the slash in mortgage rates and the re-entrance of the mortgage lenders in the market, buyers are tempted to buy their own homes in Dubai. Even the foreigners are considering Dubai haven for the real estate investment again but due to non-familiarity with the local dynamics, they do not know how to navigate their way through the myriad of home loans.

Follow some simple steps to secure a perfect mortgage in Dubai.

Step 1: Hire a mortgage broker and ask him to assess all the mortgage options that can be available for you. Decide your budget first and let your broker then offer you multiple options. A good broker knows better terms and conditions and carries out necessary paperwork to close the deal smoothly.

Step 2: Decide which loan do you want (fixed or floating mortgage loan), the repayment period, and the terms of flexibility to move between the lenders. If you intend to pay the mortgage early, choose the loan that allows you to repay early at no extra cost. Moreover, choose the loan according to the deposit amount you have in hand. Mostly in Dubai, if you have deposit amount of 25% or above, all options of mortgage loans are almost open to you.

Step 3: To avoid the problems with the finance approval later on, get your approval in place before hand. Some banks in Dubai have no salary limit for the grant of loan while others require a salary of at least Dh 10,000 to Dh 15000. You are  required a salary letter, personal bank statements, credit card statements, proof of address, passport copy and visa page copy to get the approval which is valid for 90 days.

Step 4: The bank then conducts background check on you verifies the information provided by you. If you have ever committed default and your cheques were bounced, the bank will take it serious and the grant of the loan will totally be at its own discretion. The bank will check your credit rating and ability to pay and will then qualify you for a loan.

Step 5: The next step is to understand the fee structure of the bank. In addition to the deposit, you have to pay a fee of almost 4 to 5%, which includes arrangement fees, valuation fees, processing fees, transfer fees, mortgage registration fees, document fees and fees paid to the broker.

Step 6: Get a life insurance because life insurance is compulsory for the sanction of mortgage loan of Dubai property. Mostly Dubai banks require you to have the insurance provider of their choice but three or four banks are also there that allow you to sign your insurance own policy.

Step 7: The last step is to sign the contract or memorandum of understanding ( MoU) which defines the rights and liabilities arising out of the contract for both the parties. This agreement establishes parameters like fees involved, time of sale, date of transfer, agreed price, deposit, and balance of payments.

Congratulations! You have secured a perfect mortgage loan for yourself.