Get the mortgage first and the property second. Shop around, both on your computer and in the bank branches. Be willing to haggle. And be sure not to forget about all the ancillary costs. Harvey Jones speaks to the experts
It is easy to fall in love with a property. Arranging a mortgage to pay for it takes a little longer. With 31 mortgage lenders in the UAE, it is worth taking time to find the right deal for you.
You should get your mortgage in place before you start looking for property in earnest, says Raman Muralidharan, a regional head of customer value management at HSBC. "Once you have your approval in principle, you know exactly how much you can borrow, and your property price range. At that point, you can start property hunting seriously."
If you don't have your finance in place, you risk finding the property of your dreams, only to lose it because you're in no position to bid. Or you may lose the 10 per cent deposit that you are obliged to put down to secure a property, if you are subsequently turned down for home finance.
Under Central Bank rules, your monthly mortgage instalments, and other debt repayments, should not consume more than 50 per cent of your income.
You can get a rough idea of how much your mortgage will cost each month by using a free online digital calculator offered by many lenders, including HSBC, Mr Muralidharan says.
Many applicants simply go to their existing bank for a loan, but you may get a better deal by shopping around to compare rates and product features.
If that sounds daunting, you can ask a mortgage broker to do the legwork for you, says Sam Wani, certified mortgage adviser at Independent Finance, Dubai.
They can also can help with application forms, mortgage insurance, salary transfers, liability letters and other paperwork.
Or you can do it yourself, comparing deals at the growing number of price comparison websites, such as Souqalmal.com and Moneycamel.com. These show rates both from international banks operating in the UAE, such as Barclays, HSBC and Standard Chartered, and Islamic finance from local lenders such as EmiratesNBD, Mashreq and Abu Dhabi Islamic Bank.
These sites allow you to compare mortgage rates, loan-to-value ratios, maximum loan amounts and other mortgage features such as cash back, says Richard Paul, director of UAE valuations at the property broker Cluttons.
"It isn't too difficult to find the best deal yourself. Although mortgage choice is growing, it is nothing like, say, the UK, where there are more than 10,000 loans to choose from."
You might even be able to do a spot of haggling. "If you find a good deal from one lender, you could use that to get a better deal elsewhere. Lenders are unlikely to cut their headline rates, but they may offer, say, a lower fee or higher loan to value, depending on the product."
Legal fees tend to be lower than in the West and the conveyancing process swifter.
Personal factors will affect the type of loan you can get, or whether you are offered a loan at all. "You will be in a better position if you have been here sometime, have a stable job, a family, and are committed to the area. If you are single and have just been here for a few months, getting a mortgage can be tricky," Mr Paul says.
You might face obstacles you would never expect in the West, says Warren Philliskirk, associate director at Mortgage International Business Dubai. "Banks don't like two unrelated people buying together, whether partners and friends, and even other family members, although father and son is fine. It isn't a problem for single women, though."
Banks feel safer offering loans on villas. "Apartments are thought to be slightly more risky, because there is a greater supply, but many lenders will still offer mortgages on apartments on the same terms."
You are free to pay off your loan early, typically with a 1 per cent early foreclosure charge. Or if you want to borrow more money later, you can apply for a top-up loan from your own bank.
Expats can typically borrow up to 85 per cent of a property's value, and Emiratis 90 per cent. The Central Bank has suggested introducing a loans value cap to cool the property market that would reduce the maximum loan value to 75 per cent for expats and 80 per cent for Emiratis for initial purchases, and 65 per cent and 70 per cent for further purchases.
You also have to decide whether to take a fixed or variable rate mortgage, Mr Philliskirk says. "The most popular type of deal is a two-year fixed, with rates starting at around 3.99 per cent. You can get a five-year fix at 4.99 per cent but there is little interest in them, because few people expect interest rates to start rising in the immediate future."
These deals are much cheaper than before the financial crisis, when mortgage rates were as high as 9 per cent.
When working out how much you can afford, don't forget to calculate the cost of setting up a mortgage. This will include an arrangement fee, typically around 1 per cent of the loan value, a valuation fee of around Dh3,000, and the cost of compulsory life and household insurance.
If you use a mortgage broker, you will also have to budget for their fees.
That dream property could be yours. With a little effort, you can find a dream mortgage to pay for it.
business@thenational.ae
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
More from Neighbourhood Watch:
Huddersfield Town permanent signings:
- Steve Mounie (striker): signed from Montpellier for £11 million
- Tom Ince (winger): signed from Derby County for £7.7m
- Aaron Mooy (midfielder): signed from Manchester City for £7.7m
- Laurent Depoitre (striker): signed from Porto for £3.4m
- Scott Malone (defender): signed from Fulham for £3.3m
- Zanka (defender): signed from Copenhagen for £2.3m
- Elias Kachunga (winger): signed for Ingolstadt for £1.1m
- Danny WIlliams (midfielder): signed from Reading on a free transfer
SERIE A FIXTURES
Friday (UAE kick-off times)
Sassuolo v Bologna (11.45pm)
Saturday
Brescia v Torino (6pm)
Inter Milan v Verona (9pm)
Napoli v Genoa (11.45pm)
Sunday
Cagliari v Verona (3.30pm)
Udinese v SPAL (6pm)
Sampdoria v Atalanta (6pm)
Lazio v Lecce (6pm)
Parma v Roma (9pm)
Juventus v Milan (11.45pm)
Tewellah by Nawal Zoghbi is out now.
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%3Cp%3EThe%20sixth%20sanctions%20package%20will%20also%20see%20European%20insurers%20banned%20from%20covering%20Russian%20shipping%2C%20more%20individuals%20added%20to%20the%20EU's%20sanctions%20list%20and%20Russia's%20Sberbank%20cut%20off%20from%20international%20payments%20system%20Swift.%3C%2Fp%3E%0A
Juventus v Napoli, Sunday, 10.45pm (UAE)
Match on Bein Sports
TEST SQUADS
Bangladesh: Mushfiqur Rahim (captain), Tamim Iqbal, Soumya Sarkar, Imrul Kayes, Liton Das, Shakib Al Hasan, Mominul Haque, Nasir Hossain, Sabbir Rahman, Mehedi Hasan, Shafiul Islam, Taijul Islam, Mustafizur Rahman and Taskin Ahmed.
Australia: Steve Smith (captain), David Warner, Ashton Agar, Hilton Cartwright, Pat Cummins, Peter Handscomb, Matthew Wade, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Matt Renshaw, Mitchell Swepson and Jackson Bird.
Opening day UAE Premiership fixtures, Friday, September 22:
- Dubai Sports City Eagles v Dubai Exiles
- Dubai Hurricanes v Abu Dhabi Saracens
- Jebel Ali Dragons v Abu Dhabi Harlequins
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
THE SCORES
Ireland 125 all out
(20 overs; Stirling 72, Mustafa 4-18)
UAE 125 for 5
(17 overs, Mustafa 39, D’Silva 29, Usman 29)
UAE won by five wickets
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%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
LIST OF INVITEES
Shergo Kurdi (am)
Rayhan Thomas
Saud Al Sharee (am)
Min Woo Lee
Todd Clements
Matthew Jordan
AbdulRahman Al Mansour (am)
Matteo Manassero
Alfie Plant
Othman Al Mulla
Shaun Norris
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
UAE currency: the story behind the money in your pockets
Haircare resolutions 2021
From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.
1. 'I will seek consultation from professionals'
You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.
2. 'I will tell my hairdresser when I’m not happy'
Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.
3. ‘I will treat my hair better out of the chair’
Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.