Understand Home Buying Cost
Author: 4C Mortgage Consultancy | Category: Blogs | Date: October 16, 2017

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Your quick guide for a first-time home purchase, what are the costs involved in securing a mortgage? What are the different charges one has to pay?

 

 

Well, on top of the lending amount, there are certain miscellaneous charges which the buyer need to keep in mind while securing a mortgage in Dubai. These charges might vary with the lender to lender, hence it’s quite prudent to calculate the cost and keep your financial limit within your comfortable range. The bank will be charging property evaluation fee, processing fee, pre-approval fee, life and property insurance fee and then to register your property there are few Dubai land department charges as well, which include mortgage registration fee, Dubai land department trustee fee, transfer fee, title-deed charges, NOC charges and also the brokers fee. So on top of the property sale price, the buyer need to have a comfortable cushion of around 5-7 percent cash reserve in his/her savings to handle these associated costs of buying a home.
So, for instance, if you buy a property of Dh 1 Million with 75 percent loan to value, then you need to have a cash reserve of approximately Dh 330,000 to meet the down payment and additional buying cost. For the same amount the calculation would go in this way transfer fee 4 percent of the property value to Land Department, 2 percent of the property value as real estate broker fee, Market Valuation Fee varies from lender to lender Dh 2500- Dh 3000, bank processing fee 1 percent of the property value, mortgage registration fee 0.25 percent of the loan amount, Title Deed charges, transfer charges to the Land Department and the NOC charges to the developer.

 

So, let our certified consultant help you to plan your investment in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on TwitterFacebook, and LinkedIn and keep yourself updated with more home buying tips.

 

 

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