# Home Finance (Mortgage) in Dubai



## Mdabag (Aug 27, 2015)

I'm taking a leap of faith and buying a house here in Dubai. Given some real estate nightmares I've been hearing about, I'm not sure how good of an idea that is but I'll take my chances!

Does anyone have any experience with mortgage lenders they wouldn't mind sharing? Is Islamic financing more beneficial than standard financing when it comes to home finance?

I did a little research and found that Abu Dhabi Islamic Bank (ADIB) and Emirates Islamic Bank (EIB) are considered pretty good. Anyone have any experience with them or any other banks?

Also, when taking variable interest rates into consideration, they all say EIBOR "+ profit margin". I'm Ok with EIBOR rates but how much is this "profit margin" usually set at? It seems like a way for banks to charge you whatever interest they like as anything on top of EIBOR can be justified as this "+ profit margin" we agreed to...?


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## Chocoholic (Oct 29, 2012)

I'm with EIB - I didn't have a choice as they were the preferred bank from the developer at the time I bought. The interest rates can be high - many of us are probably paying around 7%, but you can request that to be reviewed every quarter.

Just bear in mind all the 'additional' costs, like registration fees, land department fees, which are 4% of the purchase price.

Also bear in mind that for expats, they'll only give you a 75% mortgage. So you basically will need, for safety measure, around 30-35% of the purchase price, in cash to start with.


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## Mdabag (Aug 27, 2015)

Chocoholic said:


> I'm with EIB - I didn't have a choice as they were the preferred bank from the developer at the time I bought. The interest rates can be high - many of us are probably paying around 7%, but you can request that to be reviewed every quarter.
> 
> Just bear in mind all the 'additional' costs, like registration fees, land department fees, which are 4% of the purchase price.
> 
> Also bear in mind that for expats, they'll only give you a 75% mortgage. So you basically will need, for safety measure, around 30-35% of the purchase price, in cash to start with.


Thanks for your feedback. Very helpful.
I'm aware of all the "additional" costs. It's mainly the potential future surprises from the bank that leads me to worry..

When you say that EIB was the preferred bank from the developer at the time you bought, do you mean you were able to secure a loan for an off-plan property? Or was it ready property but the developer recommended EIB?


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## rsinner (Feb 3, 2009)

also compare the various loans on Souq Almal .com


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## Chocoholic (Oct 29, 2012)

Basically I bought off plan and the only two banks we could deal with for the mortgage were EIB or Dubai Bank at the time and Tamweel.


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## ode17366 (Nov 29, 2010)

Got my mortgage through Standard Charter been with them two years had no issues really.


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