Frequently asked questions
You might have a few questions for us. Here’s a run down of some of the most common questions we get. If your question is not answered here, don’t worry. When you make an application, you will be assigned a Alpha Mortgage expert to answer any questions you may have.
It’s a letter issued by the bank after reviewing your loan application, and approving your requested amount in principal and conditional on a valuation being undertaken on the property you wish to buy. This pre-approval is valid, in most cases, for 60 days, thus offering you the confidence that you will get your loan on time once you decide which property you are buying and all further checks by the lender are complete.
Banks may offer a slightly preferential rate if you commit your salary transfer to them. Some rates are conditional on you transferring your salary to them, but not all.
Yes, there is a bank valuation and a bank processing fee. The bank valuation fee ranges from AED 2000–3000, with an additional 0-1% bank processing fee. There are also other fees involved in the purchase process including fees payable to your real estate agent, fees payable to the Dubai Land Department or Abu Dhabi Municipality, and mortgage registration fees. When you apply for a mortgage through Alpha Mortgage, your assigned mortgage expert will break down the fees for you. You may also be able to borrow a percentage of your fees as part of your mortgage.
A fixed rate means the rate of interest on the mortgage you pay typically stays the same for a specific period of time, between 1-5 years. Once the fixed period ends, you are then moved to a variable rate. On the other hand, variable rates refer to the interest rate that you have to pay linking to one, three, or six-month EIBOR, with a percentage fixed by the bank. This means the interest rate can vary from time to time, depending on the EIBOR. Sounds confusing? Why not get in touch with Alpha Mortgage for the easiest mortgage process in the UAE.
That depends on the bank. Most banks do allow the option of incorporating a percentage of the associated fees involved in the purchase cost into the mortgage. This helps save the upfront costs significantly.
Yes, you can. With most banks, you just need to let them know that you’re leaving. You and the bank will then decide on how the mortgage will operate moving forward. You should always inform your lender in the name of transparency.
Mortgage rates change in line with Central Bank interest rates and new rates are frequently brought to market. If you want to know the latest rates and best products for you, why not let one of our mortgage experts help you.
When you start to view properties, the first question a Real Estate agent will ask you is ‘do you have your mortgage pre-approved? If your answer is yes, this shows that you're a serious buyer and Real Estate Agents and sellers are more likely to take your offer seriously.