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Tips for Expats Looking to Get Mortgage in Ajman

Ajman holds a special place for those seeking a remarkable lifestyle and work opportunities, attracting a large expatriate community of over three hundred thousand people. Many foreigners flock to this thriving city, driven by the desire to earn and save money swiftly before moving on to new horizons or returning to their homeland. Initially, buying a home in Ajman may not be the foremost thought on your mind, as most expats find themselves staying much longer than anticipated, shelling out substantial sums in rent.

However, why not channel your hard-earned money into an asset of your own rather than lining someone else’s pockets? As you get used to the Ajman way of life, it becomes important to consider investing in property and securing a mortgage here, be it for personal use or the prospect of earning extra income through renting. Purchasing real estate in Ajman can be a pivotal step toward securing your financial future.

For first-time home buyers, this prospect can seem daunting. And indeed, it presents challenges. Nevertheless, with the right guidance, it is entirely feasible to navigate this path successfully.

Consider Your Source of Income before Applying for the Mortgage

Ensuring your ability to repay the borrowed money is of utmost importance to the bank, as they seek reassurance and financial stability. A consistent and reliable income serves as a strong guarantee in their eyes. For many expatriates, their work in Ajman comes in the form of employment at a company, which not only provides them with a paycheck but also secures their visa.

To be eligible for a mortgage, you typically need to have a monthly salary of at least AED 10,000. Additionally, most banks mandate a minimum of six months of continuous employment at your current job. However, depending on the nature of your employment, some banks may initiate mortgage processing after just one salary credit.

Documentation Required for Mortgage in Ajman

The documentation required for mortgage varies significantly depending on whether you are a salaried employee or self-employed. However, as is often the case in the UAE, certain essential documents will take you a long way. These Include:

Identification documents: This includes your valid passport and UAE residency visa.

Emirates Identification: This is an important identification card issued by the UAE government that serves as proof of your identity.

Bank statements: It is crucial to provide bank statements from the past six months, which showcase your financial transactions and stability.

Company’s salary certificate: If you are an employee, obtaining a salary certificate from your company is essential. This certificate verifies your income and employment status.

Address confirmation: You will need to provide proof of your residential address, which can be established through documents such as Ejari, DEWA bill, or a phone bill in your name.

It’s worth noting that certain nationalities from globally sanctioned nations may encounter restrictions from specific banks. However, as a UAE resident, as long as you meet the standard requirements and criteria, you should be able to secure a mortgage.

The Upfront Amount You Will Need to Pay for the Mortgage

When it comes to purchasing a property, it’s important to understand that you will need to make an upfront payment of around 20 to 30% of the property’s total value. This amount does not include additional expenses such as bank charges and other related costs. It’s essential to keep in mind that the bank will not provide a loan for the entire purchase price of the property.

You also need to consider various transaction costs. These include government expenses such as title deed and mortgage registration fees, as well as bank fees such as application fees, processing fees, and property assessment fees. Furthermore, there may be additional fees related to real estate agents or brokers. Altogether, these expenses can accumulate to approximately 6to 7% of the entire property value.

Final Thoughts

When it comes to obtaining a mortgage as a foreigner in the UAE, a little preparation and strategic thinking go a long way. Just like any investment, there are several important factors to consider before taking the leap, such as your budget and the realistic affordability of the properties you have in mind. However, rest assured that the effort is worthwhile, as a mortgage represents one of the most secure and reliable investment options available today.

By carefully assessing your financial situation, understanding the mortgage options available, and working with trusted advisors, you can navigate the path to homeownership successfully.

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