Mortgage recommendations
If you are a first time buyer and from Ek you stand a good chance.Most local bank do provide
Noor Islamic, emirates Islamic, Mashreq , Abu dhabi Islamic bank, standard chartered bank . All generally provide upo 15 % deposit schemes.
Also other banks will follow suit. Although Tamweel is quite a big player . Beware they are not overseen by the central bank and can vary the profit rates as their please. The banks on the other hand are governed by the central bank.
When looking for a home mortgage ,ask what are the processing fees. Some may charge 1% if the mortgage amount, and some no mortgage fees . Some offer Ek a discount
Check the penalties for early cancellation of your mortgage . Some are as high as 4% and some offer 0 %
Do you need to move your salary the Bank ( some require it for the 15% deposit)
What is the cost of the life insurance coverage.
If the first year profit/ interest is mentioned . What will the following years profit be and what will the rate track. Some banks apply a internal bank rate + the profit rate e.g Eibor + 3.5 so if Eibor is 2% then the rate of profit /interest will be 5.5% . Some banks may offer a starter mortgage rate as 3.99% but revert to 6% the following year as a minimum. Some banks offer a 3 to 5 year fixed rate.,which is good to plan out your installments for the medium term
Other aspects you need to look at, are the projects that the Banks are willing to offer mortgages for. The other part of our question about the accomodation allowance Most banks will include your utility allowance towards your mortgage ,provided it is included in your salary certificate. The company does provide such certificate.
BM
Last edited by bigmountain; 10th Dec 2012 at 17:49.