Dubai Real Estate: Mortgage for Off Plan property (Finance)

– Hi, guys! My name is Denis and I’m a real estate agent in Dubai. – I received quite a few questions regarding the mortgage for Off Plan property. – And in this video I’ll try to give you some information about it and I’ll try to make it short and useful for you. – As per regulations from the Central Bank the banks here can give you only a 50% of the value as a loan towards the Off Plan property. – And as usually this value is based on the original price. – The price that is mentioned in the SPA. – Even if the market price is higher. – The bank can give you this loan for 25 years. – And as usually the Interest rate is somewhere between 3,5-4,5%. – Unfortunately, non-residence will not be able to apply for the mortgage for the Off Plan property over here. – They can apply only for the ready property. – It’s much easier to get a loan for the project from a big developer and well-known developer. – It’s something that you need to keep in mind. – In the end I want to tell you that once the property is ready and you receive the title deed, you can apply for the 75% loan. – And this 75% loan will be based on the market price, not the original price. – So just as an example, let’s take Mira. – The original price there was somewhere around 1,1 mln AED. – And during the construction you can get 50% based on this price. – Right now the price for the Mira, it’s about to be handed-over is around 1,9-2 mln AED. – So right now, once you received the title deed you can get 75% based of 1,9-2 mln AED and take all your money back. – You will still have the property, all your money will be with you and you can put there the tenant. – The tenant will pay for your mortgage and again will get some gains. – And you can use this money to put somewhere in another project. – What is important, so many people think that it’s quite expensive to change one mortgage to another one… – but as per regulations from the Central Bank it will cost you maximum 10,000 AED. – So, with such a small amount of money you can get your money back and use it somewhere else. – Very useful tool and this is something that you need to consider. – On this, I will finish this video. – I hope it was useful for you. – And please leave a “like” and a comment under this video. – I hope to see you soon. – Thank you for watching. – We’ll stay in touch. Goodbye.

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