- Select and appropriate Apartment to buy as the recession is officially over (has been over for sometime now and I am late to seize the opportunity) in Dubai and rentals and property prices are rising in Dubai and Sharjah.
- Assess, evaluate and select the most appropriate mortgage provider. (I am not a cash buyer sadly)
- Get tasks 1 & 2 executed in coordination together.
I already have a pre-approval from my preferred bank. SCB has quite possibly the lowest margin + floating rate mortgages in the market and is very transparent about pricing and charges. You can also pre-settle / partial pre-settle the mortgage without paying any penalties.
The biggest is limitation with them is that they only finance a limited number of properties and developments in Dubai.
So, I need to have an alternate provider who will finance anything completed with a title deed. Any suggestions a welcome. I intend to list the various providers and their current offers as I get those details.
Most important I guess is the interest rate charge along with their pre-settlement and close out terms.
SCB : Rate SCBMR + 2 % (1yr Cost of funds + margin) or 3.60-70 %, the cheapest I have come across, with no partial settlement/ early settlement charge.
HSBC : Rate 3 Month Eibor + 3.19% (margin + liquidity premium) or 4.49 % (cost of funds + 3.19%) hence HSBC dubai's internal cost of funds is 1.3 % for 3 months. Loan closure fees AED 2500. No partial settlement charges but if settlement closes out loan then Loan closure fees apply.
Ajman Bank : 1st year teaser rate of 3% salary transfer / 4% non salary transfer, goes to 5.5% after the first year. didn't consider them as they were not as good as HSBC.
