Here are government schemes for buying a property in Dubai -
Home Mortgage
The government of UAE is up with many home loan, mortgage, and facility schemes due to COVID-19. Different mortgage schemes exist for other people and situations in Dubai for property. One can fit themselves into the specific criteria under which schemes fall for their property.
There are government schemes for properties in Dubai for people of different cultures and parts of the world. For Muslims, there are numerous schemes, and for outsiders too, there are schemes available. To take a mortgage in Dubai, your salary should cover the monthly payment of the instalment, and only you are eligible for such schemes.
For most mortgage schemes, you must pay at least a 25% down payment of the total price of the house you have bought; this will ease your financing process. This is the home finance system of Dubai; if you fall under a special category, then you may get some extra perks, too.
Scheme For UAE Citizens
UAE adores its citizens a lot, which is why they have good schemes for their citizens. If your property costs less than 5 million AED, then the government and banks in Dubai can provide you loans for 80% of the property's total price; the remaining 20% shall be paid as the down payment first.
If your property costs more than 5 million, then the government and banks will not provide 80% of the loan; instead, they will pay only 70% of the total amount of the house. Here, you can pay the remaining 30% as a down payment or arrange that sum of money through personal finance.
People who will buy their second home in Dubai do not expect more than 65% of the loan amount from the banks because the limit is 65%, but you will get around 50-60% by most. People owning multiple properties of more than two are not eligible for government loans.
Scheme For Foreigners
We talked about citizens, but what about foreigners trying to settle in Dubai? For them, the government has excellent schemes. Through these schemes, foreigners get more advantages than citizens.
If your property costs less than 5 million AED, the government and banks in Dubai can provide you loans for 75% of the property's total price; the remaining 20% shall be paid as the down payment first. If your property costs more than 5 million, then the government and banks will not provide 80% of the loan; instead, they will pay only 65% of the total amount of the house. Here, you can pay the remaining 30% as a down payment.
People who will buy their second home in Dubai do not expect more than 60% of the loan amount from the banks because the limit is 65%, but you will get around 40-50% by most. However, foreigners with good income sources have more chances of getting a loan.
Off-Plan Schemes
Off-plan properties are the properties that are purchased by the customer even before the construction has started. These properties are mostly less expensive because a ready property has yet to be prepared. However, the government has a loan scheme for off-plan properties, but less than most properties.
You will get 50% of the total property price in these schemes, which applies to both country residents and outsiders. The remaining amount should be paid according to the developer or builder's concern.
This is applicable only if you get loan tenure at or below 25 years, and the reimbursement time for citizens before retiring is 75 years for both self-employed and working citizens. For foreigners, the age of reimbursement of the total amount is 65 years. These options are mostly not considered because loan tenure automatically decreases because 50% of the amount shall be paid as the down payment.
Ten-Year and Less Residential Visa Schemes
A year Visa is also called a golden visa in UAE. To get a golden Visa, the person should invest over 10 million AED in public sectors or businesses. Secondly, the property they buy should be 1 million AED or more; if not, there should be three properties that sum up the value of 1 million AED.
Most importantly, the investment made of 10 million AED should not be a loan from any bank of UAE or associated banks. People who are in the field of science and technology can get a golden visa. A five-year plan for a visa is applicable for making an investment in Dubai or UAE of more than 5 million AED. This invested amount shall not be taken by loan.
The property criteria are the same as a golden visa, but here, you cannot sell the property for three years, and you can allow your family and spouse with you to live here.
Retirement Visa
This Visa only applies to retired residents of Dubai. This scheme for buying property in Dubai helps foreigners and residents live peacefully in Dubai even after retirement. Such schemes are not observed in any other countries except the UAE.
The age should be more than 55 years old, and yes, you should be officially retired from a company or organization to fall under this category. You should purchase property worth over 2 million AED, have life savings of more than 1 million AED, and have an active income of 20,000 AED. This active income can be your pension, business profit, or the income of your children or spouse who is not retired.
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