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Role of mortgage brokers in the UAE home buying process

Discover how a mortgage broker can help you throughout all stages of the home-buying process in the UAE.

As popular as the Dubai real estate market is at the moment, it’s still on the rise and it’s become more important than ever to familiarize yourself with the financing options available to you. Besides paying for a property in cash or choosing the post-handover payment option for an off-plan property, the most popular and economic option is to finance your purchase with a mortgage. Whether you are purchasing a new home or investing in a rental property, leaving some money aside for other expenses and investments is always a sound financial decision, and taking out a mortgage loan can afford you this luxury. Getting a mortgage is no simple task and with so many available options from various sources on the market, it can be very time-consuming and complicated to find the right one for your situation. This article will cover some of the advantages of using a mortgage broker to do most of the research and fieldwork for you.

Role of mortgage brokers in the UAE

You can refer to our blog to learn about the general steps in the UAE home buying process, but in this section, we will focus on the role a mortgage broker plays in this process in the UAE. A good mortgage broker can take you through the entire process, start-to-finish, and advise you on what to expect from the market so you can make an informed decision and start the process prepared. We can look at this in generalized steps along the way toward your homeownership.

Step 1 - Research: Examine the current market conditions, analyze available options, and predict the best course of action

  • Although you can do your own basic research online, the information you can find is very limited and mostly outdated

  • Brokers have direct access to developers and lenders so you get the most up-to-date information:

    • Property availability and details

    • Loan conditions and latest rates

    • Market fluctuation predictions

Step 2 - Pre-approval: Get pre-approval from a lender before you start your property search

  • To get a pre-approval on your own, you would need to visit a lender and supply your financial details and documentation

  • Brokers can do this for you from multiple lenders and find you the best option available

    • Available budget to focus on the properties in your price range

    • Pre-approval shows lender’s support and gives the seller assurance

    • Required by some sellers/developers before signing a contract

Step 3 - Property search: Find the right property to fit your needs and budget

  • Doing this on your own is very complicated unless you are very familiar with real estate rules and regulations

  • Brokers are up-to-date with the current real estate regulations and will look out for your best interest

    • Complete the purchase contract with your interest in mind

    • Compliant with regulations

    • Fair conditions for both parties

    • Can be authorized with a Power of Attorney (PoA) to act in your stead

Step 4 - Purchase contract: Compose and sign a purchase contract with the seller/developer

  • You can browse listing sites and spend days registering on various websites just to find the right property

  • Brokers often have a direct relationship with a realtor or offer in-house real estate services (like Kredium)

    • Direct connection to the seller or developer

    • Large collection of properties in one place

    • One registration gets you access to all listings

Step 5 - Mortgage application: Apply for a mortgage loan at a specific lender/bank

  • Finding the best mortgage offer requires you to personally apply at multiple financial institutions and costs time and money

  • Brokers can reach many lenders with a single application and find the best option for you

    • Multiple offers from various lenders

    • Single online application

    • Faster and more cost-effective

    • Application process guidance

    • Focus on the buyer’s best interest

Step 6 - Documentation: Submit required documentation to the lender/bank as well as the DLD/trustee office

  • Certain documentation may require you to personally deliver them to the appropriate authorities

  • Brokers with a PoA can deliver documents in your stead and accept them as well

    • Represent the buyer when required

    • Documentation delivered on time

    • Physical stand-in at the DLD/trustee office

Step 7 - Closing: Sign the closing contract with the lender and register the purchase at the DLD/trustee office

  • These need to be done in person unless you have  given someone a Power of Attorney

  • Brokers with a PoA can sign documents for you if needed and register the purchase with the government

    • Sign documents for you

    • Register the purchase contract at the DLD

    • Register the mortgage loan at the DLD

    • Represent you at the property handover

These are the roles and responsibilities of mortgage brokers during a typical home-buying process in the UAE. Beyond these benefits of working with a broker the following section lists some other advantages over going directly to a lender or a bank.

Mortgage broker vs lender/bank

If you go directly to a lender or a bank you are limited only to those that you visit yourself and each of them will primarily focus on their own interests of retaining your business. Brokers have a relationship with multiple banks and lenders and don’t work for any of them, so they offer independent objective advice. Mortgage brokers work for the borrower/buyer instead and look out for their interests by finding the best offers from multiple sources and advising the client along the way. It may be beneficial to go directly to a lender that you’ve had a long and successful relationship with and wish to do business exclusively with them. However, the best mortgage broker companies in the UAE are both Fintech (financial) and Proptech (real estate) companies at the same time, which means that they offer the services of both real estate agents and mortgage brokers to their clients.

A woman applying for a mortgage from her home with the help of a mortgage broker.
Mortgage brokers are the most trusted loan advisors in the industry and invaluable sources of current market information (such as interest rates and conditions). Brokers can leverage their multiple connections in the industry in order to help their clients. They provide dedicated customer service to their clients as most lenders lack this aspect in their interaction with the borrower. Brokers specialize in providing guidance and assistance to their clients throughout the home-buying process. Especially if issues come up where lenders and banks won’t be of much help, brokers are the ones who will work closely with the client in order to fix them.

Going forward

Now that you know the benefits you get when working with a mortgage broker, you can hopefully make a decision that best suits your needs. If you are considering buying a property in Dubai we have standing relationships with all the major developers so feel free to visit our search portal of over 5000 properties currently available for sale. If you have a property but need a mortgage visit our pages dedicated to UAE nationals, expats, or non-residents to learn more, register on our website, and apply for a loan online.

If you have any questions or need advice contact one of our local experts. For more information on various topics about the mortgage process, real estate developers as well as additional costs and fees required by the government, please visit our expanding blog section. You can also use our mortgage calculator to plan your monthly installments and estimate the projected rental profit of your future investment.

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