Mortgage (Residential)

A residential mortgage is a secured loan for purchasing or refinancing owner-occupied or investment residential property, with the property serving as collateral and featuring terms, rates, and requirements distinct from commercial financing.

Mortgage ComponentsElements
PrincipalBorrowed amount
InterestCost of borrowing
TermRepayment duration
SecurityProperty collateral
RegistrationDLD recorded lien
UAE Residential StandardsTypical Terms
Maximum LTV75-80%
Interest rates4.5-7%
Loan term15-25 years
Maximum age at maturity65-70 years
Processing time2-4 weeks
Monthly Cost ComponentsBreakdown
Principal and interestLoan payment
Property insuranceLender-required coverage
Life insuranceTerm life for loan amount
Service chargesBuilding maintenance
Municipality fees5% of annual rental value


Related Terms

Loan-to-Value (LTV)Interest RateAmortizationLoan AmortizationAmortization SchedulePre-Approval (Mortgage)Pre-ApprovalMortgage TermDown PaymentCollateral

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