Most homebuyers struggle in saving their initial deposit when buying a home. Did you know that you can increase your lending capacity to perhaps buy a bigger property or in buy in a better location ?
There are mortgage packages and products available that allow you to add up to 3% of the DLD fee and 1.5% of agent fees to the mortgage which reduces considerably your up front initial costs but more importantly increases your buying power by 18%.
Here is a working example of an available deposit of AED800K cash buying a property with a value of AED2.5M.
| Purchase price | AED 2,500,000 | |
| Down payment needed | 25% | AED 625,000 |
| DLD fee | 4% | AED 100,000 |
| Agent fee | 2% | AED 50,000 |
| DLD fees (Miscellaneous) | AED 9,568 | |
| Valuation fee (approx.) | AED 3,150 | |
| Total Cash Required | AED 787,718 |
However, with the same deposit available, if you add 4.5% of the fees to your mortgage you can increase your purchase price to AED 2.95M. This is shown in the below workings.
| Purchase price | AED 2,950,000 | |
| Down payment | 25% | AED 737,500 |
| DLD fee | 1% | AED 29,500 |
| Agent fee | 0.50% | AED 14,750 |
| DLD fees (Miscellaneous) | AED 9,568 | |
| Valuation fee (approx.) | AED 3,150 | |
| Total | AED 794,468 |
This has increased your buying power by 18% and reduced the need for cash for the outlay of those initial costs associated with buying. By increasing the budget of your dream home by AED450K would enable you to potentially stretch that bit further and really afford the house of your dreams.
If you want to know more about these mortgage products and how they can work for you - please call Exclusive Links and we will immediately pass you through to our Mortgage Partners.
Written by Zarah Evans, Managing Partner, Exclusive Links Real Estate
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