The Mortgage Market � How it works!
Ever wondered where a bank gets your maximum mortgage amount from? Well here�s a little inside look at what they base their maths on.
When applying for a mortgage here in the UAE banks can offer you a mortgage of up to 7X your annual salary which can sound great. However, there are other hidden factors that can reduce this further.
Many people don�t realise that Central Bank (The Big Dog that makes the rules) have a regulation whereby you can only use 50% of your monthly salary towards debt repayment. So, if you have a personal loan, car loan and/or credit card then you can expect your mortgage amount to start reducing. So, an individual who has a salary of AED 50,000 a month could borrow a maximum of AED 4,200,000 but throw in a credit card with a limit of AED 100,000 and a car loan of AED 2,500 a month and you can expect this amount to drop to roughly AED 2,800,000.
As you can see small amounts here and there on loans can make a considerable difference on what property you can afford. Why not avoid the maths headache and approach one of our advisors today who will help you work out what you can borrow?
MENA Mortgage Services � Your Personal Advisors
Enquiries@mena-mortgage-services.com
Blog Written by: Robert Lee,
Business Development Manager
Mena Mortgage Services
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