Dubai residents with DH15K-20k salary can now buy a DH1 million home with ‘First Home’ initiative world news
Earning between DH15,000 and DH20,000 per month for many Dubai residents, a house owner has been out of long access, especially with property prices often crossing DH1 million. However, for the first time Dubai’s new first homeowner initiative, which aims to make the homeowner accessible for buyers for the first time, provides support for prices up to DH5 million. Supported by 13 developers and 5 major banks, the program provides significant benefits, including priority access to new off-plun units, preferential pricing, and direct discounts of up to 10% on property prices. Additionally, the initiative provides flexible mortgage payment scheme with better rates from participating banks, making the homeowner more cheap. DLD registration fee can also be paid in interest-free installments, which can reduce the upfront financial burden. Therefore, if you are looking at that DH1 million home, then here it is reported that you can plan your strategy, estimate your costs, and take maximum advantage of these benefits to bring your dreams closer to reality. With this initiative, even medium-or-east-earners can turn the owner of a house into a viable possibility.
Step 1: Determine strength and choose the correct property
Suppose you are earning DH18,000 per month, keeping you comfortable within the target salary limit of the program. The objective of the first -time homeowner initiative is to make home people a reality for homes priced at DH1 million under the program. According to the common mortgage loan rule, banks usually recommend that no more than 30% of your monthly income should not move towards housing cost (including mortgage repayment and cost of allied property such as maintenance and insurance).Here’s how we calculate it:
- 30% of DH18,000 = DH5,400
This means that, ideally, your monthly mortgage payment should not exceed DH5,400.
Now, let’s consider the mortgage options available through this program. With the 18-year loan tenure on the proposal, the total amount you can borrow will depend on the interest rate, which is the lowest available to buyers for the first time under this initiative.Now, let’s see how home -onship initiative for the first time supports it.
Step 2: Horticulture Breaking and Strength
The program offers competitive interest rates, making home owners more accessible for residents earning DH15,000 per month. While the specific mortgage rates in Dubai range from 3.5% to 4.5%, this initiative supported by major banks and developers provides bottom-market financing options. A 3.5% interest rate is realistic and competitive, ensuring inexpensive monthly payments for buyers for the first time in the middle-income range.Assuming an interest rate of 3.5%, which is appropriate, given the support nature of the program, it is reported here how the number breaks for the DH1,000,000 homes:
- Loan amount: DH900,000 (after taking a full 10% discount for estimates on the basic property price of DH1,000,000).
- Interest Rate: 3.5% per year
- Loan tenure: 18 years
Using the standard mortgage calculation formula, the approximate monthly payment occurs around the DH5,544 (accurate), which is slightly above the 30% salary rule. With DH18,000 per month in salary, the monthly payment of DH5,544 is still manageable, first offers a solid financial base for buyers.
Step 3: Plan for advance cost and financing
While the program provides many benefits, it is important to take into account advance costs including down payment and closing costs. As specific in the property market of Dubai, you will generally need to make 20% down payment on the purchase price. If this requirement remains 20%, even with the benefits of the initiative, we have used this figure for a safe estimate. For DH1,000,000 assets, it means DH200,000 down payment.
- Initial Investment: DH200,000
- Recruitment property price: DH900,000 (after 10% discount)
- Loan amount: DH700,000
- Monthly original payment: DH5,544
If you are able to pay DH200,000 in advance, your loan amount will be reduced to DH700,000, which will reduce the monthly payment by about DH4,314 per month.Although down payment may seem standing, there are many ways to manage it:
- Savings: If you have been saving for some time, now is the time to use those funds to purchase your home.
- Employer Assistance: Some companies provide home loan assistance or participation with financial institutions that can help in down payment.
- Personal debt or support: If necessary, you can consider a personal debt to cover the share of the down payment, although it should be done carefully to avoid over-level.
Step 4: Maximize the benefits of the program and get expert support
For the first time to take maximum benefit of homeowner initiative, consider these tips:
- Choose the correct property: Stay within the DH1 million price range to keep your mortgage payment manageable (less than 30% of your salary).
- Leverage discounts: Use up to 10% discount on property prices. For example, if the price of a house is DH900,000, you will only finance DH810,000, reduce monthly payment.
- Use flexible payment plans: Opt for flexible payment schemes on off-plun units that give you share of cost and rest over time.
- DLD Fee Benefits: Take advantage of option to pay
Dubai land department (DLD) Registration fee in interest-free installments, reducing your advance costs. - Work with the right broker: partner with a licensed broker to find assets matching your budget and eligibility criteria.
- Get pre-infinite for financing: secure pre-eminent from a participating bank. To understand what you can tolerate and effective what you can tolerate the process of buying a house.
Disclaimer: The figures provided are rough estimates, to explain how the first homeowner’s initiative can make the owners of the house more accessible. Actual costs, discounts and mortgage words may vary depending on factors such as bank policies, property nuances and developer offers.
