Taking out a mortgage is a pretty big deal. Probably the biggest financial loan you’ll take out in your lifetime. And here’s the thing...it’s not so easy to find the best mortgage that matches your specific circumstances and needs. With hundreds of different mortgage products out there, it’s easy to get tired of the never-ending Google searches as you look for the right mortgage for you.
That’s where mortgage brokers come in. Brokers are qualified professionals who know the mortgage industry and all the complexities that come with it inside-out. But what questions should you be asking them? Here are six of the biggest questions you should be prepped with before calling or meeting with your mortgage broker…
Why should I go to a mortgage broker instead of a bank?
While going directly to a lender certainly has its advantages, a good mortgage broker will have good relationships with, and excellent knowledge of, a large number of lenders. The benefit of this is that you’ll get a broader understanding of the kinds of deals that might work for you, instead of being limited to multiple products of just one lender.
How many lenders do you work with?
As mentioned above, a good mortgage broker should have an excellent relationship with a range of lenders. This translates to more options for you! As they’ll have more scope to find the best deals with the lowest interest rates to suit your specific needs and circumstances.
How will you help me decide which mortgage is best for me?
This is an important one. By asking this, you’ll be able to gauge whether a broker prioritises your interest above their commission. Your broker should be able to walk you through each mortgage option in detail, explaining the various features, and why they think it will be best for your personal circumstances.
How much will you charge?
Fees when buying a property in the UAE can add up to 7% of the total value of the purchase price, and this isn’t taking into account mortgage broker fees. So it’s important to ask how much they charge. Traditional mortgage brokers typically charge AED 5,000 + VAT, or up to 0.5% of the property value. However online mortgage brokers like Huspy are 100% free. We don’t charge any hidden fees or extra costs.
What documents do I need?
This is another big one. Because a mortgage loan is so big - and therefore a huge risk to lenders - banks want to see as much proof as possible that you are a reliable, financially responsible borrower who will be able to pay back their loan without any issues. That proof comes in the form of paperwork. Lots of it. So make sure to ask them to send over a full list of all the documents you’ll need, which for UAE residents will include things like your Emirates ID, passport, proof of address, a salary certificate, and more.
Psst...with Huspy, we make this easy for you. Our online portal means you can keep track of every document you need to in one place. Oh, and we’ll check everything for you before sending them over to the bank. What more could you ask for!
What are the best interest rates available
Interest rates are a percentage fee of your total loan amount that banks charge for their loan. You’ll have to repay this amount monthly on top of your capital payments. So ideally you’ll want to find the lowest interest rates so you’re not having to pay more to the bank than necessary.
Your mortgage broker will be able to give you a range of options with the lowest interest rates. Also make sure to ask about the long-term interest rates, as fixed interest rates expire after a few years, and may default to a higher interest rate.