How to massively increase your borrowing capacity

For most homebuyers saving their deposit is the biggest hurdle to home ownership. Here is how you can stretch your deposit to buy a bigger and better home.

Most borrowers in the UAE are not aware that there are mortgages available that allow you to add most of the borrowing and purchase costs to your home loan. In practice this significantly increases your borrowing capacity.

Here is a case study to show the effect of adding purchase costs to your home loan

A client holds cash of AED 500k. Subject to them having a suitable income, a cash deposit of this size would allow them to purchase a property worth approximately AED 2.5m:

Purchase price AED 2,500,000
Down payment needed 20% AED 500,000
DLD fee 4% AED 100,000
Agent fee* 2% AED 52,000
DLD fees (Miscellaneous) AED 9,568
Valuation fee (approx.)* AED 3,150
Total Cash Required   AED 666,020

*including 5% VAT

Calculate your mortgage

Use our mortgage calculator to work out how much adding purchase costs to your mortgage could increase your budget by.

By adding 4.8% of the fees into the mortgage, the out-of-pocket purchase costs would be reduced massively. That saved money can be used to increase the size of your 20% deposit thereby increasing your budget for your dream home to AED3.1m. An increase of AED600k.

Purchase price AED 3,100,000
Down payment 20% AED 620,000
DLD fee 0.8% AED 24,800
Agent fee* 0.4% AED 15,500
DLD fees (Miscellaneous) AED 10,370
Valuation fee (approx.)* AED 3,150
Total   AED 673,820

Where in the first scenario the maximum purchase price is AED 2.5m, by adding the fees of 4.8%, this increases to an incredible AED 3.1m, an uplift of 24%! This clearly has massive benefits, allowing you to buy a bigger property, or in buy in a better location.