With increasing demand for home loans in Saudi, buyers need to be aware of specific terms in order to make a well-informed investment decision. To make things easier, we’ve explained a few keywords that you will come across when looking to take out a mortgage:
A mortgage pre-approval is an essential first step when buying a house. The process is an evaluation to check if you, as the borrower, qualify for a loan.
Mortgage providers commonly check a borrower’s debt-to-burden-ratio (DBR). Your DBR is calculated as the percentage of your total income,
Lenders will commonly quote borrowers a flat or reducing rate. It is vital you understand the difference before applying. A flat rate is calculated on the principal amount with equal installments payable across the loan duration. On the other hand, a reducing rate interest is charged on the outstanding balance.
The DAMAC Properties mortgage department is available to provide assistance to customers, allowing them to make a well-informed investment decision.