Add Mortgage Calculator here. 

An online mortgage calculator is a valuable tool for potential property buyers who want a rough estimate of their monthly payments when borrowing a certain amount. It allows you to explore different scenarios by simply adjusting the loan amount, interest rate, and term length. This can help you assess whether a particular property fits within your budget and provides the information you need to plan your investment wisely.

How to Use Bloom’s Online Mortgage Calculator

1. Enter the property value (price of the home).
2. Choose your loan amount or down payment.
3. Select the interest rate (you can use an estimated rate or a rate provided by your bank).
4. Enter the loan tenure (number of years you want to take the loan for).
5. Click "Calculate" to see your estimated monthly payments.

The calculator will give you an idea of your monthly repayment amount. If you would like to explore different scenarios, simply change the values and hit “Calculate” again.

Mortgage calculators help home buyers and property investors plan their finances better by offering three key insights:

1. A Clear Budget

Understanding your estimated monthly repayments can help you decide how much you can afford to invest in your dream property without stretching your finances too thin and putting yourself at risk. 

Monthly repayments are typically the largest expense for homeowners, so understanding them ensures you can budget effectively for other costs like utilities, maintenance, and everyday expenses.

2. Ideal Loan Options

It gives you the opportunity to easily compare and evaluate different loan offers (e.g., varying interest rates or loan terms). This information can help you decide the most affordable and suitable loan option that aligns with your financial plans or goals.

The length of the loan (e.g., 15 years vs. 30 years) can significantly impact your monthly payments. A shorter term means higher monthly payments but less interest paid over time, while a longer term lowers monthly payments but costs more in the long run due to interest.

3. How to Plan for the Future

Knowing what your payments will be in advance can help you budget for your future and set aside funds for your monthly mortgage payments, additional investments, living expenses, holidays, and other life events. 

Interest rates play a major role in the overall cost of your mortgage. A small difference in the rate can lead to big differences in the total repayment amount. For example, even a 0.5% difference in the interest rate could add up to thousands of dirhams over the life of the loan.

1. Overestimating Your Budget

When you use a mortgage calculator, you're usually only seeing the principal and interest portion of the mortgage. It’s easy to get carried away when you see an estimate that feels comfortable, but there’s more to your home purchase than just the loan repayment. Homeownership comes with plenty of additional costs, that includes:

• Utilities: Electricity, water, and cooling can add up quickly, especially in larger homes. Summers in the UAE can be quite harsh, and the energy bills reflect that.
• Initial Fees: These can vary depending on where you live in the UAE. Be prepared to spend on land department fees (4% of property value), registration fees, agent commission (2% of property value), and mortgage fees, among other things.
• Annual Service Charge: If you’re buying property in a community, you will be required to pay an annual service charge or maintenance fee for the upkeep of common areas and amenities. This is usually calculated per square foot, and the rate varies depending on the location and how exclusive your property is. 

When using a home mortgage calculator in the UAE, it is important to factor these additional costs in to get a more accurate estimate of what your budget is and equip yourself with the information you need for realistic financial planning. 

2. Not Considering Loan Terms and Conditions

Make sure you're paying attention to the loan terms and conditions when using a mortgage calculator. These can dramatically affect your monthly payments and overall financial picture. Two things to watch out for are:

• Interest Rates: Even small fluctuations in the interest rate can have a big impact on the total amount you’ll pay over the life of the loan. For instance, a higher rate means more money spent on interest, making your monthly payments higher.
• Loan-to-Value (LTV) Ratio: This is the ratio of your loan amount to the appraised value of the property. A higher LTV ratio (i.e., borrowing more compared to the value of the home) usually means higher interest rates, and you may be required to pay for Private Mortgage Insurance (PMI), which adds extra costs.

It’s important to be aware of these terms when using a mortgage calculator to get a more accurate and realistic estimate of what your actual repayments will be.

3. Miscalculating Payment Frequencies

Mortgage calculators often default to monthly payments, but different payment schedules can affect your overall budget:

• Monthly Payments: This is the most common and standard option, where payments are made once per month.
• Quarterly or Annual Payments: Some lenders might offer options for quarterly or annual payments, and this can affect how much you pay at once. If you choose one of these options, your monthly cash flow might look different from what you're used to.

Be sure to understand the frequency of your payments when using an online mortgage calculator, as choosing a different payment frequency could impact your monthly or yearly budget.

Whether you're a UAE national, an expat, or a non-resident, there are specific eligibility criteria that determine whether or not you can secure a loan. Lenders assess several factors to ensure that you can comfortably repay the loan, which differs depending on which buyer category you belong to. Here are some essential things to know: 

For UAE Nationals

To qualify for a mortgage as a UAE national, you must meet the following criteria:

• Proof of Nationality: You need to present a valid UAE passport and Emirates ID that proves your nationality.
• Age: You must be at least 21 years of age to apply. As of 2019, there is no mandatory age limit, however, most banks still follow the previous conditions set by the UAE Central Bank, and require loan payments to be completed by 65 years of age for salaried individuals, and 70 years of age for self-employed.
• Income: A minimum monthly income of AED 10,000 is required.
• Employment: You must have stable employment with a reliable company. If self-employed, you need to submit proof of stable income and business track record for at least two years.
• Proof of Employment: You’ll need to provide bank statements and salary certificates that confirm your employment status.
• Credit History: A good credit history is essential to show financial responsibility.
• Down Payment: Typically, a 20% down payment of the property’s value is required.

For Expats

To qualify for a mortgage in the UAE as an expat, you generally need to meet the following criteria:

• UAE Residency: You must be a resident of the UAE and provide documents to prove this.
• Age: Applicants are required to be at least 21 years old to apply. Most mortgage lenders usually also require the loan to be fully repaid by the time you are 65 years old if you are a salaried employee, or 70 years old if self-employed. However, since 2019, the upper age limit is no longer enforced by the UAE Central Bank and is left open to lenders to decide.
• Employment: Salaried employees must have been employed at their current company for at least 6 months. Self-employed business owners must have a clean credit history. Documentation to support the same will be required.
• Income: A minimum monthly income of AED 15,000 is generally required.
• Credit History: A good credit score (typically 650 or higher) is essential.
• Down Payment: Expect to pay a 20% down payment of the property’s value.

Different banks may have their own terms, so it's worth comparing lenders before you commit to a mortgage plan or provider. 

For Non-Residents

If you are a non-resident looking to buy property in the UAE, here’s what you need to know about securing a mortgage:

• Citizenship: Some banks may require you to be from a country that is on their approved list for non-resident home loans.
• Employment: You must be either a salaried employee or self-employed to apply and be able to submit proof of income.
• Age: Banks typically have age restrictions that include a minimum and maximum age to apply. Be sure to check whether you qualify with your bank.
• Income: You need to meet the bank’s minimum monthly income requirement, which may differ. Most lenders only accept applicants who have a monthly income of at least 15,000 - 20,000 AED after tax deductions.
• Property Approval: Some banks only finance properties from approved developers or projects, so ensure your property qualifies before applying.

• Documentation: Valid passport for ID proof, bank statements for the last 3-6 months showing proof of funds, tax returns (if applicable), salary certificates or payslips (if you're salaried), trade license and audited financial statements (if you're self-employed), and details of any existing loans among others. 

With Bloom Holding, you have the choice of investing in some of the UAE’s most coveted addresses. As an award-winning developer, our projects are thoughtfully designed to provide unique living experiences that combine convenience, luxury, and comfort. Our community-focused developments enable a truly enriching experience with an abundance of natural beauty, scenic walkways, and state-of-the-art amenities designed to keep you active and engaged.

For more information on how to secure a mortgage for your favorite Bloom property, contact our support team.