Building Your Dream Home: A Guide to Financial Plan for a House in the UAE

Owning a home in the UAE is a cherished dream for many. But amidst the excitement, the financial aspect can feel daunting. Fear not, aspiring homeowners! With smart planning and the right tools, you can transform your dream into a reality. Here’s your roadmap to navigate the financial planning process for your UAE homeownership journey:

Assess Your Current Standing:  

• Income & Expenses: Calculate your monthly income and expenses to understand your disposable income. This forms the foundation for your affordability assessment.
• Savings & Debt: Evaluate your existing savings and any outstanding debts. Remember, debt repayments impact your borrowing capacity
• Credit Score: Your credit score reflects your financial health. Aim for a good score to access better loan options with lower interest rates.

Define Your Goal:

• Property Type & Location: Decide on the type of property (apartment, villa) and ideal location based on your lifestyle and budget. Research prevailing market prices in your chosen area.
• Down Payment: Aim for a minimum 20% down payment. With Sav’s “Round Up” and “Set & Forget” features, saving consistently becomes effortless.
• Loan Tenure: Consider the loan repayment period that aligns with your financial comfort. Longer tenures mean lower monthly payments but higher overall interest costs.

Explore Financing Options:

• Mortgage Providers: Compare mortgage rates and terms offered by different banks and lenders. Shop around to find the best deal.
• Eligibility Criteria: Each lender has specific eligibility criteria, so assess your income, employment status, and credit score beforehand
• Pre-approval: Obtaining a pre-approval certificate gives you a realistic idea of your borrowing capacity and strengthens your negotiation position.

Budgeting & Saving Strategies:

• Create a Budget: Allocate your income towards essential expenses, savings goals, and potential loan repayments. This ensures financial balance.
• Utilize Sav’s Features: Leverage Sav’s “Salary Sorter” and “Round Up” features to automate savings and maximize your efforts.
• Reduce Unnecessary Spending: Embrace sustainable spending. Track your expenses and identify areas where you can cut back. Every dirham saved brings you closer to your goal.

Embrace Smart Saving:

• Savvy Spending: Use your Sav card for daily purchases. The “Round Up” & other Sav card features effortlessly contribute to your savings.
• Reward Yourself: Sav’s “Earn” feature incentivizes saving with Sav Coins. Redeem them for rewards like free movies and e-commerce discounts, keeping you motivated. You can also use coupons while shopping online.
• Take Advantage of Offers: Utilize promotions like Sav’s “Noon Gift Voucher” and “DEWA/SEWA/ADDC Bill Cashback” to save even more.

Remember: Financial planning is a journey, not a destination. Be patient, consistent, and adapt your strategies as needed. With discipline and the right tools like Sav, you’ll be well on your way to unlocking the doors to your dream home in the UAE.

Beyond this guide, remember:

• Seek Professional Advice: Consulting a financial advisor can provide personalized guidance based on your unique circumstances
• Stay Informed: Keep yourself updated about market trends and regulations to make informed decisions.
• Celebrate Milestones: Acknowledge your progress along the way. Every dirham saved brings you closer to your goal.

With Sav as your financial companion and a well-defined plan, building your dream home in the UAE becomes a realistic and achievable goal. Start your journey today!