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Helps DH15K–20k salary earners buy DH1 million homes
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Affordable mortgage plans, property discounts, and flexible payments open doors for mid-income residents
For many Dubai residents earning between Dh15,000 and Dh20,000 per month, owning a home worth Dh1 million once seemed out of reach. But with the launch of the First-Time Homeownership Initiative, that dream is now within grasp. Backed by 13 developers and 5 major banks, the program offers discounted prices, reduced mortgage rates, and flexible repayment terms to help mid-income first-time buyers enter the property market, reported timesofindia.indiatimes.com.
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The initiative covers homes priced up to Dh5 million and provides a range of benefits including priority access to new off-plan properties, up to 10% direct discounts on property prices, and the option to pay Dubai Land Department (DLD) fees in interest-free instalments
For someone earning Dh18,000 a month, the recommended 30% mortgage-to-income rule means a maximum monthly payment of Dh5,400. At an interest rate of 3.5% over 18 years, this allows for a loan on a Dh1 million property (with a 10% price discount) to be repaid in monthly instalments of approximately Dh5,544.
Down Payment and Flexibility Key to Affordability
While buyers will still need to make a 20% down payment—Dh200,000 for a Dh1 million home—this can be managed through savings, employer assistance, or personal financing. Making the down payment also reduces the loan amount to Dh700,000, lowering monthly payments to about Dh4,314—well within budget for most mid-income households.
TIPS TO MAKE THE MOST OF THE INITIATIVE
- Stay Within Budget: Focus on properties around Dh1 million to maintain affordability
- Use Available Discounts: Apply the 10% discount where possible to reduce financing costs
- Spread Upfront Fees: Use interest-free DLD fee instalments
- Choose the Right Developer: Work with participating developers offering off-plan flexibility
- Get Pre-Approved: Approach partner banks for early loan approvals
Even with upfront costs, this initiative makes homeownership an achievable milestone for Dubai’s mid-income professionals.
