Ten questions you need to ask your mortgage advisor

Buying a property, of course, goes hand in hand with mortgage finding, but before you add your signature to your home application forms, make sure to ask your mortgage advisor the following 10 important questions. • Did you do a review of the entire market? Are there any better deals available? • Why is this bank charging an upfront fee of one per cent? • Are there any hidden costs? • Why is this bank insisting on a salary transfer? • What are the negative points of having a mortgage that requires a salary transfer? • Can I choose my own life insurance provider? • What happens if I want to break the loan? • What happens if I want to leave the UAE? • What happens once the fixed period expires? • Can I make additional payments? Is there a limit or are there any fees involved?

Compare the market

Remember that the mortgage with the lowest advertised interest rate could end up being the most expensive. In more mature mortgage markets such as in Australia and the UK, advertising regulations stipulate that banks and mortgage providers must quote both the annual interest plus an annual comparison rate that takes into account all establishment fees, break fees, initial and ongoing interest rates and charges over the course of the loan so consumers can compare the real total cost. The UAE does not yet have such regulations but at the least make sure your mortgage advisor outlines two to three options suitable for you that clearly outline the following: • interest rate • application fees • establishment fees • valuation fees • revision rate • extra payment fees • break fees if you want to sell • break fees if you want to refinance with another bank • life insurance costs