Abu Dhabi Real Estate

What is meant by analyzing the ratio of the financial ability to get a loan (DBR) Debt Burden Ratio?

What is meant by the concept of analyzing the ratio of the financial ability to get a loan, i.e. is the financial ratio available in the client's sources of income, which allows the client to get a loan.

To illustrate this ratio, we will give a simple example:

A client whose total monthly sources of income amount to AED 50,000, and his financial obligations are distributed as follows:

A car loan with a monthly installment of 2500 dirhams.

Personal loan with a monthly installment of 2000 dirhams.

A credit card with a revolving credit limit of 50,000 dirhams (5% of the limit granted on the card is calculated as a monthly obligation on the client)

Based on the above, we notice that the total obligations of the client is = 2500 + 2000 + 2500 = 7000 dirhams.

The percentage of the total obligations is calculated from the total sources of income = (7000 / 50000) * 100% = 14%

The bank allows the client to be granted a mortgage that amounts to 50% of the total income along with his monthly obligations. Therefore, in the previous example, the client can get a loan with a monthly installment that amounts to 36% of his income sources, i.e. with a monthly installment of 18,000 dirhams.

In light of this, your mortgage advisor begins calculating the value of the loan that you can obtain, taking into account the client's age to calculate the years of the loan and the interest/profit rate.

Contact one of our consultants to calculate your financial ability to get a mortgage and calculate the amount of financing that you can obtain.

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Property Price

AED

Loan Period

Years

Downpayment

Interest Rate

%

Monthly Payment

AED
0
per month

Total Loan Amount
0 AED

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Amortization

Loan Amount

AED

Loan Interest Rate

%

Loan Term Years

yrs

EARLY PAYMENT

Effect of making a larger payment

Payment Amount

AED

Made after month

AED

Monthly Payment

AED
0
per month

Monthly Amortization
5,558 AED

Total Cost
0 AED

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Refinancing

Mortgage Information

Current loan balance

AED

Current monthly payments

AED

Early settlement fees

AED

Percentage

%

Current loan interest rate in %

%

Refinance Information

Current property value

AED

Current estimated

AED

Term of new loan

yrs

Fees to obtain new loan

AED

Percentage

%

Interest rate of the new loan in %

%

Monthly Payment

Mortgage Cost
0 AED

Monthly Pay
0 AED

Pay Diff
0 AED

Refinance Pay
0 AED

Break Month
0 month(s)

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Rent vs Buying

Currently monthly rent

AED

Expected loan amount

AED

Yearly rent increase in %

%

Loan term in years

Yrs

Loan interest rate in %

%

Expected property price

AED

Downpayment

AED

Percentage

%

Yearly property appreciation

%

Plan years to live

yrs

Monthly Payment

AED
0
per month

Total Rent Amount
0 AED

Total Buy Amount
0 AED

Mortgage Amount
0 AED per month

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House Affordability

Gross Monthly Income

AED

Extra Monthly Income

AED

Monthly Debt Repayment

AED

Downpayment

%
AED

Interest Rate

%

Payment Period (Year)

yrs

Can Afford

AED
0
per month

Total Afford
0 AED

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