How to Finance Home Renovation in Dubai

Home renovation is an extensive and costly affair. It’s all about how well you use the resources that have been siphoned off for the purpose of renovation. If that is not the case, you’d probably feel that it’s a bottomless pit and no amount of effort is getting you closer to the actualization of your dream.

This is particularly true in places like Dubai. It is, therefore, important to know about all the possible ways to finance home renovations in Dubai.

Here are some of the best financing options for home renovations in Dubai:

Personal loans, due to their relatively quick approval rates and flexibility, are a popular option for home renovations in Dubai. Many banks and financial institutions in Dubai offer personal loans specifically tailored for home improvements.

They don’t need any collateral and have fixed interest rates. What doesn’t work in their favor is the higher interest rates compared to secure loans. The other pitfall is having shorter repayment terms.

There are banks that have specific loans designed for home renovation. These loans have favorable terms and interest rates because they are secured against your property. This mortgage method has lower interest rates compared to personal loans. Having the provision of longer repayment terms is another plus.

On the flip side, a mortgage needs more paperwork and has a long drawn approval process. Also, it requires a collateral ( your home). This can be a little intimidating for some.

Home equity loans are an option for those who own a home and have built up equity. The loan uses the equity in your home as collateral. This system brings down the interest rate. One can look for potentially large loan amounts with Home Equity Loans.

The con of this loan is that your home is used as collateral. You also run the risk of foreclosure if you default on payments.

Using a credit card is a convenient option for those who have smaller renovation projects on hand. Some credit cards run promotional offers with 0 % interest. This can be beneficial if you can pay off the balance within that period. A credit card is easy to use and gives you instant access to funds. No collateral is needed in the use of credit cards.

However, credit cards can lead to overspending if not managed properly. This can put you in debt. One has to consider paying back within the timeline of the promotional offers to avoid high- interest rates.

Some banks in Dubai have special financing programs to facilitate home renovation. These programs might offer preferential rates and terms for their existing customers.

Emirates NBD offers personal and home renovation loans with competitive rates. Mashreq Bank, for instance, gives personal loans tailored for home renovations with flexible repayment terms. Dubai Islamic Bank offers Sharia- compliant home renovation options.

If you have saved money and put it aside for future use such as for renovation, it is the most straightforward way to finance a home renovation. There is no hassle of interest payments and debt accumulation.

On the other hand, putting savings to use depletes funds that could have been used for other purposes. Also, they may not cover large renovation costs.

Some prominent property developers in Dubai offer financing options for renovations, especially if the property was purchased from them. This can work out to be a convenient and integrated option.

‘Renovate now, pay later’ is a financing option offered by Reno. In this model, the clients are not expected to pay the entire amount, upfront. They can proceed with the renovation project and pay later through 3, 6, or 9 installment plans, subsequently.

The entire process starts with an initial consultation to discuss budgets, timelines, and requirements of the project. This is followed by drawing a proposal and agreement that outlines everything to avoid any ambiguity during the project. Post- approval from the client, the work is started and completed and handed over in mutually agreed upon time. It is only after the handing over that the client is expected to pay.

This plan ensures immediate access to services, financial flexibility, budget management, quality design services, convenience, flexible payment terms and therefore, enhanced satisfaction and enjoyment all through the process of renovating your space.

Here are some tips we recommend keeping in mind as you probe your options:

• Evaluate Costs: Always do your groundwork and get multiple quotes from contractors to understand the full cost of the renovation.
• Compare Options: Make an excel sheet or table to compare terms, interest rates, and repayment conditions of different financing options.
• Plan Budget: Always plan for any financial exigency because there will always be unexpected expenses and there needs to be a buffer.
• Check Eligibility: Double-check and verify to the minutest detail all eligibility criteria for loans and financing options.

Reno is one company that offers a lot of financing options for home renovations in Dubai. Their ‘Renovate now, pay later’ makes it easier for everyone to start work on renovating their homes. The staggered payment plans are reassuring and make the clients feel adept and able to move forward with their plans for their home.

In order to know more about Reno and their dream-building, get in touch with our experts who are just a phone call away.