Guide On How To Get Mortgage In Dubai To Buy Properties

There are two primary ways to become a property owner in this dynamic metropolis, regardless of experience level: cash purchase or clever use of a mortgage. A cash transaction provides closure, but a mortgage releases flexibility and allows you to use your money towards other objectives. DXB Properties will offer insider tips for getting a mortgage in Dubai, enabling you to transform your dream home idea into a reality.

Who Is Eligible To Get Mortgage In Dubai

Several options are available in Dubai's real estate market ranging from opulent houses to chic apartments. To receive a home loan, there are a few essential prerequisites to meet before you start daydreaming about lounging by the pool.

The good news is there are gatekeepers other than those with resident status. AED 15,000 for salaried individuals and AED 25,000 for self-employed individuals is the minimum monthly income required to buy properties in Dubai for residents and UAE nationals between the ages of 21 and 65 to apply.

However, depending on the bank, this may differ slightly. For citizens of the United Arab Emirates, some may have lower minimums, while others may have higher standards.

Essential Documents To Apply for Mortgage For Residents

Having these documents ready will make your mortgage application process go more smoothly:

• Identification: Emirates ID, passport, and visa.
• Employment Status: Documentation of employment, such as a pay stub.
• Residence: An official document, like a rental agreement or DEWA bill, attesting to your present address.
• Financials: Records about your money, such as paystubs and bank statements.

Step By Step Process to Get Mortgage in Dubai

1. Choose The Right Lender
There are two possibilities for choosing a mortgage lender in Dubai, loans from the banks or mortgage brokers, brokers will compare loans from different lenders to find the best alternative for you whereas bank sell their loans.

This helps you to focus your efforts on locating the ideal property rather than getting caught up in the mortgage procedure.

2. Identifying Your Dubai Mortgage Options
Fixed rate: Your monthly payment will remain the same throughout the period. If you are concerned about income changes, this is an excellent alternative for stability. Variable rate: Your payment may vary based on interest rates. Good if you expect your income to rise.

3. Get A Letter of Preapproval
Obtaining a pre-approval letter is the most significant stage in the mortgage application process in Dubai. This formal document from the bank of your choice attests to your mortgage eligibility and specifies the maximum loan amount you are eligible for. The bank typically issues a pre-approval letter within 3 to 5 business days.

4. Find Your Dream Home
The next step is to find your ideal house in Dubai as you have a budget in place and a pre-approval letter in hand. Pre-approval letters often have a validity period of 60 to 90 days, which allows you plenty of time to shop around and discover the ideal match.

5. Seal The Deal
Once you've found the ideal property, you must complete the transaction by signing the lease agreement and paying a deposit. Following that, your lender will conduct a property valuation to confirm it is worth the amount borrowed. When the property valuation is finished, the lender will release the loan funds, allowing you to finalise the transaction and become the property's owner.

Are Non-Residents In Dubai Able To Get A Mortgage?

Absolutely! A non-resident mortgage can be used to fund the purchase of a home even if you are not a permanent resident of Dubai. Investing in Dubai's real estate market or purchasing a holiday property can be greatly benefited by this. Remember that non-residents may have fewer financing possibilities than UAE residents, so it's best to properly investigate your options before committing.

Eligibility of Foreign Investors to Get Home Mortgage in Dubai

Even though residents have more choices, non-residents can nonetheless obtain a mortgage! Below is a summary of what to plan for:

Verify Your Eligibility: Minimum age requirements (usually over 21), employment or self-employment stability, and citizenship in a recognised nation are the main requirements, though they can differ depending on the bank.

Banks have minimum monthly income requirements, which are generally greater for non-residents than for residents. Make sure the bank accepts the post-tax revenue you receive.

Accepted Real Estate: Certain developers or projects may be the sole properties for which certain institutions provide mortgages. Before applying, make sure the property of your choice is on the bank's approved list.

Remember! It's usually preferable to speak with the bank directly to find out about their particular requirements for non-resident mortgages.

What Documents Are Needed For Non-UAE Residents To Apply For Mortgage Loans?

Gather the documents you need: Prepare to provide these documents with your application to make it go more smoothly.

Identity: A current passport that attests to your identity.

Bank statements: Previous three to six months to demonstrate your availability of finances.
Depending on your work status, the bank may additionally require the following extra documents:

Salary certificates or paystubs proving employment.

Independent contractor: Certified Public Accountant and Verified Financial Records.

Other: Information on any current loans and tax filings, if appropriate.

Note, that this is a general list. It's always best to check with your chosen bank for their specific requirements.

Dubai's Non-Resident Mortgage Features

Here's a summary of what to anticipate in terms of Dubai non-resident mortgages:

Loan Amounts: These change based on your financial status and the bank. Certain banks provide large limits up to AED 15 million.

Down Payment: Generally, you'll need a larger down payment than residents. For homes under AED 5 million, the minimum is 20%; for those over, it is 30%. For non-residents, certain banks may, however, restrict financing to 50% of the property value.

Rates of Interest: Interest rates will likely be higher than for locals.

Loan Tenure: The loan tenure may be shorter than that of residents, and many banks impose age limitations after the loan (typically 65 for salaried borrowers and 70 for self-employed borrowers).

UAE Mortgage Lenders For Foreigners

Foreign National Friendly Lenders: Seek lenders such as Emirates NBD, HSBC, or Mashreq. These banks offer competitive rates and lending quantities and cater to foreign customers.

Minimum Conditions: Typically, a down payment of up to 30% will be required, and you'll need to make at least AED 15,000 per month.

Loan Limits: You may be able to borrow up to AED 15 million for your ideal home, depending on the bank.

Preapproval Benefit: Before you go house-looking, think about obtaining a pre-approval to determine your financing capacity.

It's always recommended to examine terms and prices offered by several lenders to determine the best fit for your financial situation.

UAE Mortgage Rates For 2024

RAKBANK Home In One

In a Nutshell: Reduce Interest & Pay Off Loan Quicker Combining your house loan and current accounts could result in a shorter loan term and possibly lower interest rates with larger down payments.

Adaptability is Essential: With a debit card, chequebook, and online banking, you can access your money at any time.

Competitive Prices: Take advantage of rate reductions beginning at 4.24% annually.

Transparent Fees: AED 1,942.50 for property, AED 1% of outstanding amount or AED 10,000 for early settlement, AED 1,942.50 for processing (0.525% of financed amount, waived for buyouts), and AED 25% of capital balance per year for partial settlement.

Reachable by Many: Minimum service requirements: two years (for self-employed positions) or six months (for paid positions) with a minimum salary requirement of AED 5,000.

Condensed: Lower Interest & Pay Off Debt Faster If you combine your current account with your home loan, you may be able to get a shorter loan term, lower interest rates, and higher down payments.

Flexibility Is Crucial: You can access your money at any moment via an internet banking account, debit card, and chequebook.

Competitive Costs: Benefit from yearly rate decreases starting at 4.24%.

Clear Fees: Property: AED 1,942.50; early settlement: AED 10,000; outstanding amount: AED 1%; processing: AED 1,942.50 (0.525% of financed amount, waived for buyouts); partial settlement: AED 25% of capital balance annually.

Easily Achievable: Minimum service requirements: two years, with a minimum wage requirement of AED, for self-employed positions; six months, for paid employment.

Home Financing from Emirates NBD

Elevated Funding: If you require a large amount of money, you can borrow up to 80% of the value of your property.

Fixed-Rate Security: For dependable monthly payments, select from a variety of fixed-rate plans.

Competitive Rates: Flat rates are also offered, with reductions beginning at 4.99% annually.

Transparent Fees: Processing fees range from 0% to 1% and are contingent upon your circumstances (buyout, salary transfer, etc.). There is a property valuation cost, which is changeable in nature and refundable. The maximum amount for early settlement fees is 10,000 AED, or 1% of the outstanding balance. 20% of partial settlements are charged.

Qualifiability Standards: AED 15,000 is the minimum pay, and there is a 6-month or 2-year minimum service requirement (for paid positions).
Options for Down Payment: The minimum down payment ranges from 20% to 40%, depending on your nationality and whether this is your first or second home.

Loan Specifics: Maximum amount borrowed: 25 million AED

Islamic Finance: Not accessible

Time: Maximum duration of 25 years

Available for: All Dubai and Abu Dhabi properties that have a title deed

Insurance Requirements: Property insurance (0.12% annually on property value) and life insurance (0.016% of the financing amount per month) are mandatory.