how to get mortgage in dubai

Guide On How To Get Mortgage In Dubai To Buy Properties

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  1. How Does a Mortgage Work in Dubai?
  2. Key Aspects of Getting a Mortgage in Dubai
  3. What “Non‑Resident Mortgage” Means in Dubai
  4. What are the Steps for Obtaining a Mortgage in Dubai?

Although housing is a basic necessity, most people are unable to make the large upfront cash payments required to purchase a home. People frequently choose not to get a mortgage.

To purchase a home or other property, people typically take out a mortgage, which is a loan from a bank or lender that they agree to repay over time with interest. After you accept a loan, you pay back the loan each month for a long time, usually 15 to 30 years.

Every payment is split into two sections: the principal, which is used to repay the loan, and the interest, which is the cost of borrowing the money. Since the house serves as security, the lender may seize it (a process known as foreclosure) if you are unable to make payments promptly.

How Does a Mortgage Work in Dubai?

guide on mortgage in dubai
Similar to other regions, a mortgage for real estate in Dubai involves borrowing a portion of the property’s cost from a bank, making a down payment on the property, and then repaying the loan with interest (or profit, in Islamic mortgage arrangements) in monthly installments. However, there are local laws and ordinances to follow.

Key Aspects of Getting a Mortgage in Dubai

1. Eligibility

Both UAE nationals, residents, and non-residents can obtain mortgages in Dubai, but the requirements and terms differ:

  • UAE Nationals: Easier access, higher loan-to-value (LTV) ratios, lower interest rates.
  • UAE Residents (Expats): Must be employed or self-employed with verifiable income.
  • Non-Residents: Fewer lenders available, higher down payments, and sometimes shorter loan terms.

2. Affordability / Debt Burden Ratio

Banks check your income, existing debt, credit history, etc. There’s a limit on how much of your monthly income can go to servicing debts, including the mortgage – often not more than 50% (or lower) of your income.

3. Tenure (Loan Term)

Mortgages are typically repaid over 15–25 years, though some go up to 25 years. Also, repayments must often be completed by a certain age (e.g. by 65 or 70).

4. Loan-to-Value (LTV) and Down Payment

This is the difference between the amount you have to pay up front and the portion of the property price that the bank will finance. For instance:

  • For houses under AED 5,000,000, UAE locals often require a down payment of 15-20%, whereas foreigners typically require 20-25%. This is especially true for smaller properties or first-time buyers.
  • Down payments grow by 30-40% or more for off-plan projects or really expensive residences (above AED 5,000,000).

5. Interest Rates

Banks offer fixed‑rate or variable‑rate mortgages. After any fixed period, the rate might switch to something tied to a benchmark (like EIBOR + margin). Rates will vary depending on your profile (salary, down payment, residency status, etc.)

6. Fees and Costs

  • Besides the down payment, there are several other costs:
  • Valuation fee (around AED 3,500) to assess the property’s market value
  • Application fees (can be fixed amounts)
  • Dubai Land Department (DLD) transfer fee (4% of property value)
  • Agent commission (if used), title deed/trustee, etc.

What “Non‑Resident Mortgage” Means in Dubai

mortgage process in dubai
Yes, non-residents can obtain a mortgage in Dubai or the UAE, although the conditions are less advantageous and the regulations are more stringent than for residents. Depending on your nationality, income, place of residence, and amount of down payment, you may or may not qualify.

What Makes It Different from Resident Mortgages?

  • Non-residents frequently have to put down 35-50% (sometimes more) of the property price, in contrast to citizens who might be eligible for lower down payments and greater LTVs on homes. Depending on the bank and the price of the property, the loan frequently only covers 50-65% of the value.
  • Off-plan properties are occasionally permitted but come with greater risk and more stringent restrictions; completed or ready properties are simpler for non-residents. There may be more lenders ready to finance off-plan, though, and residents may have greater options.
  • Strong evidence of financial resources, such as pay stubs, bank statements (from the home country, sometimes six months), tax returns, and even credit history from overseas, is a requisite for non-residents.
  • A minimum bank balance or evidence of significant liquidity may also be required by certain banks. Although residents are also subject to the condition, documentation from local employers or the UAE is typically accepted more easily.
  • Only citizens of “approved” countries are eligible for non-resident mortgages from some banks; those from risky countries may be denied or required to make larger down payments. According to the bank, residents already enjoy some stability from residing in the UAE.

Note: To be safe, make sure to speak with a UAE property or a lawyer. Pay particular attention to questions about whether the property is freehold, what ownership arrangements apply, the fees, and any potential tax repercussions in both the UAE and your home country.

What are the Steps for Obtaining a Mortgage in Dubai?

1. Assess Your Eligibility

Before applying for a mortgage, you need to check whether you’re eligible. Eligibility varies depending on whether you are a UAE resident, non-resident, or expat. The general rules are that your income is a minimum AED 10,000/month (varies) with a good credit history.

2. Determine Your Budget and Loan Amount

According to UAE Central Bank regulations for the The mortgage limit for the first property is up to 80% LTV (Loan-to-Value) for UAE nationals and up to 75% LTV for expatriates. For non-residents LTV is typically capped at 50-60%.

Using a mortgage calculator, you can determine how much is allowed to borrow and what your monthly repayments will be.

3. Get a Mortgage Pre-Approval

A pre-approval is a letter from the bank stating how much you can borrow. It’s valid for 60-90 days and helps you negotiate confidently with sellers. There are separate documents that are required for pre-approval.

For Residents:

  • Copy of your Passport and Visa
  • Emirates ID
  • Salary certificate
  • Bank statements (6 months)
  • Pay slips (last 3-6 months)
  • Credit report from Al Etihad Credit Bureau (AECB)
  • Existing loan/credit card statements

For Non-Residents:

  • Copy of your Passport
  • Proof of income (employment letter or audited financials)
  • Bank statements (6-12 months)
  • Proof of residence in your home country

Once the paper work is underway, you can start looking for a home now that you have been pre-approved. You can collaborate with: RERA-licensed real estate brokers and credible developers (for off-plan properties) and property websites (Bayut, Property Finder, Dubizzle).

After you locate a property, there are two documents to signal Form F and the Memorandum of Understanding (MoU).

Thereafter a 10% down payment is made, which is typically retained by the broker until the transfer.

5. Final Mortgage Approval and Valuation

The bank will designate a valuation firm to determine the property’s market worth when the MoU is signed. At this stage, you can review your documents one last time for final clearance.

6. Signing of the Offer Letter with the Bank and Register of Mortgage

After valuation, the bank will issue a final mortgage offer letter outlining interest rates, fees, and terms which you will sign alongside a witness at the bank.

Then, you and the seller meet at the Dubai Land Department (DLD) or a trustee office to pay the remaining down payment, and the bank releases the loan amount to the seller. There are fees involved which you could request from the bank to disclose.

7. Receive Title Deed and Moving In

You can obtain the Title Deed in your name after completing the registration process. Until you pay back the mortgage, the bank retains the original title deed. The property is currently available for your occupancy or rental.

Emirates NBD: Offer both fixed and variable-rate mortgages with terms up to 25 years. Expatriates can access loans up to AED 15,000,000 with LTV ratios of up to 80 % (nationals up to 85 %).

Dubai Islamic Bank (DIB): As a Shariah‑compliant lender, they provide Islamic “Home Finance” solutions like Murabaha and Ijara, with flexible profit rates from around 1.79 %‑3.75 %, and LTV up to 80-85 %.

Standard Chartered UAE: As a global bank, it offers one-year fixed home loans from around 2.99 %, followed by variable rate tied to EIBOR. LTV 75-80 %.

Mashreq Bank: Known for digital innovation and a range of flexible mortgage options. Available to both residents and non-residents, with competitive rates and user-friendly tools.

Abu Dhabi Commercial Bank (ADCB): Fixed and variable-rate mortgages are offered, some Islamic options included. The terms are up to 25 years, LTV up to 80-85 % for residents (lower for non-residents).

Emirates Islamic Bank (EIB, formerly Emirates Islamic): Offers the “Manzili” Shariah-compliant mortgage starting at 3.49 % with up to 85 % LTV for nationals (slightly lower for expats).

Off Plan Properties For Sale In Dubai
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