Mortgage in Dubai

Dubai offers the opportunity to purchase real estate through mortgage financing, even for foreign citizens. If you are an expatriate looking to obtain a mortgage for property acquisition, certain requirements must be met.

Main Requirements for Foreign Borrowers

According to Dubai’s legislation, the following requirements are applicable to foreign citizens seeking a mortgage:

• Residential visa
• Ownership of a business in the UAE or employment in a local company
• Sufficient down payment (typically around 25%)
• Borrower’s age between 21 and 65 years. For self-employed individuals, the maximum age is 70.
• Ownership of property within the UAE

Choosing the Right Bank

The most crucial step in obtaining a mortgage is selecting the right bank. Dubai is home to both local and European banks, each offering individual mortgage packages tailored for foreign citizens. You can browse through the offerings available on their websites or seek assistance from a mortgage broker to help you find a suitable option.

Requirements for Mortgage Approval

After applying to a bank, the initial approval process begins, during which specialists assess the borrower’s eligibility. This procedure typically takes around 3 to 4 working days.

During the assessment, experts evaluate the borrower’s creditworthiness, assets, income and credit history. It’s important to note that the preliminary evaluation is a crucial step for the bank. To initiate this process, the following documents need to be provided to the bank:

• Completed mortgage application form
• Documents confirming the borrower’s financial capability and income, such as bank statements and payment records for the past six months
• For salaried employees, an income certificate and information about their employers are required. If the potential borrower is self-employed, they need to provide profit and loss statements, along with audited financial results for the past two years.

Please be aware that the specific document requirements may vary depending on the bank. Lenders have the right to request additional documents.

Once the borrower meets the lender’s requirements, they have two months to search for suitable properties. After selecting a property, the buyer signs a memorandum of understanding and pays a deposit. The bank then appoints an independent valuation expert to assess the actual value of the property. Following this, the lender makes the final decision regarding the mortgage approval.

Important note: The loan application review process involves a fee charged by the bank, typically 1% of the total property value. However, if the application is declined, the bank refunds this amount. Additionally, many banks require mandatory insurance coverage as a condition for mortgage approval. The insurance cost usually ranges from 0.5% to 1% of the property value.

Once the mortgage is approved and the property purchase is finalized, the borrower must register their property rights with the Dubai Land Department and obtain the corresponding certificate. The client receives a copy of the certificate, while the original remains with the bank until the mortgage is fully repaid.