Taking Out a Mortgage in Dubai as a Non-Resident

Though cash and interest-free installment plans prevail in Dubai, mortgages remain a top three choice. To be specific, in 2024, 20% of real estate transactions in the emirate involved home loans.

Dubai’s favorable local laws allow full foreign ownership in freehold areas even for non-residents, which motivates foreign citizens to take out mortgages to purchase residential and commercial real estate. 

Dubai banks offer mortgage and insurance packages specifically for non-residents and expatriates. However, you must meet eligibility criteria that vary by bank to obtain a mortgage in the emirate.

Mortgage Eligibility Criteria for Foreigners

To qualify for a mortgage in Dubai, a borrower has to meet nationality, employment status, income, and age requirements.

• Applicants must hold a valid UAE residency visa.
• Applicants must also be citizens of countries recognized by the lending bank. Typically, you will have to scan through a bank’s website or call a hotline to confirm you are eligible.
• Salaried employees of a local company, self-employed individuals, and UAE business owners can apply. All must provide proof of income.
• A minimum monthly income between AED 7,000 to AED 15,000 (USD 1,905 to 4,080) is required post-tax. For self-employed individuals, the bar is raised and can reach AED 40,000 (USD 10,890).
• Applicants must be from 21 to 65 years old. Some banks consider 25 as a minimum age. For self-employed individuals, the maximum age is 70.
• The applicant must be able to cover the required down payment (around 20-25% of the total purchase price).

Dubai Mortgages for Non-Residents

Non-resident mortgages in the UAE differ from resident loans in:

Interest Rates

Depending on the bank, rates may range from 3% to 5%. In mid-January 2025, RAKBANK is offering a fixed interest rate of 4.5% for three years.

Loan Tenure

Maximum loan terms vary. While residents may secure loans for up to 25 years, non-residents face shorter terms.

The ADCB bank, for example, gives the green light for non-resident mortgages for 15 years.

Loan-to-Value Ratios

A minimum down payment of 20% is required for properties valued up to AED 5 million (USD 1,361,280). For more expensive properties, the down payment may increase to 35%. For repeat purchases or investments, the down payment can rise to 40%.

Available Banks

Dubai is home to both local and European banks offering mortgage packages for foreign citizens. You can browse through their website offerings, use their mortgage calculators, or seek assistance from a mortgage broker to help you find a suitable option.

Among the banks currently offering home loans for non-residents are First Abu Dhabi Bank (FAB), RAKBANK, CBD, and ADCB, to name a few.

The Application Process

The mortgage application process for non-residents involves five steps:

Step 1. Collate Documentation

Provide the following documents to the bank:

• A valid ID, such as a passport.
• Emirates ID (if available).
• Documents confirming your financial capability and income, that is, bank statements and payment records for the past six months. Some banks, like ADCB, also require a credit bureau report and tax returns for the last two years.
• Salaried employees need to provide an income certificate and information about their employers.

If you are self-employed, prepare a P&L statement, along with audited financial results for the past two years.

• Some banks, like Commercial Bank of Dubai (CBD), also require self-employed expatriates to have at least three years of experience in business.

Step 2. Get a Pre-Approval

Obtain a mortgage pre-approval from the bank or broker by completing the application form and providing your papers.

Specific document requirements may vary depending on the bank. Lenders have the right to request additional documents too.

After applying to a bank, you begin the initial approval process when specialists assess your creditworthiness, assets, income, and credit history. This procedure takes around three to four working days.

Step 3. Select a Suitable Property

Once you have cleared the lender’s requirements, you have two months to hunt for suitable properties. Choose a property within your budget and agree on a purchase price with the seller or developer.

To reserve your favorite property, you will need to sign a memorandum of understanding and pay a down payment. The bank then appoints an independent valuation expert to assess the actual value of the property.

Step 4. Obtain Final Approval

When the property value is confirmed, you may be asked to provide additional documentation to seal the deal with the lender.

Step 5. Register Your Property

Once the mortgage is approved and the property purchase is finalized, you must register your property rights with the Dubai Land Department and obtain the title deed.

You then receive a copy of this document, while the original remains with the bank until you have paid off your mortgage one hundred percent.

Mortgage Costs and Fees

Down Payment

Minimum of 25% for properties up to AED 5 million and higher percentages for more expensive properties.

Mortgage Registration Fee

The loan application review is charged with a bank fee ranging from 0.25% to 1.05% of the mortgage value. If the application is declined, the bank issues a refund.

Bank Fees

These may include processing fees and property valuation fees.

At RAKBANK and CBD, the valuation fee for 2025 is AED 3,150 (USD 857).

Loan Protection Insurance

Many banks require mandatory insurance coverage for mortgage approval. The insurance cost ranges from 0.5% to 1% of the property value.

To Leave No Stone Unturned: Common Challenges and Solutions

Yes, non-residents have to jump through hoops when applying for mortgages in Dubai. That is why many foreign buyers opt for installment plans offered by local developers instead.

The limited mortgage options are the first hurdle. Dubai banks offer fewer products for non-residents in contrast to what they offer for UAE residents and nationals. So, doing your homework on banks that cater to foreign investors is crucial.

Another challenge is higher requirements. Non-residents often face stricter income verification processes than residents. Consulting with a mortgage broker or a real estate agent helps tick all the boxes worry-free.

Another advice from our experts is to prepare documentation early. Ensuring all necessary documents are ready will expedite the application process.

Understanding market conditions can also be an advantage. Interest rates and market trends fluctuate, so keep your finger on the pulse to time your purchase properly.

Are you considering investing in Dubai’s real estate market as a non-resident or an expatriate? You can easily take out a mortgage for an apartment in Dubai or another residential or commercial space if you play your cards right.

With a professional by your side, you can get a better rate. Our expert advisors are here to help you secure a mortgage. Contact us to explore mortgage options and off-plan developments with interest-free installment plans!