Dubai real estate: How to apply for a mortgage

With proper preparation and this step-by-step guidance, the process of securing mortgage financing can be straightforward for both UAE nationals and expats looking to purchase property in Dubai.

For many, the dream of owning property in Dubai can become a reality with the help of mortgage financing.

Here is a comprehensive guide that outlines the process of securing a home loan, from eligibility requirements to finalizing the purchase.

Who is eligible for a mortgage in Dubai?

Expats and UAE nationals aged 21 to 65 with stable incomes can potentially qualify for a mortgage.

Banks typically require a minimum monthly salary of AED 15,000 for salaried employees and AED 25,000 for self-employed.

However, non-residents face more limited options, as few banks provide mortgages to overseas investors.

Other common requirements include minimum employment history and working for approved employers.

Required documentation

Applicants must submit several documents to prove identity, residence status, income, and creditworthiness.

Standard requirements could typically include passport copies, Emirates IDs, salary certificates, recent pay slips, bank statements for the past 6 months, tenancy contracts or DEWA bills, credit card statements, and any other materials the bank requests.

However, non-residents need only provide a passport copy and recent bank statements.

Step-by-step process

Step 1: Research different lenders like local banks and consider hiring a mortgage broker for expert guidance and access to exclusive deals. Brokers have extensive knowledge of available options.

Step 2: Choose between fixed and variable-rate mortgages based on the property type, required loan amount, amount available for a down payment, income stability, future plans, and other lifestyle factors. Banks offer online calculators to estimate monthly payments.

Step 3: Obtain a pre-approval letter from the bank confirming your eligibility and maximum approved loan amount. This provides assurance that financing will be secured. Online pre-approvals can be instant, while traditional applications may take three to five days.

Step 4: Search for your dream home within the 60 to 90-day validity period of the pre-approval. Make an offer once you find the perfect property.

Step 5: Finalise the purchase agreement with the seller, pay the required deposit, and complete the property transfer process. This involves the bank releasing the approved mortgage amount directly to the seller.

Everything you need to know

• Expats can borrow up to 80 percent of a property’s value, requiring a 20 to 25 percent down payment.
• Mortgage approvals typically take 10 business days.
• Other buying costs include Dubai Land Department fees.
• Foreigners must follow specific property ownership rules.

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