Mortgage for Expats in UAE

Whether you're an expatriate or a local resident, securing a home loan can be highly beneficial when buying property or a residence in the UAE.

While you're likely familiar with aspects such as interest rates and monthly payments, there are additional factors to consider when applying for a loan from a financial institution.

This is particularly true for expatriates, who may encounter a range of mortgage options and specific conditions tailored to their needs.

Types of Home Loans for Expats

There are various mortgage options available in the UAE.

- Fixed-Rate Mortgage: This type of loan features a fixed interest rate determined at the outset based on the loan amount and lender. The rate remains constant throughout the loan term, regardless of market fluctuations.

Current lowest rate: 3.94% for 2 years

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- Variable-Rate Mortgage: A common option in the UAE, this loan's interest rate fluctuates based on the Emirates InterBank Offered Rate (EIBOR). This means you might benefit from lower rates if EIBOR decreases, but your payments could rise if EIBOR increases.

Current lowest variable rate: 0.70% + 3M EIBOR

Home Loan Features for Expats

Here are the main features of home loans available to expatriates and non-residents in the UAE:

- Maximum Loan Amount: Expatriates can typically secure home loans of up to AED 10 million, with some banks offering even higher amounts, depending on the applicant's financial profile and the bank’s policies.

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- Loan-to-Value (LTV) Ratios: For homes valued below AED 5 million, expats generally need to provide a down payment of 20-25%. If the property exceeds AED 5 million, expats may need to make a down payment of at least 30%. Some UAE banks may only finance up to 60% of the property’s value for expats.

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- Interest Rates: Interest rates for expatriates in the UAE may be slightly higher compared to those offered to residents.

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- Loan Tenure: Resident expatriates can usually obtain loans with a maximum term of 25 years. Non-resident investors may face shorter loan terms based on their individual circumstances. Additionally, banks may set age limits, typically not exceeding 65 years for salaried individuals or 70 years for those in business by the end of the loan term.

Important Documents for Expat Home Loan Applications

Expatriates seeking home loans in the UAE will need to provide specific documentation. While requirements may vary by banks, here are some commonly requested documents:

- Personal Identification: A copy of your passport.

- Proof of Residency: Documentation showing your legal residence in the UAE, including address verification.

- Bank Statements: Recent statements from your bank.

- Income Verification: Proof of income, such as salary slips.

How Capital Zone can help

We are the leading mortgage brokers in the UAE, offering comprehensive solutions for all your mortgage needs. With years of experience and expertise in the industry, we are equipped to help you navigate the complex process of securing a mortgage. Whether you're looking to buy your first home, invest in real estate, or refinance your existing mortgage, our team of professionals is here to assist you every step of the way.