Can Foreigners Get a Mortgage in Dubai in 2024? Here's What You Need to Know

Discover if foreigners can get a mortgage in Dubai in 2024. Explore mortgage options, requirements, and the process for expats looking to buy property in Dubai.

Mortgage Options for Expats in Dubai

Conventional Mortgages

• Available for expatriates with UAE residency visas

• Offered by local and international banks in Dubai

• Usually require a deposit of 20% or more for expatriates and 15% for UAE citizens

Islamic Mortgages (Ijarah)

• Sharia-compliant financing for the purchase of a property

• The bank buys the property and leases it to the buyer

• The buyer gradually acquires ownership through rent payments

Developer Payment Plans

• Offered directly by real estate developers

• Allow buyers to spread out payments over a longer period

• May require a smaller down payment compared to bank mortgages

35% of buyers in Dubai have opted for mortgages, with more than 23% of them being end users — Construction Week

Requirements for Foreign Property Buyers in Dubai

UAE visa and valid passport: Non-residents who want to get a mortgage in Dubai need a valid passport and visa. Visas must allow ownership of real estate, with certain categories, such as investor visas, providing authorization to invest in the Dubai real estate market.

Proof of income: Creditors typically require non-residents to submit income documents, such as salary certificates or business financial statements. This verification ensures the financial stability of the borrower to manage mortgage payments.

Credit score and debt-to-income ratio: A good credit score and a low debt-to-income ratio are key. Banks may require credit reports from the applicant's home country to assess creditworthiness. Total debt payments should not exceed 50% of the borrower's income.

Dubai Mortgage Process Overview for Non-Residents

Step No. 1: Pre-approval and property search

The first step in the mortgage process is to obtain preliminary approval from the bank.

• Pre-approval: It involves submitting your financial documents to the bank, which will assess your eligibility and provide an estimated loan amount.

• Property Search: With pre-approval in hand, you can start looking for properties within your budget. Working with a real estate agent who understands the needs of expatriates can simplify this process.

Step No. 2: Property Valuation and Purchase Agreement

After finding the property, the bank conducts an appraisal to determine its market value.

• Valuation: Valuation helps the bank decide how much it is willing to lend to you.

• Purchase Agreement: After the award, you sign a purchase agreement with the seller or developer, which will detail the terms of sale.

Step No. 3: Release of the loan and transfer of real estate

The final steps include the release of the loan and the transfer of ownership of the property.

• Loan Disbursement: After final approval, the bank releases the loan amount to the seller or developer.

• Property Transfer: Ownership of the property is then legally transferred to you, completing the purchase process.

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Best Banks for Expat Mortgages in Dubai

Emirates NBD

• Emirates NBD is one of the leading banks in Dubai that offers mortgage solutions for expatriates.

• Mortgage options:They provide both classical and Islamic mortgages.

• Interest rates and conditions:Emirates NBD offers competitive interest rates and flexible repayment terms.

• Services:The bank has specialized mortgage advisors who help expatriates throughout the process.

HSBC UAE

• HSBC is a well-known international bank with a significant presence in the UAE.

• Types of real estate:HSBC offers mortgages for ready and under construction properties.

• Benefits for customers:Existing HSBC customers can get preferential rates.

• Global reach:Benefits from HSBC's international network, making it easier for expats with global financial ties to manage their mortgage in Dubai.

Banka Bazirganî ya Abu Dhabi (ADCB)

• ADCB is another major bank providing mortgages to expatriates in Dubai.

• Packages:ADCB's 'Home in One' package is tailored for expatriates.

• Appreciation:The bank offers free real estate appraisal services.

• Support:Mortgage specialists at ADCB help clients with paperwork and processing, which ensures a smooth transaction.

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Maximizing Your Mortgage Approval Chances

To improve your chances of getting a mortgage approved, it's key to focus on a few main areas.

• Consistent employment: Maintaining a stable job with a reliable income is essential. Banks prefer borrowers with a stable work history, as this indicates financial stability and the ability to regularly repay the mortgage.

• Savings on a significant down payment: Saving on a significant down payment, ideally 20% or more of the value of the property, can greatly increase your chances of approval and make you the rightful owner of your dream property. A larger down payment reduces the loan-to-value ratio, making you a less risky borrower in the lender's eyes.

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Common mistakes to avoid when applying for a mortgage in Dubai

Lack of research

• Compare offers from multiple banks and negotiate terms. Consider working with a mortgage broker or an experienced realtor to find the best deal.

Underestimation of total cost of ownership

• Take into account additional costs such as registration fees, maintenance and property insurance. Plan for potential interest rate fluctuations and long-term financial liabilities.

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Frequently asked questions about mortgages for foreigners in Dubai

How much can I borrow on a mortgage in Dubai?

Banks usually offer up to 75-80% of the value of real estate for expatriates. The amount of the loan depends on salary, age and credit worthiness.

What is the average interest rate for mortgages in Dubai?

Interest rates vary by bank and market conditions. From 2024, interest rates range from 3.5% to 5% per annum.

Can I get a mortgage in Dubai if I am self-employed?

Yes, self-employed expatriates can qualify for mortgages by providing proof of income through financial statements or tax returns.

Do I need a UAE resident visa to get a mortgage in Dubai?

Most banks require a valid UAE resident visa, but some may consider non-residents individually.

What documents are needed to apply for a mortgage in Dubai?

Commonly required documents include a valid passport, UAE resident visa, proof of income, and employment details.

How long does the mortgage approval process take in Dubai?

The process can take several weeks to a couple of months, depending on the procedures of the bank and the completeness of your application.