How to get a mortgage property in Dubai

Who can get a mortgage in Dubai? 

While getting a mortgage in Dubai is typically not very difficult, there are certain criteria that have to be met by people in order to qualify for one. 

While foreigners in Dubai can apply for a property mortgage, they will have to meet criteria such as having worked in their current job for at least six months to a year - depending on their property location and the lender’s rules 

Self-employed individuals undertaking a Dubai property mortgage will have to show evidence of running their enterprise for at least two years. If they have established a preexisting relationship with their bank, obtaining a mortgage may be easier as the bank is familiar with their circumstances. 

It is important to note that the criteria may be subjective from bank to bank. Certain banks may only accept applicants who work for specific companies. Mortgage buyers must also have a clean credit history at the time of applying, otherwise, they may be rejected by banks. 

Eligibility criteria to get a mortgage in Dubai

To get a mortgage in Dubai for an apartment, villa, or townhouse, you will have to meet the eligibility criteria of the bank. Note that certain banks may have additional criteria for mortgage eligibility. 

The common criteria for property mortgage eligibility in Dubai are: 

• A UAE national or resident 

• Aged between 21 and 65 

• A monthly income of: 

  • At least AED 15K (salaried) 

  • At least AED 25K (self-employed) 

The minimum salary requirement for a property loan in Dubai may also vary per bank. Certain banks may grant a mortgage for UAE nationals who have a monthly income of AED 10K as well. 

Non-residents in Dubai are also eligible for mortgages in Dubai but will have more limited options as there are fewer banks that grant mortgages to non-resident investors in Dubai. 

Documents required to get a mortgage in Dubai 

Before you can buy property in Dubai with a mortgage, you must submit and have your documentation verified by the bank. 

Again, certain documentation requirements may vary per bank, but the following documents are mandated by any bank for a property mortgage: 

• Copies of a valid visa and passport 

• Emirates ID copy 

• A salary slip as proof of employment 

• Copy of tenancy contract/DEWA bill as proof of residence 

• Pay slips and bank statements for the past six months 

• Latest credit card statements 

Non-residents applying for a mortgage in Dubai may need to submit:

• A passport copy 

• Bank statements within the past three months 
  

The process of getting a mortgage in Dubai 

Once your documents are in order, here is a step-by-step guide on how you can obtain a mortgage in Dubai and after that, your dream home. 

1. Find a lender

It is mandatory to secure a mortgage through accredited banks that are registered with the Dubai Land Department (DLD). 

You can either approach a bank directly for a mortgage in Dubai or you can hire a broker to secure the best mortgage loans and rates for you. The advantages of working with a mortgage broker include:

• Valuable insights, knowledge of the real estate market

• Information about relevant mortgage loans that can work best for your circumstances

• Access to the best mortgage rates available in the market

• The ease of focusing on house-hunting instead of trying to understand the entire mortgage process

2. Choose the right mortgage for you

The next step will be to select the right property mortgage.

Before getting a mortgage in Dubai, you should select the right type of mortgage for your finances, property type, and situation. 

The different mortgage types in Dubai include: 

• Fixed-rate mortgage 

• Variable rate mortgage 

• Remortgage 

• Off-set mortgage 

• Investment mortgage 

• Non-resident mortgage 

To get clarity on which mortgage is better suited to you, consider the following factors: 

• The type of property you are looking to buy (e.g. apartment/townhouse/villa) 

• The mortgage loan amount you require 

• The amount of cash deposit you can pay upfront 

• Your income and lifestyle 

Many banks also provide online mortgage calculators that allow you to add your variables and understand the potential costs of monthly installments under the mortgage. 

3. Obtain a pre-approval letter 

Obtaining a pre-approval letter is one of the most important steps to getting a mortgage in Dubai. 

A Dubai mortgage pre-approval letter is an official document issued by the bank as proof of your eligibility for receiving a home loan. It provides an evaluation of your finances and outlines the maximum borrowing link for your mortgage loan.

This is an important step, not only for confirming your budget, but it also shows property sellers that you are a real, qualified potential buyer.

To obtain a pre-approval letter, you will have to fulfill the following criteria: 

• Proof of steady income 

• Good credit score 

• Be at least 21 years of age

Some banks follow a criterion outlining the maximum age of mortgage repayment. That criterion is: 

• 70 years for UAE nationals 

• 65 years for expats (self-employed individuals are an exception and have a limit of 70 years) 

• 65 years for non-residents 

The documents required to get a mortgage pre-approval in Dubai are:

• Valid passport and visa copy 

• Valid Emirates ID copy 

• Salary certificate 

• Bank statements and payslips for the previous six months 

• Disclosures of liabilities such as car loan payments, personal loans, and credit card bills 

Upon the submission of these documents, you will receive a pre-approval letter from the bank for your mortgage property in Dubai.

4. Find your dream home 

Once your budget is finalized and the pre-approval letter has been received, it is time to begin house hunting. 

Pre-approval letters are usually valid for 60 to 90 days depending on your bank. This should give you plenty of time to find a property that you like.

Taking the help of RERA-registered real estate agents is immensely helpful as it saves your time and effort and you are being guided by someone who is experienced in the market and can understand your vision. 

Occasionally, certain buyers select a property before applying for a mortgage. While this may work, they may find that they cannot borrow as much as they had hoped, putting the property out of reach.

5. Finalize your property purchase 

Upon finding your dream home, it is time to negotiate with the seller regarding the purchase price. Once you have reached mutual agreement, you can pay your deposit, complete the necessary forms and determine a completion date for the purchase transaction.

You or your mortgage broker will need to contact your bank to finalize the property mortgage agreement. The bank usually has a process wherein they assign a property evaluator to gauge the property’s value and confirm they will lend the agreed amount against it.

During the property transfer, the bank will release your loan amount to the seller - effectively making you the property owner. 

Conclusion 

Getting a mortgage in Dubai for your dream home can be a trouble-free process as long as you follow all legal processes. Using an accredited mortgage broker, lender, and real estate agent will ensure a smooth and stress-free experience when buying a property in Dubai.