Buy real estate with a mortgage in Dubai

Buying a mortgage property in Dubai is a good solution for those who are going to get a home, but do not have the full amount to purchase it. Depending on the borrower and the specific object, you can get a loan for 5-20 years with a different interest rate. 

Let’s say right away that a mortgage in Dubai is not an easy matter for foreigners, because there are quite a lot of conditions. But it’s possible! Our agency will help you with finding a bank, solving legal issues and correctly completing all necessary documents. 

How to get a mortgage in Dubai

The bank will give a mortgage if the following conditions are met:

  • you have a resident visa;
  • you are employed in a Dubai company or you have your own business in the Emirates;
  • you have an initial payment of 25% of the cost of housing, as well as money to cover the costs of preparing all documents (approximately 6-7% of the cost of the object);
  • you are 21-65 years old, no more than 70 years old with self-employment;
  • there is already purchased property on the territory of the Arab Emirates.

Usually 2-3 of these points are already enough to confidently apply for a mortgage in Dubai for foreigners.

The issue of the borrower’s age is very important here. You must belong to the able-bodied population, that is, be no older than 65 years (this is the retirement age in the UAE). In addition, the deadline for the final payment must be before this age. The older you are, the shorter the mortgage term and the higher the monthly payments.

Banks also pay attention to other loans of the borrower. They will check whether you have valid loans and whether it is possible to take out a mortgage in Dubai in addition to them. According to the requirements of the Central Bank of the Emirates, the total amount of loans should not be more than 50% of the borrower’s income per month. At the same time, after the monthly loan payment, at least 3500 dirhams should remain for each family member.

Mortgage rate in Dubai

There are two types of loan rates: fixed or floating. In the first case, mortgage payments + interest are distributed in equal parts for the entire loan term. This option is used for long-term (from 10 years) loans. In the second case, the amount of interest is accrued monthly on the balance of the debt. That is, every month the amount of interest payments becomes less. This type of interest rate is provided for short-term (no more than 5 years) loans. 

Depending on the amount of the mortgage, the object and the initial payment, the loan rate can be from 4 to 7% per annum. 

Real estate in Dubai for a mortgage: registration procedure

First you need to choose a suitable bank — local or European. We will help you choose an institution with favorable mortgage lending conditions. 

Next, you will need to get preliminary approval from the bank — to confirm compliance with the conditions for obtaining a mortgage. To do this, you need to provide the following papers:

  • mortgage application;
  • documents that confirm your income (bank statement, payslips);
  • income statement, employment data.

The purpose of this check is to verify your solvency and positive business reputation. The process usually lasts 3-4 days.

After obtaining the preliminary permission of the bank, you need to find a suitable property within 2 months. Next, you will need to sign a memorandum of intent and deposit a check. 

Then the bank conducts an independent examination of the selected object to assess its current value. And after that, he issues a mortgage or refuses it.

In case of a positive decision, the object acquired at the expense of credit funds is registered with the Dubai Land Department and the right of ownership is issued. The original document is kept in the bank until the full payment of the loan, and you will be given a certified copy of it.

You can find out more information about how to buy an apartment in Dubai with a mortgage from our consultants. Contact us by phone or in a chat on the website.

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