Real Estate
How To Apply For a Mortgage in Dubai
April 15, 2024
How To Apply For A Mortgage in Dubai
With thorough preparation and following this step-by-step guidance, securing mortgage financing can be made simple for both UAE nationals and expatriates seeking property in Dubai.
Who is eligible for a mortgage in Dubai?
- Individuals aged 21 to 65, whether expatriates or UAE nationals, with steady incomes, may be eligible for a mortgage.
- Salaried employees are typically expected to earn a minimum monthly salary of AED 15,000, while self-employed individuals may need to earn AED 25,000.
However, non-residents encounter fewer options as only a handful of banks extend mortgages to overseas investors. Additional common prerequisites include a minimum employment history and being employed by approved employers.
Required Documents
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.
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