mortage in dubai

Dubai’s real estate market is huge and competitive. That makes it efficient and flexible as well. In Dubai, you can purchase property both with cash or on a mortgage. While cash remains the most cost-effective method, a mortgage is convenient and preferable for many buyers as it is flexible and manageable. But how to get a mortgage in Dubai? If you plan to buy a property on a mortgage, you should get the essential information regarding home loans, eligibility criteria, and the procedure to apply.

How to get a mortgage in Dubai?

If you are planning to buy an apartment in Dubai, you can apply for a home loan. That, of course, has its own eligibility criteria. This article ought to familiarize you with the requirements and procedures to apply for a mortgage in Dubai.

First thing’s first, let’s go through the eligibility criteria.

Who is eligible to apply for a mortgage in Dubai?

To apply for a mortgage in Dubai, you need to meet the following criteria:

  • Must be a UAE national or resident
  • The age must be in the range of 21 and 65.
  • Monthly income must be 15,000 AED minimum (salaried)
  • Monthly income must be 25,000 AED minimum (self-employed)

Please keep in mind that this does not oust non-residents from buying a property. Some banks in Dubai offer home loans to non-resident buyers too. However, the choices are very limited.

Note: Of these requirements, the minimum salary condition can vary from bank to bank as every bank has its own policies. Several banks in Dubai can offer you a home loan with a monthly income of 8,000 AED.

What are the required documents to apply for a home loan in Dubai?

It goes without saying that every bank has its own requirements. Overall, the following are the documents required to apply for a mortgage in Dubai:

  • A copy of the visa
  • A copy of the passport
  • A copy of Emirates ID
  • Salary slip (or salary certificate)
  • Proof of residence
  • Bank statement(s) for the last six months
  • Credit card statement(s) (latest)

Also, note down that the minimum down payment is 15% for UAE nationals and 20% for expats. This is for properties worth up to 5 million AED.

Note: Non-residents do not need all these documents. To get started, a copy of the passport and bank statements will do the gig. This brings us to the next question:

Can expats purchase a property in Dubai?

Yes. Dubai has designated freehold areas where expats are allowed to buy a property. Expats can even apply for a mortgage if they meet the criteria of the government and the bank.

Is getting a mortgage in Dubai a lengthy process?

It is not very lengthy. It takes about two weeks in total to get the final offer or mortgage letter.

How to get a mortgage in Dubai?

Now since you are familiar with the basics, let’s jump into the procedure of applying.

Find a broker

It is mandatory for the banks that approve home loans to be registered with the Dubai Land Department. You can go to a bank directly by yourself to get mortgage details. But we advise you to hire a broker on your behalf.

Hiring a broker makes the process more efficient as a broker has the knowledge and experience to take you through the process smoothly.  This way, you can concentrate on searching for a house instead of being mingled up in the bank procedures.

Select the mortgage that fits your needs

Every bank offers different types of mortgages and you need to go through them to ensure you select the right one that fits your circumstances and needs. Carefully consider your lifestyle, home needs, loan amount required, and the cash deposit you have ready before diving into the procedure. You can use online mortgage calculators to develop a better insight.

Get a pre-approval letter

This is the most important step. The pre-approval letter issued by the bank is basically an official document and evidence that you qualify for obtaining housing finance. Getting a pre-approval letter can take about three to five working days.

Search and select your house

When you get your hands on the pre-approval letters, start hunting for the house that fits your needs. The pre-approval letter lasts for 60 to 90 days so you get enough time to make an informed decision.

Finalize your deal to purchase the property

When you have found the property you want to buy, you can reach out to your bank to finalize the deal. Before finalizing the loan agreement, the bank will send a property evaluator to your selected property. If he gives a green signal, you are ready to go!

When everything is agreed upon, you can pay your deposit. On the agreed day, the bank will release your funds, pay the loan amount, and you will become the new owner of the property.

And this concludes our article on how to get a mortgage in Dubai. Getting a home loan is just a start.  Once you are in, there are a lot of legal factors you must consider.

Got any more questions? Feel free to reach out to Skyloov’s agent to help you out with any query related to Dubai’s real estate market.