FREQUENTLY ASKED QUESTIONS
FREQUENTLY ASKED QUESTIONS
A mortgage in Dubai or the UAE is a type of loan offered by banks and financial institutions to help individuals purchase a property. The borrower is required to repay the loan in installments over a set period, with interest.
Eligibility criteria vary by lender, but typically, applicants must:
Be over 21 years old.
Have a minimum salary (often between AED 10,000 and AED 15,000 per month).
Be salaried, self-employed, or expatriates with a stable income.
Meet the bank’s credit and financial requirements.
The loan amount depends on factors such as your income, the property’s value, and the lender's policies. Typically, you can borrow up to 80% of the property value if you’re a UAE resident, and up to 75% if you’re an expatriate.
For UAE residents, a minimum down payment of 20% of the property value is usually required. UAE nationals need a downpayment of 15% and Non resident minimum up to 30%-40% based on the lender’s policies.
The maximum tenure for a home loan is generally 25 years, although this varies based on the lender’s policies and the borrower’s age.
Fixed interest rate: The rate remains constant for a specific period (usually 1-5 years).
Variable interest rate: The rate fluctuates based on market conditions and the lender’s policies.
Hybrid rate: A combination of fixed and variable rates.
Valid passport and visa.
Emirates ID (for residents).
Proof of income (salary slips, bank statements, etc.).
Employment or business details.
Proof of down payment and property documentation.
Fees typically include:
Processing fee: Usually around 1% of the loan amount.
Valuation fee: To assess the property’s market value.
Mortgage registration fee: Paid to the Dubai Land Department or relevant authority.
Early settlement fee: If you repay the loan before the end of the term.
Yes, expatriates can apply for a mortgage in Dubai and the UAE. However, the terms, down payment requirements, and eligibility criteria may differ compared to UAE nationals.
If you default on your mortgage payments, the lender can take legal action, which could result in the foreclosure of the property and auction to recover the loan amount. It may also affect your credit score and future borrowing ability.
Yes, many banks and financial institutions offer mortgage pre-approval, which gives you an idea of how much you can borrow before you start looking for a property. It usually lasts for 60-90 days.
Some lenders offer special mortgage packages or lower interest rates for first-time homebuyers, depending on the property value and other factors.
Yes, you can transfer your mortgage to another lender in a process called mortgage buyout or remortgaging. It allows you to benefit from better interest rates or terms.
Yes, several banks offer mortgage financing for off-plan properties (under construction), but this is usually subject to specific conditions and lender approval.
Yes, several banks offer mortgage financing for plot purchase and construction, but this is usually subject to specific conditions and lender approval.
Yes, non-resident or foreign nationals can apply for a mortgage in Dubai and the UAE. However, the terms, down payment requirements, and eligibility criteria may differ compared to UAE nationals and UAE residents.
Yes, you can apply for an offset mortgage in Dubai or the UAE, provided you meet the lender's eligibility criteria. Many banks and financial institutions in the UAE offer this type of mortgage, which allows you to link your savings to reduce the interest on your loan.