How to Get a Mortgage in Dubai: Eligibility, Documents & More

Dubai’s real estate market offers various financing opportunities for property purchase, including for residents and non-residents. Securing a mortgage facilitates property ownership, providing a structured approach to investment or home acquisition. This guide clarifies the steps involved in obtaining a mortgage in Dubai.

Eligibility Criteria and Required Documents

Prospective borrowers in Dubai must be at least 21 years old. Maximum age at loan maturity is generally 65 for salaried individuals, and 70 for self-employed individuals and UAE nationals. Minimum monthly income requirements vary, typically AED 10,000 to AED 15,000 for residents and expatriates, with self-employed individuals often requiring around AED 25,000 per month and stable business income for at least two years.

Residency status influences down payment requirements and loan-to-value (LTV) ratios. For properties valued up to AED 5 million, UAE nationals may secure financing up to 85% LTV, while expatriates typically receive up to 80%. Non-residents generally face higher down payment requirements, often needing 35% to 40% of the property’s value as a deposit, with LTVs potentially capped at 50% to 65%. A strong credit score from the Al Etihad Credit Bureau (AECB) is a significant factor. A score of 650 or higher is generally required for basic eligibility, with scores above 700 or 750 often leading to more favorable terms and interest rates.

Required personal identification includes passport, valid visa, and Emirates ID for residents. Non-residents typically need a valid passport and home country bank statements.

Financial statements are crucial for assessing income and stability. Salaried individuals must provide salary certificates, recent payslips, and bank statements for the last three to six months. Self-employed applicants generally need audited financial statements, trade licenses, and bank statements, often for the past six to twelve months. Additionally, proof of residence, such as a tenancy contract or utility bills, is commonly requested.

Property-related documents include the property title deed or the sales and purchase agreement (SPA). These documents confirm the legal status and acquisition terms, allowing the lender to verify the asset. Providing all necessary documents accurately and completely expedites the initial eligibility assessment and helps avoid delays.

Understanding Mortgage Products and Associated Costs

Conventional and Islamic financing options are available. Conventional mortgages are interest-based loans, where borrowers repay the principal with an agreed-upon interest rate.

Islamic financing adheres to Sharia principles, avoiding interest (riba) and utilizing structures like Murabaha or Ijarah. Murabaha is a cost-plus-profit arrangement where the bank purchases the property and sells it to the customer at a higher, pre-agreed price, paid in installments. Ijarah is a lease-to-own model where the bank leases the property to the customer, with ownership transferring at the end of the lease term.

Fixed-rate mortgages maintain a constant interest rate for a predetermined period, typically one to five years, offering predictable monthly payments. This predictability can be beneficial for budgeting, though fixed rates may sometimes be initially higher than variable rates. After the fixed period, the loan usually converts to a variable rate.

Variable-rate mortgages have interest rates that fluctuate based on market conditions, often linked to the Emirates Interbank Offered Rate (EIBOR). While variable rates can offer lower initial payments and benefit from declining interest rates, they also carry the risk of increased payments if rates rise.

Associated costs include a property valuation fee, typically AED 2,500 to AED 3,500, required by banks to assess market value. Banks also charge an arrangement fee, between 0.5% and 1% of the loan amount. The Dubai Land Department (DLD) levies a mortgage registration fee, set at 0.25% of the mortgage value, plus an administrative fee of AED 290.

Additional costs can include early settlement fees if the borrower chooses to repay the mortgage ahead of schedule. The UAE Central Bank caps this fee at 1% of the outstanding loan amount or AED 10,000, whichever is lower. This regulation provides flexibility for borrowers, though some banks may have specific terms. Property and life insurance are also typically required. These insurance policies protect both the lender and the borrower against unforeseen circumstances affecting property or repayment ability.

The Mortgage Application and Approval Process

The initial step involves selecting a suitable lender, either a bank directly or through a mortgage broker who can compare various offerings. Mortgage brokers can assist in navigating options and ensuring the application package is complete. Many banks in Dubai offer mortgage products for both residents and non-residents, with major local and international institutions participating.

The next phase involves submitting the prepared application package to the chosen lender. This submission initiates the bank’s assessment of the applicant’s financial standing and the property’s value. The lender will conduct a credit assessment, reviewing the applicant’s credit score from the Al Etihad Credit Bureau (AECB) to gauge creditworthiness. A strong credit history can lead to more favorable loan terms and interest rates. Concurrently, the bank arranges for an independent property valuation to confirm the property’s market value.

Following initial assessments, a pre-approval letter is typically issued. This letter is a provisional offer from the bank, indicating the maximum borrowing limit and providing a clearer understanding of potential mortgage terms. Pre-approval can take approximately three to five working days. This step provides borrowers certainty regarding their financial capacity before finalizing a property purchase.

The pre-approval allows the applicant to confidently proceed with finding and making an offer on a property within their approved budget. Once a property is identified and an offer is accepted, the bank moves towards final approval. The lender reviews all documentation, including the final sales and purchase agreement for the property. Final approval confirms the bank’s commitment to disburse the funds, provided all conditions outlined in the offer letter are met.

Property Registration and Mortgage Finalization

A critical document is the No Objection Certificate (NOC) from the property developer. This certificate confirms no outstanding service charges or liabilities and developer consent for sale and transfer. Obtaining the NOC is a prerequisite for proceeding with the transfer at the Dubai Land Department (DLD).

Both the buyer and seller, or their authorized representatives, must visit a DLD-approved trustee office to complete the transaction. During this visit, all required documents are submitted, and the applicable DLD transfer fees are paid. The DLD transfer fee is typically 4% of the property value, and while legally shared between buyer and seller, it is often fully paid by the buyer. Additional administrative fees are also incurred.

Simultaneously with the property transfer, the mortgage is officially registered with the DLD. This registration secures the bank’s interest in the property as collateral for the loan. The mortgage registration fee, which is 0.25% of the loan amount plus an administrative fee, is paid to the DLD. The DLD processes these registrations, ensuring compliance with local real estate laws.

Once all fees are paid and registrations are complete, the final release of funds from the lender to the seller occurs. Subsequently, the DLD issues a new title deed in the buyer’s name, reflecting the change in ownership and noting the registered mortgage. The issuance of the title deed provides the buyer with legal proof of ownership, completing the entire property acquisition process.