How to Get a Mortgage in Dubai: A Complete Step-by-Step Guide
The Complete Financing Blueprint for Expats & Non-Residents
To get a mortgage in Dubai, buyers must be at least 21 years old, earn a minimum monthly salary of AED 15,000 for salaried individuals, and maintain a Debt Burden Ratio (DBR) under 50%. First-time expat resident buyers can secure a maximum Loan-to-Value (LTV) ratio of up to 75% on ready properties under AED 5 million, requiring a minimum cash down payment of 25%.
- 01
Finding a Lender
Banks are the most common lenders to approach for mortgages, but they must be registered with the Dubai Land Department. Explore mortgage deals from different banks or work with the help of an agent who has insight on the local market, and can compare mortgage products for you. This allows you to put effort into buying the right property for you.
- 02
Choosing the Right Mortgage for You
There are different kinds of mortgages in Dubai, falling into categories including fixed-rate, or variable-rate mortgages. The fixed rate has a set interest rate for the loan, while the variable rate has a variable interest rate that fluctuates over time. Lenders have an online mortgage calculator where you can get an idea of your monthly payments.
- 03
Get a Pre Approval Letter from the Bank
For the process of applying for a mortgage, getting a pre-approval letter from you bank is the most crucial step you have to consider. The bank issues this as an official document, showing eligibility evidence for the borrower to get the mortgage as your housing finance option. This letter also outlines clearly the maximum mortgage amount. Normally it takes 3 to 5 working days to obtain this letter from the bank.
- 04
Choosing a Desired Property
Once you have received a pre-approval letter from the bank, you can look out for your dream home in the city of Dubai. Pre-approved letters are valid for around 60 to 90 days, depending on the lender. You have to manage your property hunting in this time frame, giving you sufficient days to find your dream home with the help of a real estate agent. They can pick the property under your desired budget, and preference.
- 05
Finalise your Property Purchase
Once you have found your dream property in Dubai, you can contact your bank and finalise your loan agreement. The bank can send an evaluator to evaluate the property value and help you make a reasonable offer. You can then sign the lease agreement to purchase the property and pay the deposit. The lender will then release the loan amount and you can proceed with completing the purchase.
Securing the right home loan framework in Dubai requires a deep understanding of current UAE Central Bank regulations, fluctuating EIBOR interest rates, and individual bank criteria. Navigating the pre-approval phase correctly with comprehensive income mapping is vital to protecting your initial deposit and ensuring a seamless transaction at the DLD trustee office.
Want to compare the latest fixed interest rates or check your mortgage eligibility across top banks? Click here to talk with our Seven Century team on WhatsApp to get custom financing solutions matching your investment layout.
Everything you need to know
Find quick answers to common questions about buying, selling, renting and investing in Dubai real estate.
Yes, non-residents are legally eligible to purchase property and obtain mortgage financing in the UAE. The maximum LTV for non-residents is typically capped at 50% of the property value, meaning a minimum 50% cash down payment is required.
The maximum repayment period for a home loan in Dubai is up to 25 years. Keep in mind that the loan must be fully repaid before the borrower reaches the age of 65 for salaried expats or age 70 for self-employed individuals.
Beyond your down payment, you must budget for a 0.25% DLD mortgage registration fee, a bank valuation fee (ranging from AED 2,500 to AED 3,500), a standard 4% DLD transfer fee, and standard bank processing charges.
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