Things To Know When Getting A House Mortgage Loan As Expat In Dubai

Getting a mortgage sounds easy but once you start this process, you will find that there are a lot of little details no one tells you about. These details can make the mortgage loan process discouraging.

This is the same when you look to get an international mortgage when you are ready to buy an apartment, villa, or house in Dubai. The rules are different when you are an expat and you need to know what to expect if you are going to be successful in obtaining a good mortgage in this city.

Can An Ex-Pat Get A Home Loan In Dubai?

Yes, an expat can get a mortgage in this city. It may not be easy as there are a few extra hoops for ex-pats to jump through before they are approved. Qualifying for a mortgage will depend on if you meet the following requirements or not:

  • must have a minimum monthly salary of 10,00 AED but self-employed needs a minimum of 25,000 AED
  • at least 6 months of employment history at the same company
  • a minimum of 20% deposit for properties valued at 5,000,000 AED or less and 30% for properties valued at 5,000,000 AED or more. 50% for off-plan properties
  • be between the ages of 21 and 65 or 70 if self-employed

Once you meet those requirements, you can take the next step in obtaining a mortgage.

Mortgages In Dubai For Non-Residents

Two issues that you need to know about are very important when it comes to being successful in getting a mortgage from a Dubai bank. The first issue is you have to make sure your home country is on the bank’s approved list. You must be a citizen of that country.

The second issue is that the development you are buying your property in, as well as the developer, has to be on the bank’s approved list. If in either case your country or they are not, then it is highly unlikely that you will be granted a mortgage loan. Then there are the documents that you will and may need:

  • Valid passport (as proof of identity)
  • Bank statements (for the last 3 to 6 months; as proof of funds)
  • Tax returns (if applicable)
  • Salary certificates or payslips (if you are a salaried individual)
  • Trade licence and audited financial statements (if you are self-employed)
  • Details of any existing loans

A good real estate agent will inform you of all the documents you will need before you make your application.

Dubai Mortgage For UK Residents

The lending process for all ex-pats is going to be the same for UK residents. They just have to meet the requirements and hopefully, the bank will give its okay. Nothing is certain until the bank says okay.

What all ex-pats have to be careful of is a couple of little details not yet mentioned in this article. First, some banks have a maximum lending limit. One bank may only lend up to 10,000,000 AED while others will go to 24,000,000 AED.

Make sure your mortgage request is under the bank’s maximum lending limits. Second, the term of the mortgage may not be set at the maximum limit either. Generally, mortgage loans in Dubai and the UAE are set at 25 years.

But some banks may set the loan term a lot shorter than that maximum limit. Also, be careful when you are in the senior citizen age bracket. Loans may not be approved when you are older and in your golden years.

Some banks stop at age 65 and others at age 70 if you are self-employed.

Home Loans In UAE For Ex-Pats

These are available and they have a little variety to them depending on the bank you are making your loan application. There are two types of loans you can get in this country.

One is the fixed rate loan and this mortgage is only for a 1 to 5-year term. Then it transitions to the second type of loan, the variable rate option. This second loan option will provide you with the chance to get a lower rate if rates fall but the opposite will be true as well.

Also, loan rates vary between banks which means you should do some shopping around first to get the best rate possible. Your real estate agent should be able to help you with recommendations.

Emirates NBD Mortgage

This mortgage also seems to vary between banks. One bank is offering to finance up to 20 million AED, charge no processing fee, and finance up to 80% of the property. Another bank is not so generous as it goes to 15 million AED only and up to 75% of the property value.

It is best to talk to a good real estate agent or loan officer who are expert in Dubai mortgages to get the best rates and picture of the loan scene.

Minimum Salary For A Home Loan In UAE

The minimum monthly salary does seem to be 10,000 AED when you are an employee of a company. This monthly amount is extended when you are self-employed.

When you own and run your own company, you need to be making at least 25,000 AED before the banks will accept your loan application. There may be other banks that will go as low as 8,000 AED per month but you would have to do some shopping around to find those lenders.

Some Additional Words

Hunting for a good mortgage takes patience and professional guidance. It is a difficult task to do when you are an expat. That is why you need to call our company. We have over 10 years of mortgage loan experience in the UAE and Dubai.

When you are thinking of getting a mortgage loan in that region of the world, call us first. Our experts can help you navigate this difficult financial area and make sure you are getting the best rates and terms possible. Call today for the best help.

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