Eligibility criteria for non-resident mortgages
Although there are several mortgage options for non-residents in Dubai, you should ensure that you meet the city’s eligibility criteria before applying.
Note that this article lists the general criteria for non-resident mortgages in Dubai, but the rules may vary from bank to bank.
The eligibility criteria are as follows:
-
Every bank in the UAE has a list of eligible countries. You must be a citizen of one of these countries to apply for a mortgage.
-
Anyone applying for a non-resident home loan must either have a monthly income or be self-employed.
-
Certain banks may impose age restrictions on foreign mortgage seekers. Research in advance whether the bank you choose has an age limit.
-
Every bank has a minimum income criterion for employees. Property loans in Dubai for non-residents may have different income requirements than those for expats or UAE nationals.
-
Some banks also have a list of approved real estate developers whose projects are eligible for a mortgage. If you come across such a criterion, make sure that the property and project you want to buy meets these requirements.
Down payment requirements for non-resident mortgages
A crucial part of getting a mortgage in Dubai is ensuring you can provide a suitable down payment (or equity), as this is required by law in the UAE.
While the deposit for Dubai residents is at least 20% for expats and 15% for UAE nationals, the requirements are higher for non-residents.
For non-residents looking to purchase a property in Dubai using a mortgage, most banks require a deposit of 40% to 50% of the property’s value.
How to apply for a non-resident mortgage in Dubai?
It is crucial to understand the process of mortgage lending in Dubai for non-residents. Here are some steps that may help you on your real estate financing journey:
-
Speak to a Dubai-based mortgage advisor. They can help you explore all mortgage options and narrow down the right products based on your individual circumstances. This will save you significant time and effort given the variety of mortgage providers and products in Dubai.
-
With the help of your mortgage advisor, choose a mortgage that best suits your needs, financial situation and other criteria.
-
Get financing pre-approval by submitting the required documents.
-
You will then receive a letter from the bank confirming that they will lend you money.
-
Work with an experienced real estate agent to find the perfect property that meets your needs.
-
Once you have found the right property, your agent will negotiate on your behalf. Make sure that you have agreed on the purchase price of your desired property with the seller.
-
Pay the deposit on the property to secure the sale.
-
Work with the mortgage advisor and a notary to process both the mortgage and the transfer of ownership.
What documents are needed to get a mortgage in Dubai as a non-resident?
An important part of the process for non-resident mortgages in Dubai is collecting, completing and submitting the required documentation to all relevant authorities, including the bank, real estate agent, RERA and more.
Typically, these are the documents you need to submit under UAE international mortgage laws:
-
Valid passport
-
Bank statements from the last three to six months (depending on the bank’s criteria) as proof of available funds
-
Tax returns (if applicable)
-
Pay slips (for employees)
-
Trade license and audited financial reports (for self-employed people)
-
Details of existing loans (if applicable)
Conclusion
While applying for a mortgage for non-residents in Dubai may seem like a challenging task, it is a very popular option for many international investors looking to capitalize on the exciting opportunities in this thriving real estate market.
A mortgage can be a great help for those who want to realize their dream of owning a property in Dubai, step by step.
When it comes to choosing from the many properties in Dubai, Engel & Völkers is always committed to helping you find your dream home. With over 45 years of experience and more than 13,000 real estate experts, Engel & Völkers is at your side with all your real estate investments – be it mortgage advice or the search for the perfect property.
Contact us today.
