Which foreign investors are qualified to apply for a Dubai home mortgage
Published Date: 25th Oct, 2024
Verify your eligibility before submitting an application for a non-resident mortgage in Dubai.
Please take note that these standards are merely a broad guideline and may vary amongst UAE banks.
Becoming a citizen of a nation on the bank's list may be a requirement before you can apply for a non-resident mortgage in Dubai.
For you to submit an application for a non-resident mortgage, you must be a self-employed or salaried individual.
For those looking to apply for a non-resident home loans in Dubai, certain financial institutions also have age restrictions. For example, in order to apply for a home loan, non-resident applicants must be older than 21 according to ADCB regulations.
Additionally, you must fulfill the bank's minimum monthly income requirement, which may vary for non-residents and UAE expats. This minimum earnings requirement also needs to be fulfilled after post-tax deductions. For instance, in order for expatriate residents to be eligible for their mortgages, ADCB requires them to earn at least AED 15,000 per month (post-tax).
A list of developers of real estate and projects that have been authorized for mortgage financing is also available from certain banks. Before you apply for a mortgage, you must confirm that your property is on this approved list.
Which documents are needed for mortgage loans to non-residents of the United Arab Emirates?
You must provide specific documentation when seeking mortgage financing for non-residents. Recall that depending on the property you're buying and the conditions of the transaction, additional paperwork might be needed.
For home loans in Dubai, non-resident applicants must typically provide the following paperwork:
A current passport that serves as identification
Bank statements (as evidence of funds; for the last three to six months)
To obtain a home loan, you might be required to provide more documentation for
Dubai non-residents, including:
Tax returns, if any
Paystubs or salary certificates (if you are an employee with a salary)
Trade license and financial statements that have been audited (if you work for yourself)
Information about any current loans
Dubai home loan features for non-residents
Details of mortgages for foreigners in Dubai include the following features:
The bank and your financial situation will determine the maximum loan amount. ADCB is prepared for financing up to AED 15 million, whereas Mashreq only funds up to Dh. 10 million.
LTV ratios: If the real estate is worthwhile up to AED 5 million, non-UAE nationals must contribute at least 20% of the purchase price as a deposit (for first-time buyers), per the UAE Mortgage Law. For properties valued at more than AED 5 million, non-UAE nationals must make a 30% down payment. For non-resident applicants, certain banks in the United Arab Emirates only provide financing as much as fifty percent of the property value.
Interest Rates: Various interest rate options are available from certain UAE banks. For additional clarification, read more about the advantages of flat vs. decreased interest rates. Nonetheless, you should anticipate a marginally higher rate of interest than that of Dubai's foreign residents.
Loan Term: Depending on their profiles, banks may grant non-resident investors a shorter loan term than the 25-year maximum for resident expatriates. Furthermore, banks might impose a requirement that the applicant's age not surpass 65 years (if they are salaried) or the age of 70 (if they are self-employed) for the duration of the loan.
Date: 25th Oct, 2024
