Mortgage in Dubai for non-residents: rates in 2024
Foreign nationals are allowed to take out a mortgage in Dubai. The maximum loan amount differs between Dubai’s residents and other foreigners. Residential developers in Dubai also offer installment plans. For some projects installments are valid not only during the construction phase, but also for several years after commissioning.
Dubai Mortgage for Non-Residents
Dubai banks grant loans to foreigners; however mortgage conditions differ for those who have legal resident status and those who do not. Residents can take out a loan for up to 80% of the property value. For non-residents, the minimum down payment is 50%.
The repayment term of the real estate loan is 25 years.
Credit history can be developed within 6 months from the date of obtaining a resident visa.
The total share of new and existing loan obligations should not exceed 50% of the borrower's monthly income. After paying off debt obligations, the income per family member must be at least 950 US dollars per month.
Dubai Mortgage Rates
UAE banks offer mortgages either at a fixed or a floating rate. Mortgage rates in Dubai start at 2.35%.
Maximum loan-to-value ratio | 50–80% |
|---|---|
Rates | from 2.35% per annum |
Loan terms | up to 25 years |
Minimum borrower’s age | 21 years old |
Maximum borrower’s age | 65 years old |
Requirements for Borrowers in the UAE
- Age between 21 and 65 years old.
- Good credit history.
- Sufficient income for making mortgage payments.
- Confirmation of legal origin of funds for a mortgage.
Requirements for Mortgaged Property in Dubai
- The property must be located in the freehold zone.
- The construction of the property has already been completed, or the object will be put into operation no later than two years after taking out the mortgage.
Can One Get a Residence Permit for Buying Real Estate with a Mortgage?
It is possible to obtain UAE residence visa by buying property with a mortgage. For a five-year resident visa, the down payment should be at least 2 million dirhams (approx. 545,000 US dollars), which is required for a resident status. A mortgage loan can be issued for the remainder of the property’s cost.
For a three-year resident visa, there is an additional condition: the minimum amount of 750,000 dirhams (205,000 US dollars) must be at least 50% of the property’s cost.
From $764,000
Completion in: 2027.II Total of 649 apartments
From $8,747,000
Completion in: 2026.IV Total of 53 apartments
From $2,734,000
Completion in: 2026.II Total of 48 apartments
From $266,000
Completion in: 2027.I Total of 387 apartments
From $655,000
Completion in: 2027.I Total of 338 apartments
From $542,000
Built in 2023 Total of 470 apartments
From $301,000
Completion in: 2024.III Total of 400 apartments
What Happens if Mortgage Payment is Overdue in Dubai?
Mortgage payments can be delayed by up to 30 days. If the borrower has delayed payment for more than 30 days, this is indicated in his credit history. After that, the possibility of getting any kind of loan in the UAE again decreases.
If the borrower is unable to pay the mortgage at all, the bank may go to court and seize the mortgaged property to pay off the loan. The foreigner may then be deported from the UAE.
UAE Banks with Favorable Rates
Not all banks in the UAE grant mortgage loans to foreigners. Below are several large and reliable banks in the Emirates where citizens of other countries can take out a mortgage.
HSBC is one of the world's largest banks, which also operates in the UAE. It provides mortgages for foreigners who earn at least 15,000 dirhams per month (approx. 4,080 US dollars). Mortgage rates here start from 2.39%.
Mashreq is the oldest privately owned bank in the UAE with branches in Europe and the USA. It also imposes a 15,000 dirhams minimum wage requirement for expats. The minimum interest rate in this bank is 2.49%.
Emirates NBD is the second largest bank in the UAE. The mortgage rate for foreigners in this bank is 2.49%.
Documents Required for Mortgage Loan in Dubai
- Copy of international passport.
- Copy of resident visa (if available).
- Copy of Emirates ID.
- Documents confirming borrower’s solvency (bank statements, salary statements, payslips).
- Confirmation of legal origin of funds.
- Contract for the sale of real estate.
- Certificate of ownership.
All documents must be translated into either English or Arabic.
Getting a Mortgage in Dubai Procedure
Step 1. Choosing a Bank to Apply for a Mortgage
1–2 weeks
The buyer examines the offers of local and international banks. After the foreigner has decided on the choice, the chosen bank then conducts an internal check to see if the client fits the basic requirements.
Step 2. Selecting a Property and Collecting Required Documents
2–6 weeks
If the bank has approved a foreigner as a borrower, the latter is given two months to find a property.
Once the property has been selected and booked, the buyer signs a contract of sale, registers the transaction with the Dubai Land Department and receives a certificate of ownership. After that, the buyer brings all those documents to the bank.
Step 3. Signing a Contract
1 day
The borrower negotiates the terms of the contract with the bank and signs it.
Step 4. Making a Down Payment
1 day
The buyer makes a down payment on the mortgage. At this stage, it is recommended to purchase homeowners insurance.
The borrower then makes mortgage payments as scheduled.
FAQ
Even non-residents can take out a loan in the UAE. To do this, one needs to come to the selected bank with the following documents: a copy of international passport, a bank statement, and a resident visa and Emirates ID (if available).
Mortgages can only be granted for real estate located in Dubai's freehold zones. These zones include areas such as Dubai Marina, Downtown, Jumeirah and many others.
Mortgage rates are influenced by the level of economic development in the country, inflation, the government's monetary policy, and real estate demand.
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