Mortgages in the United Arab Emirates (UAE)
Few banks in the UAE grant mortgage loans
Banks provide foreign nationals with loans to buy commissioned real estate from developers in certain districts of Dubai and require the submission of property ownership certificates. Approved districts include Downtown Dubai, Dubai Marina, Palm Jumeirah and other locations popular among investors.
|Maximum LTV ratio|
|Maximum loan amount|
|Rates||From 5% per annum(in AED)|
|Loan term||Up to 25 years|
|Minimum age of borrower||21|
|Maximum age of borrowerby the end of the loan term|
Mortgage applications in the UAE require the following documents:
- Proof of identity:
- residence visa (if the bank requests a residence permit)
- Proof of income:
- for employees: salary statement, pay slips for three months, bank statements for the last three or six months, letter of recommendation from another bank, credit record history.
- for entrepreneurs: trade license, founders agreement, bank statements for the last six months.
Some banks have a minimum income requirement. For instance, borrowers must have a monthly salary of at least AED 15,000 to get a mortgage loan from Mashreq Bank, and of AED 40,000 to get a mortgage loan from Noor Bank.
- Property documents:
- sales contract
- property ownership certificate
- proof of prepayment.
The loan application approval process usually take about two weeks.
Borrowers also pay appraisal, mortgage arrangement and insurance fees.
|Property appraisaland Due Diligence||About AED 3,000|
|Property insurance||0.05% of the propertyvalue per annum|
|0.4% of the loanamount|
|Mortgage arrangement fee||Up to 1.5% ofthe loan amount|
|Early repayment penalty|