DUBAI PROPERTY MORTGAGE GUIDE STEP-BY-STEP FOR HOME FINANCING IN THE UAE

Before applying, banks assess your eligibility based on income, nationality, residency status, existing liabilities, and credit history. Typically, your total monthly debt repayments—including the new mortgage—should not exceed 50% of your income.

The UAE Central Bank requires:
• Residents: Minimum 20% down payment for properties under AED 5
million (30% for second homes)
• Non-residents: Minimum 50% down payment regardless of property
value
These percentages exclude additional costs like DLD fees and bank
charges.

Before you start viewing properties, it’s advisable to get a mortgage preapproval letter from your chosen bank. This document confirms your borrowing capacity and signals to sellers and agents that you are a serious buyer. Pre-approvals typically remain valid for 60–90 days.

Banks in the UAE offer several mortgage structures:
• Fixed-rate mortgage (1–5 years fixed, then variable)
• Variable-rate mortgage (tied to EIBOR or bank’s base rate)
• Offset or hybrid options for more flexibility
Our in-house advisors can help you compare terms, interest rates, and
repayment options tailored to your goals.

To proceed with your mortgage application, banks generally require:
• Valid passport (and visa for residents)
• Emirates ID (for residents)
• Salary certificate or income proof
• Bank statements (last 6 months)
• Credit report
• MOU and property details (at later stage)

Once your chosen property is confirmed, the bank will conduct a valuation. The loan offer is then finalized based on the valuation amount, not necessarily the sale price. The bank may finance up to 80% of the valuation.

Upon acceptance of the final offer, the mortgage is registered with the Dubai Land Department, and your property transfer takes place at the DLD trustee office. Associated mortgage registration fees are typically 0.25% of the loan amount plus admin fees.