Demand for mortgages in Dubai for non-residents is growing thanks to low-interest rates and favorable loan terms. This attracts foreign investors. How to choose the right offer?In this article, we will detail everything you need to know before applying for a mortgage, including requirements, benefits, application stages, and tips for successful approval.
Features of mortgages for non-residents in Dubai (UAE)
There are specific conditions for expats when buying property in the UAE. For example, foreigners can only purchase property in free zones with a mortgage.
To get a mortgage in Dubai:
- The applicant must be between 21 and 65 years old, but some banks may require a minimum age of 25.
- Proof of income (job certificate, tax returns) and bank statements for the last 3–6 months are required.
- Banks check the borrower’s credit history in their country of residence and may request a credit report from the UAE.
The down payment for non-residents in the UAE is 25% of the property’s value if it costs less than 5 million dirhams, and 35% if the price is higher than 5 million. These conditions apply to first-time purchases. For repeat purchases or investments, the down payment increases to 40%.
“Currently, about 20% of all real estate transactions involve mortgages, while 80% of buyers pay in cash, without bank involvement.
In the USA, the situation is the opposite — 80% of transactions are made using mortgage lending, which once led to a mortgage crisis, while 20% of transactions are done in cash, without mortgages and banks,” says Livrichy Client Manager Yaroslava Surgan.
Loan terms in the UAE range from 5 to 25 years, and for commercial property — up to 15 years. The duration depends on the borrower’s age, financial situation, and bank conditions.
Benefits of a mortgage in Dubai for non-residents
Mortgages in Dubai offer many advantages that make the market attractive for foreign investors:
- Interest rates for foreigners on mortgage loans in Dubai range from 3% to 5% per year. These rates are lower than in many other countries.
- Dubai banks offer flexible loan conditions, including the possibility of early repayment without penalties.
- There are no property taxes in the UAE, which reduces the overall costs of buying and owning property.
- When purchasing property in Dubai, you can obtain a residency visa.
Key stages of getting a mortgage in Dubai
The process of getting a mortgage in Dubai consists of six steps:
- Before contacting the bank, choose the type of property — residential or commercial — and determine its location.
- Compare rates from different banks and choose the appropriate mortgage: fixed or variable, depending on your financial goals.
- Gather documents: passport, visa, proof of income, bank statements, and other financial documents.
- The bank will assess the value of the selected property to determine the loan amount.
- After reviewing all documents and assessing the property, the bank will issue preliminary loan approval.
- Sign the agreement and receive the loan.
Popular UAE banks offering mortgages to non-residents
Non-residents can apply for a loan at the following UAE banks:
- Emirates NBD — a major bank in the UAE with fixed and variable-rate mortgages.
- HSBC — an international bank with high service standards, flexible terms, and competitive rates.
- Dubai Islamic Bank — an Islamic bank offering Sharia-compliant mortgage loans.
Main requirements for non-residents to obtain a mortgage in Dubai
To obtain a mortgage, non-residents must meet strict bank conditions, including:
- Provide proof of income, tax returns, or other financial documents confirming your ability to service the loan.
- Ensure a positive credit history in your country of residence.
- Mortgages are only available for properties in Dubai that meet the bank’s requirements.
“Mortgages can only be arranged for ready properties, and the process starts after receiving a completion certificate. Even if the keys to the apartment have not yet been handed over, having this document allows you to start applying for a mortgage.
The bank will assess the property and may offer you either the minimum amount or more than you expected, depending on your income, credit history, and financial indicators. To get the best offer, it’s important to approach different banks and compare their terms,” says Livrichy Client Manager Yaroslava Surgan.
Mortgage guests: fees, insurance, taxes
When applying for a mortgage in Dubai, consider additional costs:
- Bank fees usually range from 0.5% to 1% of the loan amount.
- Property and life insurance are mandatory. Property insurance costs 0.1%-0.5% of the property’s value, and life insurance is 0.3%-0.7% of the loan amount.
- The registration fee for purchasing property is 4% of the value, plus additional administrative costs, which may vary depending on the type and cost of the property.
Is it worth taking a mortgage in Dubai for non-residents? — expert advice
Taking a mortgage in Dubai can be profitable due to low-interest rates and flexible conditions. Before making a decision, Livrichy experts recommend:
- Consult financial and legal advisors for a full understanding of all aspects of the mortgage.
- Study the terms of different banks and choose the most favorable offer.
- Contact a real estate agent to get up-to-date and best mortgage options.
Useful tips for non-residents applying for a mortgage in Dubai
To increase your chances of getting a mortgage in Dubai, provide complete financial reports and demonstrate stable income.
When choosing the right bank and loan conditions, non-residents should compare offers from several banks and consider their reputation. It’s also important to assess the bank’s experience with international clients.
A mortgage in Dubai for non-residents is an attractive investment opportunity, but it also has its challenges.
With Livrichy agents, the process will become easy and simple. Our team knows everything about the real estate market in the UAE and will help you choose the best option.
