Buying a new home can be an exciting yet challenging process. You can buy a property in Dubai with either cash or on a mortgage. However, cash investment can be more cost-effective; but, securing a mortgage in Dubai allows you greater flexibility in managing finances. If you are planning to secure a mortgage in Dubai, here are some tips you should consider before getting it.
Who Can Get Mortgage in Dubai
The first thing you must calculate is if you are meeting the criteria for getting a mortgage in Dubai. Following are the requirements to apply for a mortgage loan in Dubai:
- UAE residents or national
- Aged between 21-year to 65-year
- Monthly income should be AED 15,000 if salaried and AED 25,000 if self-employed
Required Documents to Apply for Mortgage in Dubai
Anyone who wants to apply for a mortgage must know what documents are required to apply for it. The following list of documents is required to secure a home mortgage in Dubai
- Original/copy of Emirates ID
- A copy of the visa and passport
- Proof of employment or salary certificate
- Bank statement and payslips for the last six months
- DEWA bill, tenancy contract or any other proof of residence
- Last statements of credit card
Moreover, if you are looking for a non-resident mortgage in Dubai, you only need the following documents:
- A copy of a passport or personal identification documents
- Evidence of legal residence in Dubai
- Bank statements or proof of your salary
- Documents that prove the affordability of the mortgage
Please note that the requirement may slightly vary from one bank to another.
Process of Getting Mortgage in Dubai
The mortgage process in Dubai can be divided into the following steps:
- Decide if you want to hire a broker to work on your behalf or directly approach a bank to explore available mortgage deals.
- Choose a mortgage considering your needs and find lawyers who can help you with safe transactions.
- Handover the required document to get a mortgage pre-approval in Dubai then your bank will issue a confirmation letter of what they will lend you.
- Find a property you wish to purchase within 60 to 90 days.
- Finalise your purchase and pay the deposit to secure the sale and decide on a completion date for a purchase transaction.
- Provide additional documents if needed to secure a mortgage.
List of Banks Providing Mortgage in Dubai
Following are some of the top-notch banks in Dubai that offer the best mortgage loan:
ADIB Bank
The profit rate of Abu Dhabi Islamic Bank is as low as 3.57% per annum. It also finances up to 80% of the property value. Plus, there are no early settlement fees when selling a property.
- Address: Arenco Building, Near the Main Entrance of DIC, Sheikh Zayed Road, Dubai
- Contact: 800 2828
- Timings: Saturday to Thursday: -8:00 am till 02:00 pm
Emirates NBD Bank
NBD Bank finances up to 85% of the property along with a pre-approval facility. The loan tenure in Emirates NBD is up to 25 years. The processing fee is 1% of the loan amount which is non-refundable, while the Current Applicable Consumer Base Rate is 5.75%.
- Address: Emirates NBD Bank, Deira, Dubai
- Contact: (+971) 600 54 0040
- Timings: Saturday to Thursday: -8:00 am till 04:00 pm
HSBC Bank
If you are looking for a trusted bank for a mortgage in Dubai, then HSBC is the one. Here, the competitive interest rates start from 2.79% for a New Home Loan policy, while no salary transfer is required. The banks also offer Fixed Interest Rate Home Loan and Green Home Loan Policy. In Green Home Loan Policy, the bank offers a 0.25% discount on the applicable interest rate.
- Address: Ground floor, HSBC Tower, Downtown, Dubai
- Contact: 800 HOUSE (800 46873)
- Timings: Live Chat is available from Monday to Friday: 09:00 am till 10:00 pm
How Does a Mortgage Work in Dubai
Now you must be thinking about how much mortgage I can get in Dubai. Well, as per the Dubai mortgage law, expect can secure a mortgage for up to 80% of the property value. Therefore, you must manage a 20% amount as an initial deposit to purchase a property worth less than AED 5 million in Dubai.
It is important to note here that the afore-mentioned deposits are only valid on first-time mortgages. If you have already taken a mortgage or have a mortgaged property, then the minimum down payment will be up to 35% for UAE nationals and 40% for expats.
As far as duration is concerned, it takes around ten working days to get a final mortgage offer letter. It also includes the time you take to secure a pre-approval on the application.
Here we conclude all about the things you should know before securing a mortgage in Dubai. Once you know all about home loans and the procedure, it’s time to decide where to buy a property in Dubai. You can find several investment options in the city such as:
- Houses for sale in Dubai
- Apartments for sale in Dubai
- Lands for sale in Dubai
- Commercial properties for sale in Dubai
Stay tuned to the UAE’s top property blog to know more about the country’s real estate market.
