Mortgage allows non-resident investors access to Dubai’s real estate market while offering significant financial flexibility. From providing opportunities to diversify portfolios to acquiring high-end properties, the mortgage assists non-resident investors in multiple ways. Understanding the mortgage application process, required documents and the eligibility criteria helps non-resident investors to navigate through the process hassle-free.
Mortgage for Non-Residents in Dubai
The mortgage for non-resident investors in Dubai is regulated by the guidelines provided by the Central Bank of the UAE. According to the regulations, non-residents can get:
- For the first property, up to 80% finance if the property is valued under AED 5 million and up to 70% if the property is valued more than AED 5 million.
- When buying second or investment properties, non-residents can get a maximum of 60% finance, regardless of the property value.
- For off-plan properties for sale in Dubai, the maximum finance is 50%.
- The maximum loan term is 25 years, varying with the age of the mortgagor at the time of loan application.
- The maximum financing amount for non-residents’ home loan in Dubai is up to 7 years of annual income.
- Non-residents are required to pay a minimum of 20% down payment.
Eligibility Criteria
The eligibility criteria for a non-resident home loan in Dubai vary from bank to bank. Generally, applicants are required to meet the following criteria:
- A minimum salary of AED 15,000
- The applicant’s age should be between 21 and 65 years
- Must have a valid income proof
Documents Required
The Dubai mortgage for overseas investors requires the following documents:
- Passport and Emirates ID
- Salary certificate or bank statement for the last 6 months
- For a self-employed applicant, a Memorandum of Association (MOA) and a trade licence are required
In case of a co-borrower, the following documents are also required:
- Co-borrower’s passport and Emirates ID
- Income documents (if applicable)
- Pay slip and bank statements
- If the co-borrower is a company owner, an MOA and a trade license are required
Fees for Non-resident Home Loans in Dubai
The overseas investors applying for a mortgage in Dubai are subject to the following charges:
| Description | Fees |
| Loan processing fee | 1.05% of the total loan amount |
| Early settlement | 1.05% of the outstanding principal amount or AED 10,500, whichever is lower |
| Partial settlement fee | 1.05% of the outstanding principal amount or AED 10,500, whichever is lower |
| Late payment fee | AED 420 |
| Valuation charges | AED 3,150 for completed property and AED 21,000 for self-construction |
Disclaimer: Please remember that the eligibility criteria, fees and documents required mentioned above are indicative and may vary depending on the bank, lender or regulatory changes for non-resident investors.
FAQs
What is the maximum LTV for non-resident investors in Dubai?
The maximum LTV for non-resident investors when buying a first property in Dubai is 80% for property valued less than AED 5 million and 70% for property valued more than AED 5 million. For a second or investment property, LTV is 60%.
Which UAE banks provide home loans for foreigners?
Several banks in the UAE offer home loans for non-residents, including Emirates NDB, HSBC, Dubai Islamic Bank and Mashreq Private Banking, among others.
Is there a minimum salary requirement for overseas investors to get a Dubai mortgage?
Yes, a minimum salary of AED 15,000 is required for non-residents to apply for a mortgage in Dubai.
Can non-residents get mortgages for off-plan properties in Dubai?
Yes, non-residents can get up to 50% finance of the total off-plan property value.
What is the maximum age limit for non-residents applying for a loan?
The maximum age for non-residents applying for a mortgage varies from bank to bank; usually between 60 and 65 years.
These were all the legalities and procedures involved when applying for mortgage loans for non-residents in Dubai. The transparent guidelines, straightforward process and added benefits attract foreign investors, providing ample opportunities to buy properties in Dubai and avail of a growing real estate market.
Stay tuned to dubizzle’s property blog to learn about mandatory life insurance for UAE mortgages.
