Dubai is considered one of the most lucrative destinations for real-estate investments. People from different parts of the world are willing to invest in Dubai real estate due to quality of life and relaxed taxation policies. To cater to the increasing interest in real estate investment, different banks in the UAE offer mortgage loans to non-resident investors. The mortgage aids investors in purchasing and investing in a wide range of properties.
This guide covers all you need to know about mortgage in Dubai for non-resident, its benefits and conditions.
Mortgage for Non-Residents in Dubai
Non-resident investors are provided with mortgage loans by the banks in the UAE to purchase properties for sale in Dubai. A number of benefits are provided to the non-residents including high loan amounts, low-interest rates and flexible home loans.
However, overseas investors can only purchase properties located in the freehold areas of Dubai. Also, the investors will not be able to leverage all the additional benefits provided to the UAE residents.
Features and Benefits
Here are some of the core features of the non-resident mortgages in Dubai. The following features can vary from bank to bank.
Tenure: The maximum tenure of returning a mortgage can be 25 years. However, the lender must be under the age of 65 years (salaried) and 70 years(self-employed) by the end of tenure.
Amount: The amount of the loan depends on multiple factors including the financial condition of the investor. For a rough estimation, some banks can provide mortgages up to AED 20 million.
Interest Rates: The interest rate also varies from bank to bank. You can expect to pay around 4.5% to 6.5% interest rate. The rate can be fixed or variable as per the bank’s policy.
LTV (Loan to Value Ratio): Non-residents are required to pay 30% of the total amount if purchasing is worth more than AED 5 million. However, some banks can finance up to 50%.
Types: Two major types of loans are provided to non-resident investors: conventional loans and Islamic Financing loans.
Income Proof: Overseas investors are not required to submit any sort of income proof in the UAE.
Eligibility Criteria
The following eligibility criteria are drafted on the basis of general rules, it can vary as per your bank.
Citizenship: Some banks in the UAE will only provide mortgages to the residents of limited countries mentioned in their list. Make sure to check the list prior to applying for non-residence mortgage loan in Dubai.
Work Status: The investor must be salaried or self-employed for applying for a mortgage loan. Also, you will have to submit your 3 months bank statements to prove your income.
Age Limit: Applicants must fall within the age-limited criteria mentioned in the bank’s conditions.
Minimum Income Limit: All the applicants are required to meet the minimum monthly income requirement after tax deductions.
Approved Properties: Few banks have a list of approved builders and developers and these banks only provide mortgages for the properties constructed by these individuals.
Documents Required
Here is the list of documents that will be required while applying for mortgages without residency in Dubai.
- Proof of funds (3 to 6 months of bank statements)
- Valid passport
- Salaried individuals can be asked to submit pay slips
- Self-employed individuals can be asked to submit financial statements and trade license
- Details or pre-existing loans
Banks Providing Mortgage Loans for Non-Resident in UAE
Different banks in Dubai provide mortgages for non-resident on their own terms and have their own criteria that every applicant must meet.
- Dubai Islamic Bank
- HSBC
- Abu Dhabi Islamic Bank
- First Abu Dhabi Bank
- Emirates Islamic Bank
- Ajman Bank
- Standard Chartered
- Abu Dhabi Commercial Bank
FAQs
Can expats apply for a mortgage loan in Dubai?
Yes, expats can apply for a mortgage loan in Dubai from the banks operating in the UAE. However, there are some restrictions and eligibility criteria that applicants must meet for loan approval.
How much downpayment do I have to pay to buy a property in Dubai
The overseas investors are required to pay 20% to 30% of the total property value. This percentage is dependent upon the bank’s policy and types of property (commercial, residential or mixed used).
Can I take two mortgages at the same time as an overseas investor?
Yes, you can borrow two mortgages at the same time, but there will be a few restrictions and conditions for the second mortgage.
These were all the legalities and procedures involved in acquiring a mortgage in Dubai for non-residents. The convenient process and additional benefits provided by the banks enable investors to purchase villa/apartments for sale in Dubai.
Stay tuned to UAE’s top property blog for more information on mortgages in Dubai.
