How to Get a Mortgage in Dubai for Non-Residents. A Complete Guide

Buying an apartment in Dubai and selling it in 2–3 years at 100% profit. Is that not the dream of any investor? With the development of the mortgage lending market, this has become possible even for a foreign buyer. We have collected all the information about getting a mortgage on real estate in Dubai and now will tell you how to get such a loan as a foreigner. 

Dubai’s real estate market can now be called truly “hot,” and it is not about the hot summer season but about the number of transactions, which has increased almost threefold over the past year. Apartments and flats, villas and townhouses — all this has turned into “concrete gold,” the cost of which is constantly increasing. 

But what if a foreign buyer only has half of the amount needed to buy an apartment? Of course, take a mortgage. So, let’s look into what a foreigner getting a mortgage in Dubai for non-residents.

Mortgage Requirements in Dubai

Getting a mortgage in Dubai differs for residents and non-residents. Local residents find it easier to get a loan, and the requirements for them are less strict. For example, banks require a smaller down payment from locals and are more willing to offer loans to older individuals.

General mortgage requirements in Dubai:

• Legal status. If the buyer has the status of a resident in the UAE, they can apply for a larger mortgage — about 80% of the value of the property. If the borrower is not a resident of the UAE, the amount of mortgage lending may not exceed 50%. 
• Age. The next important criterion is the age of the borrower — it can be a person aged 25 to 65 years. At the same time, the maximum term of mortgage lending is 25 years, but the closer the borrower is to retirement age, the shorter the mortgage period will be. An important nuance is that the last mortgage payment must happen before the applicant’s retirement age.
• Income level. Another equally important condition is that the amount of monthly mortgage payments should not exceed 50% of the borrower’s income. At the same time, it takes into account not only payments on this mortgage but also all active loans (if any). An important nuance: after all payments, the borrower must have funds in the amount of $900 for each family member.
• Employment in the UAE. This condition is not necessary, but it will be a great bonus if you want to get an expat mortgage in Dubai. Having your own company in the UAE also fulfills this condition.
• Having property in the UAE. This condition is also optional, but will be another great bonus when requesting a mortgage.

Documents Required to Get a Mortgage in Dubai

Documents for mortgage loans in Dubai vary depending on residency status. UAE residents must provide an Emirates ID and proof of income from employment in the UAE or a tax declaration if they are business owners. Non-residents, on the other hand, need to submit documents proving their income and financial stability in their country of residence.

Documents for a property loan in Dubai for residents:

• Copy of passport and visa. To confirm identity and resident status.
• Emirates ID. The mandatory personal identification document for all UAE residents.
• Proof of income. A letter from the employer or tax returns (for business owners) confirming current income.
• Proof of residence. A rental agreement or utility bills (for example, from DEWA).
• Bank statements. Statements from the last 3–6 months are required to assess financial transactions and income stability.
• Credit reports. Information on current loans, if any, for assessing overall debt load.

Documents for a Dubai home loan for non-residents:

• Copy of international passport. To confirm identity.
• Bank statements. Also for a period of 3–6 months.
• Proof of income. A letter from the employer or tax declaration showing monthly income.
• Proof of income sources. Required to assess the legality of income, especially if it comes from abroad.
• Sale and purchase agreement. Needed after the property is selected for further transaction registration.

Additional documents for Dubai mortgage:

• Certificate of ownership (if there is property in the UAE). May be required to confirm assets.
• Property purchase agreement. Required once the property is chosen.
• Documents for existing loans. Confirmation of any obligations to banks.
• Insurance. For some banks, having insurance is mandatory, especially for long-term loans. Insurance may cover both the borrower's life and the property being financed.

In some cases, Dubai mortgages for non-residents are available only after providing credit reports from their country of residence. This allows banks to assess the borrower's financial discipline. If the associated risks are high, banks may require a guarantor or confirmation of additional income sources, such as rental income from other properties or investments.

Home Loan Rates and Banks that Provide Them

Both local and European banks operate in the UAE — each of them has its own mortgage offers for foreigners. It should be borne in mind that any bank will conduct a preliminary check for compliance with all requirements for the borrower. It is important to keep in mind that Dubai banks will check your solvency and business reputation especially carefully; assets, income and other credit obligations will be checked — any unreliable borrowers will be weeded out at this stage.

Bid Amount:

• The average mortgage rate in Dubai for real estate starts at 2.5% (but, for non-residents, banks are more likely to offer rates from 3.5%).
• The loan term is up to 25 years.
• The loan amount is up to 80% of the cost of the property.

Like almost everywhere else in the world, mortgage rates in Dubai can be fixed or adjustable. 

Fixed rates are determined on the basis of the refinancing rate (it is determined by the Central Bank) and include repayment of the debt and interest on the loan. Such a loan cannot be changed throughout the repayment period. If the borrower wants to repay the mortgage ahead of schedule, as a rule, banks charge a fine of about $3000.

An adjustable rate means that interest on the loan is calculated from the remaining amount of debt — each month interest payments will be reduced. However, the adjustable rate can change right at the time of payment — everything depends on the state of the real estate market, inflation and other economic factors. As a rule, the adjustable rate is applied by banks for short-term loans — for a period of up to 5 years. 

Mortgage in Dubai for foreigners and residents, interest rate of bank loans for 2024:

You can find out in advance whether it’s possible to obtain a home loan in Dubai for a specific property and whether the loan amount will be sufficient to cover its purchase. Many banks and mortgage brokers offer online calculators that help you estimate the potential loan amount and monthly payments. Additionally, their websites often list the types of properties eligible for financing. For instance, some banks only offer mortgages for ready-to-move-in properties and do not provide loans for off-plan developments.

Mortgage Companies

In addition to traditional banks, there are also specialized mortgage companies in Dubai that offer financing solutions for property buyers. These companies focus specifically on providing mortgages, and they often offer a range of flexible products tailored to different types of borrowers, including residents, non-residents, and investors. Unlike banks, which provide a broad array of financial services, mortgage companies are dedicated to home financing and may sometimes offer more competitive home loan rates in Dubai or unique lending options.

Notable mortgage companies in Dubai include Tamweel and Amlak Finance, both of which provide Islamic mortgage solutions (Sharia-compliant financing). These companies cater to buyers looking for interest-free mortgage options in line with Islamic principles. Additionally, international mortgage brokers and agencies operate in Dubai, assisting clients in finding the most suitable mortgage deals, whether from banks or mortgage companies. By working with these specialized lenders or brokers, buyers can explore a wider range of financing options, especially if they seek more personalized services or need assistance navigating the complexities of property financing in Dubai.

Mortgage Process in Dubai

Before purchasing a property with a home mortgage in Dubai, you must apply for pre-approval with your chosen bank. The bank assesses the applicant's creditworthiness and confirms the loan amount that can be granted for a mortgage in Dubai. You may choose to work with an agency, which can assist in gathering all the necessary documents and submitting them to the bank. While this saves time, it also involves additional commission fees. So, the first step is to find a bank offering the best mortgage rates in Dubai. You can browse bank websites or seek assistance from an agency that can help you find the best options

Stages of the mortgage process:

• Property selection. After receiving pre-approval, the next step is to select a property in Dubai that fits the budget. Agencies typically assist in this process, based on the client's budget and preferences. They ensure the legal security of the transaction and negotiate the terms with the seller on the buyer's behalf.
• Property valuation. Banks require a valuation of the chosen property since they base the mortgage on the property's appraised value (which is often lower than the market value). The applicant must contact accredited appraisers or an agency for this purpose. Agencies usually have a database of reliable specialists, including those regularly working with banks.
• Final mortgage approval in Dubai. Final approval conditions include the submission of a complete set of documents to the bank, including the sale agreement and the appraisal report. If the process is handled through an agency, the applicant's presence at this stage is not necessary.
• Closing the deal and signing the contract. After final approval, the mortgage contract must be signed with the bank. The transaction also needs to be registered with the Dubai Land Department (DLD). When working through an agency, they will arrange the signing of all documents, including the mortgage contract and registration papers with the DLD, and assist in paying taxes and fees.

After the transaction in the Land Department of the city, the buyer will be issued a certificate, the original of which will be kept in the bank until the loan is fully repaid. The borrower will have a certified copy in his or her hands.

Mortgage Fees and Other Costs

Mortgage costs in Dubai vary significantly depending on the bank's conditions, the type of property, and other factors, but the main categories remain unchanged. For example, the down payment. UAE residents are required to pay at least 20% of the property value (if the property costs less than 5 million AED / $1,361,400) or 30% (if the property value exceeds 5 million AED / $1,361,400). For non-residents, this amount is higher, ranging from 25–40%, making it the largest single payment the borrower faces. In addition to this, the following payments are required:

• Property transfer fee. When purchasing property in Dubai, a 4% registration fee is required, calculated based on the property value. 
• Mortgage registration fee. In addition to the property transfer fee, the mortgage contract must be registered with the Dubai Land Department. The registration fee is 0.25% of the mortgage amount, along with an additional administrative fee of 290 AED ($80). 
• Property valuation. Banks often require an independent property valuation to confirm its market value. The cost of the valuation typically ranges between 2500–3500 AED ($680–$955), depending on the appraiser and property type. 
• Value Added Tax (VAT). The UAE applies a 5% VAT on most services, such as legal, agency, and insurance services. For example, VAT is charged for appraisal and legal services. 
• Real estate agent's commission. If the purchase is made through a real estate agent, their services must be paid for. The standard real estate commission in the UAE is 2% of the property value. 
• Insurance. Banks require borrowers to have mandatory insurance, which usually costs 0.25–0.50% of the loan amount annually, depending on the loan size and the borrower's age.

Additional fees and charges: 

• Mortgage arrangement fee. Most banks charge a mortgage arrangement fee, which is usually 1% of the loan amount but may vary depending on the bank.
• Legal fees. Legal support may be required when signing the purchase contract and processing the mortgage. These services typically start from 5000 AED ($1360), depending on the complexity of the transaction and the lawyer's expertise.
• Bank administrative fees. Some banks charge additional administrative fees for mortgage services and account management. These fees can range from 500 to 2000 dirhams ($136–$545), depending on the bank and the services provided.
• Early settlement fee. If the mortgage is repaid early, the bank may charge a fee, usually between 1–3% of the remaining loan amount. However, some banks offer reduced or waived fees depending on the length of the loan agreement.

One of the less obvious expenses is the currency conversion and transfer fees. These are charged when the borrower is a non-resident of the UAE and is financing the transaction from abroad. The size of such fees depends on the sending bank and the receiving bank. It is recommended to study the transfer and conversion rates in advance and factor the difference into the total amount.