This diversified real estate market is what attracts many local as well as international investors owing to the lower rates coupled with relatively low interest. Not many would deny that non-residents have a ‘mortgage in Dubai for non-residents’ avenue for acquiring property within the metropolis without splurging their cash.

Our guide below has all the details you will need to learn who is eligible for a non-resident house loans in Dubai and how they work.

Is It Easy To Get A Mortgage In Dubai?

Yes, definitely foreigners can avail a mortgage if they want to purchase an investment property in Dubai. Being a non-resident investor in Dubai would benefit one with numerous advantages and would have more favorable loan sizes and greater flexibility.

It should be added that compared to UAE nationals and expats, non-resident foreign investors have fewer options concerning real estate loans. Also, before moving further ahead, it is critical to understand what types of mortgages exist for the purchase of Dubai real estate.

Which Foreign Investors Can Obtain A Home Mortgage In Dubai?

Qualify before applying for a non-resident mortgage in Dubai. Remember that these requirements are just suggestions, and they might differ at one of the UAE banks.

• For a non-resident house loan in Dubai, you may be required to be a citizen of a country on the list of the bank.
• A non-resident mortgage requires that you be either self-employed or salaried.
• Many banks in Dubai have age restrictions, as well, for those wanting to apply for a non-resident mortgage. For example, ADCB requires a non-resident applicant seeking a home loan to be more than 21 years of age.
• On top of this, you will also have to fulfill the minimum monthly income requirements that the bank puts forth for non-residents and UAE expats. Besides, post tax deduction, you will have to meet the minimum income criteria. For instance, in the case of ADCB, the expatriate residents can get their mortgages if they generate at least AED 15,000 per month post-tax.
• Furthermore, some of the banks have a list of approved developers and projects. In respect to non-resident mortgage lending in Dubai, inform them that your home is featured on this list.

What is needed in terms of documents for mortgages for non-residents of the United Arab Emirates?

For a non-resident, specific documents must be submitted when applying for mortgages. Note that you may need more depending on the property you are buying and circumstances of the sale.
A number of paperwork may include the following for a non-resident applicant for home loans in Dubai:

• Passport as proof of identification – valid
• Bank statements – as evidence of funds; for the last three to six months

When applying for a property loan in Dubai for non-residents, you will be asked to provide more documents such as:

• Tax returns, if any
• Payslips or salary certificates (if you are an employee with a salary)
• Trade license and financial statements that have been audited (if you work for yourself)
• Any loans you are currently holding

Dubai Home Loans For Non-Residents Features

The following are the features of home loans that are available to non-residents of Dubai:
Maximum Loan Amount:

This amount will vary with the bank and the financial situation. For instance, ADCB finances up to AED 15 million, while Mashreq finances up to AED 10 million.

LTV ratios:

According to the UAE Mortgage Law, a down payment of at least 20% of the purchase price is required if a property is worth up to AED 5 million from non-UAE nationals.

Interest rates:

Some banks in the United Arab Emirates provide a choice of interest rates. For more, read flat vs. lower interest rates. You will be charged a little more than foreign nationals living in Dubai pay for interest, though.

Loan term:

Based on the profiles, banks can extend a short loan term for non-resident investors even though a maximum for permanent expats is 25 years.

Which are the UAE banks providing home loans for non-residents?

The following banks offer house loans to non-residents of the UAE:

Dubai Islamic Bank
HSBC
Abu Dhabi Islamic Bank
First Abu Dhabi Bank
Emirates Islamic Bank
Ajman Bank
Standard Chartered
Abu Dhabi Commercial Bank

Please note that to avail a mortgage in Dubai for a non-resident, such applicants will have to meet eligibility criteria for such banks. With little research and due diligence on your part, you’ll be able to find the best available mortgage loan in Dubai for you.

Finally

With the mortgage options for foreign investors by Dubai, it is always possible to acquire property in one of the world’s most active real estate markets. Foreign investors can easily make use of favourable loan amounts, a wide-ranging real estate possibility, and easily accessible financing through top UAE banks despite a certain degree of eligibility rules and restrictions pertaining to UAE residents. Knowing the loan process, documentation required, and conditions by the banks shall enable the investor to make good decisions on his or her potential in Dubai’s real estate.

FAQs

Do expat individuals in Dubai qualify for a mortgage?

Yes, both foreign investors and expat residents can get financing from a mortgage but with lower LTV percentages compared to that of a UAE citizen.

Is it easy to purchase a mortgage in Dubai?

Applying for a mortgage loan in Dubai is not hard, if you qualify the criteria set by the lender. For the surprise of budget, I strongly advise you to get mortgage pre-approval before looking for a home.

Do I have a mortgage loan already? Can I exit the UAE?

Yes, with outstanding mortgage liability you are allowed to leave the United Arab Emirates. As soon as you notify your bank, they would most probably convert your mortgage’s terms and its interest rate into a non-resident mortgage. Sometimes the bank would ask for the full settlement of the mortgage before you leave the United Arab Emirates. In such a scenario, you may be able to sell the house or refinance through a different lender, but there may be an early settlement cost imposed on you.