click to enable zoom
We didn't find any results
open map
View Roadmap Satellite Hybrid Terrain My Location Fullscreen Prev Next

AED 0 to AED 100,000,000

More Search Options

AED 0 to AED 100,000,000

More Search Options
We found 0 results. View results
Your search results


Posted by webadmin on May 11, 2021

In Dubai purchases through cash are common; mortgages are growing and include a big portion of recent real estate investments. Central Bank of UAE has reported that, 20% of real estate investments in 2021 include mortgages (for real estate under AED 10 million).

It is easy for non-resident foreign investors, expat residents and UAE nationals to secure home loans in Dubai. Banks usually need a proof of income and valid ID. Within 3-4 days pre-approvals can be acquired with an added week for the final mortgage letter.

Before starting to search property, candidates should seek pre-approvals to conclude if there are any boundaries on their budget, and surely before depositing.

Home loan is offered by multiple main banks in Dubai, making candidates spoiled for choice. Term can differ depending on each bank and it is essential to be familiar with mortgage because they are changed frequently based on EIBOR (Emirates Interbank Offered Rate). In accordance with any changes the US Federal Reserve due to its interest rates will change local rates in Dubai because UAE Dirham is hooked to the US dollar.

As such, homeowners get themselves pack in fluctuating mortgage rate and attractive property prices and they will look for a best way to structure their mortgage. To determine the right loan and rates for their desires candidates can also look for the services of mortgage advisors.

Whether the candidate works directly with a bank or through a mortgage advisor, negotiation is important because in Dubai home loans are prepared on a case-by-case basis.

Eligibility for mortgages

To get eligible for mortgages, UAE nationals, foreigners’ and residents must have a good credit rating and show stable income. Salary of minimum AED 15,000 for foreigners and AED 10,000 for UAE Nationals is required. Some banks decide the eligibility based on the list of approved employers.

According to local debt burden rule, the amount that should be paid monthly should not exceed 50% of the applicant’s monthly income. This amount covers all debt that must be paid, from auto loans to home loans, personal loans, and credit card debt.

In simple words, a candidate who does not have any debt can get up to 50% their monthly payment.

Banks choose to give loans to residents because they have more ways to get back their money. Due to this, limited mortgage options are available for non-resident foreign investors. Eligibility to get home loans for non-resident depends on banks as well as different criteria such as whether the candidate already has a property or their nationality.

To apply for a home loan the age of the applicants must be at least 21 years and must complete their costs by the official retirement age – for salaried applicants 65 years and for self-employed applicants 70 years.

Mandatory down payment

To safeguard banks, Dubai government it is authorize UAE citizens to make a down payment of at least 20% on their first home if the real estate worth is not more than AED 5 million. Besides, UAE citizens must make a down payment of at least 30% if the worth is more than AED 5 million. However, for UAE Nationals government housing schemes have an exception, where the required down payment is 15%.

On purchase of first home foreigners and expat residents should make a down payment of at least 20% for real estate worth under AED 5 million and 25% for real estate of worth over AED 5 million. It is possible that non-residents must make a high down payment, usually 50%

For subsequent homes, at least 35% of down payment is required of the real estate worth. This figure is 40% for foreigners and expat residents.

Down payments

Type of property          Residents         Expats

Construction home       50%                 50%

Second home                  35%                 40%

> AED 5 million             20%                 25%

< AED 5 million              15%                 20%


Down payments on real estate which are still under development are usually more, 50% for all candidates. It is possible that some developers may give schemes with delayed or considerably lower down payment requirements.

To help out in balancing the weight of the high down payment, it is possible that banks might provide other loans to cover the costs of associated fees and registering the property.

Required documents

In majority of cases, banks will ask for the following documents:

  • Bank statements – 12 months for self-employed applicants and 3-6 months for salaried applicants.
  • Valid passport copy
  • Business bank statements and Business audit– for up to 24 months for self-employed applicants
  • Government issued ID card or Emirates ID (if applicable)
  • Salary pay slips – typically 6 months for salaried applicants
  • Tax returns in home country (for non-resident foreign investors)
  • Salary certificate – for salaried applicants

Islamic vs. Conventional mortgage

Sharia government does not permit somebody or institution to benefit from cash lending or to sell the share. Islamic contracts remain structured separately, wherever a specific bank buys some assets including next trades this reverse to a value. Each candidate then compensates toward the monthly payments. About this bank may acquire some assets including leasing them behind. Applicants can decide which contract license to exercise; Islamic debt is prevalent amongst Emiratis.

Any of these more precise words exist more complex while this occurs on Islamic contracts therefore interest directions not to be imposed against slow pays, only one fixed payment may utilize preferably. That may obtain engagement over any candidates. While traditional contracts, old contracts remain capped to 3% from the residual investment rate (plus VAT). Islamic debts do not restrict by these same regulations also initial reimbursement payments may differ with the bank.

Picking the right mortgage

Home loans vary widely across banks and according to the applicant’s profile and needs. Consider the following criteria when choosing a mortgage provider.

Type of property

Banks will typically finance any ready property in Dubai that has a title deed. When it comes to off-plan or under construction properties, banks may limit which developers they are willing to finance. In general, banks will finance residential villas and apartments for all applicants but will only finance plots of land and farms for UAE Nationals.

Minimum salary

Different finance rates are offered by banks. Some banks require that salary be transferred to their account, to protect their liabilities in the event of non-payment. To stimulate salary account transfer, banks may forego processing fees or offer more competitive rates.

Maximum mortgage product

This sum varies by home loan product and depends on the applicant’s debt burden ratio.

Interest rates – Variable vs. Fixed

Based on the daily EIBOR rate, normally fixed interest rates are given for 1-5 years and then they go back to a variable rate. Fixed interest rates give easy calculation for monthly payment and peace of mind but they can be costly in the long term. As compared to fixed rates, variable interest rates are the market rates which means that if the rates of EIBOR go up then the variable rate will also follow.

Reducing vs. Flat rate

Reducing rates and flat rates can be used to structure payments. The calculations of flat rates are based on the total sum loan for the total tenure of the loan. These are expensive in the long run but promise an easy solution for monthly payment calculations. For instance, if the flat rate is 2% and the amount of loan is AED 1,000,000, then until the loan is the complete monthly payment will be AED 20,000.

In comparison to flat rates, the calculation of reducing rates is done against the amount of loan remaining.  Reducing rates are cheaper but could be difficult to calculate.

Arrangement fee

Typically, 1% of the loan amount is charged as a processing fee, but if a specific rate is selected or if the applicant already has a salaried account then the processing fee could be ignored.

Repayment period

In Dubai, a home loan tenure is until the official age of retirement, or normally 25 years. Grace period or a few months delay in first installment payment is sometimes offered by some mortgage providers.

Early settlement fee

It is made compulsory by the Central bank of the United Arab Emirates that the cost of the bank or VAT plus 3% of the outstanding amount from early settlement loans will be charged. However, it is possible that the mortgage could take an additional processing fee for transfers of balance.

If the candidate plans to sell the real estate in the future then the settlement fee is important because before the property is sold the mortgage needs to be cleared.

Penalties for overpaying

Without any fee or penalty, extra repayment is allowed by some banks up to a certain limit a month.

‘Takaful’ or Compulsory insurances

For the home loan, it is required by most of the banks to take out life insurance as well as property insurance. This insurance could be issued by an external provider or by the same bank. The bank could charge a fee in case of an external provider.

Valuation fee

The banks will value the real estate before allowing the loan to make sure the asking price is sensible according to the real estate market. A fee in the range of AED 2,500 to 3,500 will be asked for valuation purposes.

Banks could force extra terms and conditions along with the above-mentioned criteria. For instance, interest and late payment charges, and the balance transfer fees could differ by the bank and home loan product. It is always best to have all conditions discussed in writing and to understand all details.

On websites like (, by comparing available products mortgages can be searched by candidates and after that get in touch with banks for personalized offers.


  • online casino
    on November 14, 2021

    Hello! I’m at work surfing around your blog from my new apple iphone!
    Just wanted to sayy I love reading your blog and look forward to all your posts!
    Carry on the superb work!

  • payless4mortgage
    on February 14, 2022

    Thanks for sharing such beautiful info , i think u will also share such type of info , i am very happy to that your way of consideration is very much good , i liked it.

  • דירות דיסקרטיות בירושלים
    on May 13, 2022

    Everything is very open with a precise clarification of the issues. It was truly informative. Your site is extremely helpful. Many thanks for sharing!

  • on June 20, 2022

    I am now not positive where you are getting your information, but good topic. I must spend some time learning much more or figuring out more. Thanks for magnificent info I used to be looking for this info for my mission.

  • on June 23, 2022

    I went over this website and I believe you have a lot of excellent information, saved to favorites (:.

Leave a Reply

Your email address will not be published.

error: Content is protected !!

Compare Listings