Dubai’s real estate market has long captivated international investors, expatriates, and individuals searching for second homes or high-yield rental properties. With its transparent regulatory framework, investor-friendly policies, and impressive selection of properties—from sleek city apartments to sprawling beachfront villas—property in Dubai is more attainable than ever.
For foreigners and expatriates eager to own a piece of this dynamic city, learning how to get a mortgage in Dubai is the first and most crucial step toward turning property ambitions into reality.
Can Foreigners Get a Mortgage in Dubai?
Yes, foreigners and expatriates can get a mortgage in Dubai. Both UAE residents and non-residents are eligible to apply, though the terms and lending criteria may vary depending on your residency status.
Since the Dubai government opened freehold property ownership to foreign buyers in areas like Dubai Marina, Palm Jumeirah, and Downtown Dubai, financial institutions have introduced a variety of mortgage products specifically designed for expats. Understanding how to get a mortgage in Dubai is essential for accessing these attractive investment opportunities.
Types of Mortgages in Dubai
Before exploring how to get a mortgage in Dubai, it’s important to understand the options available:
1. Fixed-Rate Mortgage
The interest rate remains fixed for a certain period (usually 1 to 5 years). Predictable payments make this popular among expats seeking stability.
2. Variable/Reducing-Rate Mortgage
The interest rate fluctuates based on the Emirates Interbank Offered Rate (LIBOR). Your payments can increase or decrease over time potentially saving money if rates fall.
3. Interest-Only Mortgage
You pay only the interest for an agreed period (usually up to 5 years), and repay the principal later. This option is less common but available for investors seeking short-term ownership.
Eligibility Requirements for a Mortgage in Dubai
To understand how to get a mortgage in Dubai, be aware of the basic eligibility requirements:
| Requirement | UAE Resident | Non-Resident |
| Age | 21–65 years (at loan maturity) | 21–65 years |
| Minimum Income | ~AED 15,000/month (varies by bank) | Typically higher than residents |
| Employment | 6+ months employment OR 1+ year in business (for self-employed) | Proof of stable income and employment overseas |
| Credit History | UAE credit score check | International credit report (or other proof of creditworthiness) |
Banks usually finance up to 75-80% of the property value for UAE residents, and around 60-70% for non-residents.
Required Documents for Mortgage Application
As part of the process of how to get a mortgage in Dubai, gather the following:
- Passport copy (with residence visa for residents)
- Emirates ID (for residents)
- Proof of income (salary certificate or employment contract)
- Bank statements (6 months)
- Payslips (3–6 months)
- Proof of address (utility bill or tenancy contract)
- Credit report (AECB for residents; international credit report for non-residents)
- Memorandum of Understanding (MoU) for the property
- Down payment proof
The Step-by-Step Process to Get a Mortgage in Dubai
Here’s a breakdown of how to get a mortgage in Dubai:
1. Assess Your Eligibility
Before contacting lenders, review your income, credit history, and documents to gauge eligibility.
2. Choose a Lender or Mortgage Broker
You can approach banks directly or hire a licensed mortgage broker to compare deals across banks and streamline the process.
Tip: Mortgage brokers in Dubai often have access to exclusive rates and can simplify document handling, especially for non-residents.
3. Obtain Pre-Approval
Pre-approval (or pre-qualification) gives you an estimate of how much you can borrow and strengthens your negotiating power with sellers. This is valid for about 60 to 90 days.
4. Find Your Property
Choose a property in a designated freehold area and sign a Memorandum of Understanding (MoU) with the seller. Pay the standard 10% deposit.
5. Final Mortgage Application & Property Valuation
Once the property is selected, the bank conducts a valuation (AED 2,500–5,000 fee) to confirm its market value. You submit final documents for loan approval.
6. Sign Final Offer Letter (FOL)
If approved, you’ll sign the Final Offer Letter outlining the loan terms.
7. Transfer Ownership
After signing, settle payments (including Dubai Land Department fees) and transfer property ownership. The bank will disburse funds directly to the seller.
Costs Associated with Getting a Mortgage in Dubai
Knowing how to get a mortgage in Dubai also means budgeting for extra costs:
| Fee | Estimated Cost |
| Bank Arrangement Fee | ~1% of loan amount |
| Property Valuation Fee | AED 2,500–5,000 |
| Land Department Transfer Fee | 4% of property value |
| Registration Fee | AED 4,000–5,000 |
| Mortgage Registration Fee | 0.25% of loan amount + AED 290 |
| Broker Fee (optional) | ~1–2% of property value |
Key Tips for a Smooth Mortgage Process
- Improve your credit score: Pay off outstanding debts to strengthen eligibility.
- Compare lenders: Different banks offer varying rates, LTVs, and flexibility, and don’t settle too quickly.
- Consider life insurance: Many banks require mortgage life insurance as a condition of the loan.
- Understand early settlement penalties: If you plan to pay off your mortgage early, check if penalties apply (typically up to 1% of the outstanding balance).
Conclusion
Securing a mortgage in Dubai as a foreigner is not only possible and it’s highly achievable with the right preparation. Whether you’re purchasing your dream home or capitalizing on Dubai’s booming real estate market as an investor, understanding the mortgage process and partnering with trusted professionals can make the journey smooth and stress-free.
With clear guidelines, competitive financing options, and a welcoming property landscape, Dubai offers exciting opportunities for international buyers ready to take the next step.
Useful Resource
For the latest information on UAE mortgage rules, eligibility guidelines, and property ownership regulations, visit the official Dubai Land Department website:
