How to purchase real estate in the UAE on a mortgage in 2024

How to purchase real estate in the UAE on a mortgage in 2024

How can you purchase real estate in the UAE on a mortgage in 2024? What are the key requirements for foreigners to get a mortgage in the UAE? How can you apply for a mortgage in Dubai if you are a non-resident of the emirate? What documents does a foreigner need to apply for a mortgage in the UAE? What are the additional costs when applying for a mortgage? Also, can one obtain a visa after purchasing a property?

As you can see, purchasing a property on a mortgage in the United Arab Emirates can be quite an involved and challenging experience. This is why we here at Emirates.Estate have collected all the necessary information regarding this in the following article.

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Mortgage loan for foreigners - key requirements

The key requirements for foreigners when applying for a mortgage at UAE banks include:

  • The person applying for a home loan must be insured. The bank will charge a fee of about 0.3–0.8% of the loan amount. In addition, the bank will also charge a fee for processing the approved loan, which will cost up to 1.5% of the total loan amount.
  • The borrower must be of legal age. This means that at the time of signing the loan agreement in the bank of the United Arab Emirates, the borrower must be at least 21 years old.
  • While the maximum age limit for taking out a mortgage is determined by banks, most often people over the age of 55 are highly unlikely to get one. The official threshold is 65 years for those employed by a company and 70 years for entrepreneurs.
  • A foreigner can get a mortgage at a rate of between 3% to 5% per annum.
  • The mortgage period cannot be less than five years and more than 25 years.
  • The loan amount cannot exceed 80% of the value of the purchased property.

How to purchase real estate in the UAE on a mortgage in 2024

How to apply for a mortgage in Dubai if you are a non-resident of the emirate

How can you apply for a mortgage in Dubai if you are a non-resident of the emirate? All banks in the UAE require that the borrower is insured. Otherwise, if you’re not then the banks will refuse to issue you a home loan.

As for any other additional requirements that non-residents might need when it comes to applying for a mortgage, this may vary from bank to bank. Nevertheless, in the below table we have taken the liberty of providing you with the requirements of the top local banks in the UAE:

HSBC BankADIBMashreq Bank
Provides loans to foreigners up to 60% of the property value. Offers foreigners loans not exceeding 50% of the property value. Can grant loans up to 50% of the property value.
The borrower must be between 21 years old at the time of loan application and 65 years old at the time of loan maturity. The borrower’s age must be between 25 and 65 years at the time of loan maturity. The borrower’s age must be at least 21 years old.

Getting a visa after purchasing a property

Residency in the United Arab Emirates can be obtained after purchasing real estate worth at least $204,000 in Dubai or $544,500 in any emirate. Mortgages are permissible, but the minimum amount required for a residence visa must be paid from personal funds.

Mortgage in the UAE (United Arab Emirates)

Not every property can be purchased by non-residents on a mortgage. Some banks have their own list of residential properties that foreigners can purchase on a mortgage. Therefore, it is better to check with the various banks what freehold zones are available to purchase a property on a mortgage.

Documents a foreigner needs in order to apply for a mortgage in the UAE

In order to apply for a home loan in a UAE bank, a foreigner must provide the required documents, namely:

  • A mortgage application.
  • A copy of the applicant’s passport.
  • A copy of a residence visa or Emirates ID (if applicable).
  • The latest six-month bank statement.
  • A salary certificate (if the borrower is an employee).
  • Registration documents of the company, its charter, certificates, and an auditor’s opinion on the financial position of the company if the applicant is an entrepreneur.

The bank in the UAE typically makes a decision on the mortgage application within 2–10 days for residents and 10–14 days for non-residents. If your application is pre-approved, you have 45–90 days to find a property.

Afterward, the bank will inspect the property you intend to purchase. Specifically, when buying on the secondary market, the seller’s details and a No Objection Certificate (NOC) from the developer are required. The bank conducts a property appraisal, considering its age, technical condition, and construction quality, with a separate fee for this service.

You will receive a letter with the bank’s final decision. If it’s positive, you can proceed with the transaction.

Then, the sale is registered with the Dubai Land Department (DLD). Notably, third parties with powers of attorney can represent the interests of both sides in the deal, regardless of whether the property is purchased on a mortgage.

How to purchase real estate in the UAE on a mortgage in 2024

Additional costs when applying for a mortgage

When applying for a mortgage, the applicant must make the following payments:

  • A down payment of at least 20% of the cost of the purchased property.
  • A bank fee for issuing a loan in the amount of up to 1.5% of the value of the property.
  • Mandatory life insurance for the person taking out the mortgage, costing approximately 0.3–0.8% of the loan amount.
  • Property appraisal fee of AED 2,000 to AED 5,000 ($545 to $1,400).
  • DLD mortgage registration fee of 0.25%, plus AED 290 ($80).

We will assist you in choosing and purchasing the best real estate in the United Arab Emirates!

Find your dream home for sale in the UAE today! Visit our website Emirates.Estate and find a wide selection of only the best properties for sale in the United Arab Emirates. Our experts are ready and available not only to assist you in finding and purchasing your dream apartment but also with any necessary paperwork. So get in touch with Emirates.Estate right now because purchasing an apartment in the UAE has never been this easy or safe.

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