Mortgage Options in Dubai for Non-residents
The prolific nature of the real estate market of Dubai not only stems from stunning architecture and infrastructure but also from the fact that you get economical prices and low interest rates for mortgages. The varied mortgage options are not only limited to the residents of the city but also extend to the non-residents, making it extremely easy for them to get interested in and invest in Dubai’s real estate market.
While options for paying for their investments by themselves are always available, for those who want help in making their investments, there are plenty of mortgage options to go around. In this space, we are going to learn about home loan options in Dubai, including their features, eligibility, application process, and banks you need to eye to get the mortgage from.
Features of Mortgages in Dubai for Non-residents
The accessibility to mortgages has contributed more to foreigners buying properties in Dubai. Mortgages for real estate that are offered in Dubai specifically for non-residents have their distinctive features. Primary among them are as follows.
Please note that the figures mentioned below are approximate estimations and are subject to change. Confirm with the concerned bank that you are procuring a mortgage from beforehand.
Loan Amount
When you are procuring a mortgage from a reputed bank in Dubai, you get a sufficient amount to fulfill the purchasing capacity of your chosen property. Some prominent banks offer up to AED 20 million as part of mortgages to non-residents of Dubai. At the end of the day, the approved amount of the mortgage will depend on your current financial status as well as the bank you choose to get the mortgage from.
Interest Rates
The home loan interest rate in Dubai is indeed highly feasible, owing to its thriving real estate market. But, if we pull out a comparison, the interest rates that are offered to non-residents are generally higher than the ones provided to the citizens of the UAE or expats. Try and research which bank offers a more lucrative interest rate at the time of your purchase to ensure higher profitability.
Mortgage Duration
Usually, the duration of the mortgage provided to non-residents is shorter in comparison to the ones offered to the citizens of the UAE or expats. While residents and expats get a tenure of usually 25 years, non-residents are provided a shorter duration than that.
Loan-to-Value Ratio
Obtaining clarity about the Loan-to-Value (LTV) ratio is crucial before applying for a mortgage. For non-residents, if you are aiming for a property that is valued up to AED 5 million, then you need to make a down payment of at least 20% generally. On the other hand, if you are purchasing a property that is worth more than AED 5 million, then in most cases, you need to make a down payment of at least 30%.
Eligibility for Non-resident Mortgages in Dubai
Many banks offer home loans for expats in Dubai as well as for non-residents. To be eligible for a mortgage for a real estate investment in Dubai as a non-resident, you need to fulfill the following criteria.
- First and foremost, you must be a resident of one of the nations that is mentioned in the list of the bank that you are taking a mortgage from.
- You must have access to regular earnings, irrespective of whether you are working as a salaried individual or self-employed individual.
- You have to meet the minimal monthly income criteria set by the bank you are taking a mortgage from. The amount varies from bank to bank.
- It is paramount that you buy a property from a reputed real estate developer since most banks only approve mortgages against properties developed by developers that are present on their list.
Top Banks Offering Mortgage in Dubai for Non-residents
The Government of the UAE values foreign relationships and the contributions made by foreign investors and has made several initiatives to encourage foreign investments such as the UAE Golden Visa. Several banks in UAE offer mortgages to non-residents. The following is a list of some of the most reputed ones among them.
Mashreq
Mashreq Bank provides up to AED 10 million as a home loan to non-residents. With a loan repayment tenure of up to 25 years, you can apply for this mortgage as long as you are a salaried or self-employed individual. Please note that at most 60% of the market value of the property that you are purchasing is going to be financed by the mortgage from this bank.
First Abu Dhabi Bank
First Abu Dhabi Bank (FAB) offers non-residents a housing loan in UAE of up to AED 10 million. The mortgage needs to be repaid within a maximum duration of 20 years. FAB follows a fixed interest rate that is measured as per the duration of the mortgage. For instance, if you are taking a mortgage for two years, then the interest rate is going to be 2.5%. For three years, it is going to be 3% and for five years, it is going to be 3.25%, etc.
HSBC
If you are an HSBC Jade or Premier customer, then you can apply for the HSBC Fixed Rate Home Loan as a non-resident, wherein you will get a mortgage of up to AED 2 million. There is also a provision for the mortgage amount to be repaid within five years.
Dubai Islamic Bank
Considered one of the highest mortgage providers in Dubai for non-residents, Dubai Islamic Bank offers mortgages on both ready and off-plan properties with flexible tenure. You can apply for this mortgage even if you are purchasing under-construction estates in freehold areas of Dubai.
Abu Dhabi Islamic Bank
Abu Dhabi Islamic Bank offers mortgages in the UAE for non-residents as long as you are a salaried individual and are at least 25 years old at the time of application and at most 65 years old at the time of finance maturity. However, the only change for self-employed individuals is that the minimum age at the time of application they need to be is 30. This bank finances up to 50% of the property value with the maximum financing amount being AED 5 million.
Emirates Islamic Bank
Emirates Islamic Bank provides comprehensive solutions to non-residents who are interested in purchasing any freehold property. It has an extremely large list of approved projects that you can avail of, and it offers special handover finance packages for ready properties.
ADCB
Getting a mortgage in Dubai for non-residents is extremely easy if you meet the required criteria of the bank. ADCB finances up to 50% of the total property value for non-residents with repayment tenure of up to 15 years.
Required Documents for Getting Mortgages in Dubai for Non-Residents
You need to provide the following set of documents while applying for a mortgage in Dubai as a non-resident.
- Valid passport as an identity proof.
- Bank statements for the past 3-6 months
- Payslips (for salaried individuals)
- Tax returns
- Reviewed financial statements
- Trade license
- Details of pre-existing loans
In addition, there may be some other documents that a bank may ask you depending on its mortgage policies.
How to Apply for Mortgages in Dubai for Non-Residents?
You can apply for mortgages in Dubai as a non-resident both offline by making visits to the concerned bank of your choice or online through the bank’s official website or the websites of insurance aggregators and financial technology companies. The processes for applying for both are mentioned below.
Offline Process
Procuring a mortgage offline as a non-resident in Dubai is comparatively a taxing process than doing it online. You need to first visit the bank of your choice. Start by obtaining a home mortgage application form, fill out the details, and submit it at the designated counter.
Make sure you have all the documents ready and in hand before you head out to visit the bank branch. After the bank processes your application form and verifies the documents you submitted, you need to wait for the approval of the loan. Once the loan is approved, you will be notified by the bank.
Online Process
Start with visiting the official website of the bank you want a mortgage from. You can even visit the websites of insurance aggregators and financial technology companies.
Although the process might be slightly different from bank to bank, the basic premise is going to remain the same. Fill out the application process and proceed to browse through the various options for mortgages available to you. Select one that meets your criteria.
There will be information about home loan interest rates in Dubai for expats and non-residents. Read them carefully. In addition, go through the Dubai mortgage calculator for non-residents to find out the monthly payments you need to make. The result of the calculation will be made as per the mortgage tenure, interest rate, and mortgage amount you select.
You will be asked to fill out a time when the bank representatives will contact you. Once your information is submitted and the bank contacts you, you can provide the necessary documents and proceed accordingly.
To Conclude
Purchasing your dream property as a non-resident becomes a feasible reality when you get an easy loan in Dubai. Thanks to the mortgage policies of various banks all across Dubai, affording a luxurious property in the real estate market of Dubai is now possible more than ever before. With flexible payment plans and the high amount of loans offered, the sky is the limit for non-residents.
You just need to make sure you are buying a property from a reputed developer and getting a mortgage from a trusted bank. Follow the legal proceedings and plan your finances better with the help of the mortgages offered by the banks.
FAQs
Questions about Mortgage Options for Non-residents
How to get a mortgage in Dubai?
To get a mortgage in Dubai, you need to select a property from a reputed real estate developer and approach an established bank. Provide the necessary documents that showcase your income stability and proof of home loan down payment in Dubai for the property you are purchasing. Once your documents are verified and you have selected a mortgage option that suits you the best, the bank will get in touch with you to inform you that your mortgage has been approved.
How much home loan can I get in the UAE?
The amount of home loan you can get in the UAE as a non-resident varies from bank to bank. While some offer a maximum amount of AED 2 million, some can even go as high as AED 20 million.
Can foreigners get mortgages in Dubai?
Yes, foreigners can get mortgages in Dubai from several prominent banks. If you purchase a property from an established real estate developer and have proper documentation to be eligible for a mortgage, then you can get a mortgage as long as you have made the necessary down payment.
Can I leave the UAE with an unsettled home loan?
You can leave the UAE with a mortgage by keeping your property as a buy-to-let. However, if you leave the country with the intention of not clearing your debt, then a criminal complaint can be lodged against you leading to severe legal repercussions.
What is the home loan interest rate in Dubai?
The home loan interest rate in Dubai is a subjective matter. It varies from bank to bank and generally ranges from 1.66% to 5%.
What types of property can I get a mortgage on?
Depending on the bank you are approaching, you can get a mortgage on both ready as well as off-plan properties in Dubai.
Can I get a mortgage to finance an off-plan property purchase?
Yes, several banks provide mortgages to finance off-plan properties in Dubai, irrespective of whether you are a UAE citizen, expat, or non-resident.