mortgages in Dubai


In the United Arab Emirates, mortgages are easily accessible to foreigners who want to buy or invest in real estate according to real estate agents in Dubai. What you need to do to start climbing the property ladder is explained in this useful guide.

United Arab Emirates mortgages

Expats are choosing the United Arab Emirates and looking for properties for sale in Dubai more and more frequently, particularly in business-friendly regions like Dubai and Abu Dhabi. International and local lenders increasingly provide house loans to expats in the UAE’s well-established mortgage market, which recognises this trend. Foreign nationals residing in the UAE have access to both residential and buy-to-let mortgages, albeit the requirements for each vary.

Should you purchase real estate in the UAE?

 buying a home would be expensive. Apartments and homes can be bought by foreign buyers in some freehold development sites in the UAE.. This sometimes entails putting in an initial 10% deposit, followed by additional payments on predetermined dates while the property is being built with mortgage services in Dubai.

 In Abu Dhabi, the municipality will charge a transfer fee equal to 2% of the purchase price, and the estate agent will receive 2%. You must additionally pay the developer a charge of AED 5,000 for brand-new residences. Similar fees apply in Dubai, with 2% going to the estate agency and 2% to the Dubai Land Department (the seller also pays 2%).

Obtaining a mortgage in Dubai

In the United Arab Emirates, foreign purchasers can obtain a mortgage, but they must fulfil specific requirements. Depending on the area you are purchasing in and the requirements of your lender, you must have been employed at your current position for at least a year or six months. \The bank will be familiar with your situation if you already have a relationship with it, which can be helpful.

One of the largest system peculiarities is that certain banks only accept candidates who work for particular businesses. This indicates that you are unlikely to experience an issue if you work for a government agency, banking organisation, or multinational corporation. Yet, even if you have good credit, you can have trouble getting a loan from some lenders if your employer is smaller or less well-known.  In light of this, you ought to wait to apply for a mortgage until you have examined your credit report and fixed any errors.

UAE mortgage product types

In the United Arab Emirates, mortgages are offered with fixed or variable interest rates.  Although variable-rate mortgages are worth considering if interest rates appear to be falling, fixed-rate mortgages give you certainty about the size of your repayments for a predetermined period of time. The loan must typically be returned before the age of 70, and the terms are typically 25 years long.

UAE mortgage repayments

 Few people have mortgages with just interest. They entail paying only the interest-bearing portion each month and having to repay the entire principal balance at the term’s end. These loans are risky, hence they frequently have periods of only five years.

Mortgage refinancing in the UAE

Banks compete fiercely in the UAE mortgage market by trying to give lowered fixed terms on their mortgages. This is good news for homeowners wishing to switch deals because those who already have mortgages tend to get the best deals. While some banks do not charge a fee for remortgaging, the majority do. The good news is that 3% buy-out fees are no longer in use. The maximum fee was set by regulations introduced in December 2015 at 1% of the balance (up to AED 10,000).

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