For expatriates looking to purchase property in the UAE, securing a mortgage can be a complex but rewarding process. With the right knowledge, expats can navigate the UAE mortgage market and make informed decisions about home financing. This guide explores key considerations, eligibility criteria, types of mortgages, and the necessary documentation for expats looking to buy property in the UAE.
Expats generally face higher down payment requirements compared to UAE nationals.
The required down payment varies based on the property value. Typically, expect to pay:
20% to 25% for properties valued at AED 5 million or less.
30% or more for properties exceeding AED 5 million.
Some banks may require an even larger deposit for non-residents.
LTV ratios indicate how much of the property’s value a lender is willing to finance.
For expats, LTV ratios are typically capped at 75% for properties valued below AED 5 million.
The LTV ratio may decrease for higher-value properties or non-resident buyers.
UAE mortgages come with fixed and variable interest rate options.
Fixed-rate mortgages offer stable interest rates for a predetermined period, usually 3 to 5 years.
Variable-rate mortgages fluctuate based on the Emirates Interbank Offered Rate (EIBOR) and market conditions.
Some lenders offer hybrid options that combine fixed and variable rates.
Lenders assess various factors to determine mortgage eligibility:
Income and Employment Stability: A minimum monthly salary requirement applies (often AED 15,000 or more).
Creditworthiness: A strong credit history and debt-to-income ratio impact loan approval.
Residency Status: UAE residents typically have more favorable terms compared to non-residents.
Financial Documentation: Lenders require proof of stable income and employment history.
Fixed-Rate Mortgages: Offer stability with consistent monthly payments for a set period.
Variable-Rate Mortgages: Interest rates fluctuate based on market conditions.
Islamic Mortgages: Sharia-compliant financing, based on the Murabaha or Ijarah structure, where banks buy the property and lease or resell it to the borrower at a profit.
Several UAE banks provide mortgage options for expatriates, including:
Emirates NBD
First Abu Dhabi Bank (FAB)
Mashreq Bank
HSBC
Abu Dhabi Commercial Bank (ADCB)
Expats need to submit the following documents to apply for a mortgage:
Passport copy
UAE residency visa (if applicable)
Proof of income (salary certificates, pay slips, and bank statements for the last 6 months)
Employment verification letter (for salaried employees)
Trade license and audited financials (for self-employed applicants)
Property purchase agreement
Consulting a mortgage broker or financial advisor can help expats find the best mortgage rates and terms.
Mortgage regulations and lending policies may change, so it’s crucial to get up-to-date information from banks.
Seeking legal counsel before finalizing a real estate transaction ensures compliance with UAE property laws.
By understanding mortgage options and requirements, expats can successfully finance their dream home in the UAE with confidence.
Request call back
