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home mortgage

Who can get a mortgage in the UAE?

In the United Arab Emirates, foreign purchasers are able to obtain a mortgage, but they must fulfill specific requirements. Depending on the location you are purchasing in and the requirements of your lender, you must have held your present position for a minimum of six months or a year.

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Borrowers who are self-employed must have operated their firm for a minimum of two years. Having an established relationship with the bank might also be advantageous because it will be aware of your situation.

One of the most peculiar aspects of the system is that certain banks would only consider candidates who are employed by particular businesses. This implies that you are not likely to experience issues if you work for a multinational corporation, bank, or government agency.

Even if you have good credit, you can have trouble getting a loan from some lenders if your firm is smaller or less well-known.

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When applying, it’s also critical to have a spotless credit history because candidates with weak or nonexistent credit histories are typically turned down by lenders. In light of this, you shouldn’t apply for a mortgage until you have resolved any errors on your credit report.

In order to establish credit history if you have never had credit, you can think about getting a credit card and making monthly full payments.

How much can you borrow for a UAE mortgage?

If an expat is purchasing a house up to AED 5 million, they will require a deposit of at least 25% when taking out a residential loan. Higher-end properties will need a minimum 35% down payment. A buy-to-let mortgage is necessary if you want to invest in real estate and rent it out; this type of mortgage has a substantially larger down payment requirement, often between 40 and 50 percent.

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There are several methods to cap borrowing. Your entire expected income over the following seven years cannot exceed the amount you will be borrowing, interest included. Unlike several European nations where there are restrictions of 30% or 35%, Dubai has a generous 50% monthly income ceiling for mortgage payments. Because some lenders view foreign applicants as riskier, you may discover that banks demand you to earn more than a local candidate when you apply for a mortgage.

Documents to get a mortgage in the UAE

Depending on the bank you use, different papers may be required when applying for a mortgage.

Lenders are likely to ask you for the following:
  • A duplicate of your passport;
  • Evidence of current address and confirmation of residency in the United Arab Emirates;
  • Financial records, including your tax return, bank statements, and proof of salary
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