Mortgage Process in Dubai: Step-by-Step Guide for Investors and Buyers
Dubai’s property market is growing rapidly, attracting both local and global investors. Most buyers require mortgage financing to purchase property. Understanding the mortgage process, eligibility, types of loans, and fees is essential for a smooth property purchase.
Understanding Mortgages in Dubai
A mortgage is a loan from a bank or financial institution to help buyers purchase property. In Dubai, mortgages are available to residents and non-residents, with specific eligibility criteria and down payment requirements.
Key Features:
- Loan tenure: 5–25 years
- Interest rates: Fixed or variable
- Down payment: 20–25% for residents, 50% for non-residents
Step-by-Step Mortgage Process
1. Determine Your Budget
- Assess your financial capability, including down payment, monthly installments, and hidden costs.
- Factor in service charges, maintenance, and registration fees.
2. Check Eligibility
- Residents: Minimum salary AED 10,000–15,000/month for apartments.
- Non-residents: Must show stable income and ability to pay down payment.
- Age: Typically 21–65 years.
3. Pre-Approval
- Obtain mortgage pre-approval from banks to determine the maximum loan amount.
- Pre-approval strengthens bargaining power with developers.
4. Property Selection
- Choose freehold properties eligible for mortgage financing.
- Off-plan or ready-to-move properties can both qualify.
5. Submit Application
- Provide documents: passport, visa, Emirates ID, salary certificate, bank statements, and property details.
6. Bank Valuation & Approval
- Bank conducts property valuations to determine loan-to-value ratio.
- Approval may take 7–21 days.
7. Sign Mortgage Agreement
- Includes loan amount, tenure, interest rate, and repayment schedule.
8. Property Registration
- Register property with Dubai Land Department (DLD).
- DLD fees: 4% of property price + administrative fee.
Mortgage Options in Dubai
| Type | Features | Best For |
| Fixed-Rate | Interest remains constant | Budget certainty |
| Variable Rate | Interest linked to EIBOR | Potential lower rates, flexible tenure |
| Sharia-Compliant | Islamic finance, no interest | Investors seeking halal options |
| Off-Plan | Developer installment + bank finance | Long-term investment |
Tips for Global Investors
- Compare multiple banks with the lowest interest rates and fees.
- Include all hidden costs in budget planning.
- Use a mortgage advisor to navigate Dubai regulations.
FAQs – Dubai Mortgage Process
Q1: Can foreigners get a mortgage in Dubai?
A: Yes, with a minimum 50% down payment.
Q2: How long does the mortgage process take?
A: Typically 3–4 weeks after submission.
Q3: Are off-plan properties eligible?
A: Yes, most off-plan developments approved by RERA qualify.
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