Mortgages

Financing a property purchase in Dubai works differently than it does back home, especially if you’re buying as a non-resident. Here’s a practical overview of how mortgages work in Dubai and what overseas buyers should expect.

Can Foreigners Get a Mortgage in Dubai?

Yes. UAE banks and specialist mortgage brokers regularly lend to non-resident foreign buyers, though terms are generally less favorable than for UAE residents, with lower loan-to-value ratios and sometimes higher interest rates.

Mortgage Basics for Overseas Buyers

• Non-residents can typically borrow up to 50-60% of the property value
• UAE residents can often borrow up to 75-80%, depending on the bank and property value
• Loan terms usually run up to 25 years, capped by the borrower’s age at maturity
• Interest rates are typically linked to EIBOR plus a bank margin
• Lenders assess your debt-burden ratio, generally capping total monthly debt repayments at around 50% of income

Documents You’ll Typically Need

• Valid passport and visa page (if applicable)
• Proof of income, such as payslips, employment letter, or audited accounts if self-employed
• Bank statements, typically the last 6 months
• Credit report from your home country
• Property details, including the reservation form or MOU from the seller

Steps to Getting a Mortgage

1. Get a mortgage pre-approval before you start viewing properties
2. Sign the MOU with the seller and pay your deposit
3. Submit your full application and property valuation to the lender
4. Receive final mortgage offer and sign the offer letter
5. Complete the transfer at the Dubai Land Department and the bank releases funds

Fixed vs Variable Rate Mortgages

Most Dubai mortgages start with a fixed rate for the first 1-5 years before reverting to a variable rate linked to EIBOR. A fixed rate offers predictable payments early on, while a variable rate can work in your favor if interest rates fall, but carries more uncertainty over the life of the loan.

Frequently Asked Questions

Can I get a Dubai mortgage without UAE residency?

Yes, several banks and brokers offer non-resident mortgages, typically with a lower maximum loan-to-value ratio than resident mortgages.

What other costs come with a mortgage in Dubai?

Expect a bank arrangement fee (often around 1% of the loan), a property valuation fee, and mortgage registration fees at the Dubai Land Department, on top of the standard 4% transfer fee.

Should I use a mortgage broker?

A good broker can compare offers across multiple banks, handle paperwork, and is often especially useful for non-resident buyers navigating the process from abroad.

Need Help Navigating Financing?

Every lender and every buyer’s situation is different. Get in touch and we’ll help point you toward mortgage brokers we trust to guide you through financing as an overseas buyer.