Best Home Loans for Residents in the UAE

The required deposit for a mortgage in Dubai is usually capped at 15% of the value of the property for UAE nationals. On the other hand, expats may have a higher minimum deposit requirement of 20%. For properties which are valued at AED 5 million or more, the deposit requirement can increase to 25% for UAE nationals and 30% for expats. To purchase a second unit with a home loan this deposit requirement increases to 35% for UAE nationals and 40% for expats.

In Dubai, the current mortgage rates generally range starts from 3.89%. These rates can change depending on the concerned mortgage product (fixed or variable), the lender, and the financial situation of the borrower. Many financial institutions provide long-term fixed rates, such as for five years. Please note that the fixed rates are often a bit higher than their variable counterparts.

Although the minimum salary to get a mortgage in Dubai is AED 10,000 for UAE nationals and expats, majority of the banks requires a minimum salary of AED 15,000. Note that the ultimate decision on loan approval depends on varied factors such as the credit score of the borrower, the debt-to-income ratio, and the specific criteria set by the lender.

Yes, non-residents can absolutely avail of financing options in the UAE, especially for buying properties. However, non-residents must meet various criteria, including a strong credit history, minimum income requirements, and age limits (typically 21-65). While the terms might be stricter for non-residents than it is for residents, financial institutions and banks in the UAE provide home loans and other allied financing options to non-residents, especially in cities such as Dubai and Abu Dhabi, with flexible terms and competitive rates.

Non-residents have to provide proof of income (usually through bank statements) and a reliable credit history, which needs to be verified through credit bureaus in their specific home country or the Al Etihad Credit Bureau of the UAE. Apart from these, identity documents and bank statements are required. For residents, the documents that are required to secure a home loan in the UAE include a copy of your passport, Visa, Emirates ID, proof of your current address (a copy of tenancy contract or DEWA bill), a salary certificate, payslips and bank statements for the last six months.

It can take up to five business days to get pre-approvals for a home loan for UAE residents. For non-residents and self-employed, it can go up to 15 business days. This timeframe varies depending on the internal procedure of the bank or the complexity of the application. While some banks may offer instant pre-approvals, others can take a bit of time.

Yes, it is usually possible to finance your handover payment with a mortgage. Many developers offer properties for sale at an affordable price during the off-plan stage, with the agreement that the final payment will be made upon the project’s completion and handover. You can finance this final payment through a mortgage, given you meet the eligibility criteria of the lender and the property in question is eligible for mortgage financing.