How to Obtain a Mortgage in Dubai for Residents and Non-Residents
Securing a mortgage in Dubai is feasible for both residents and non-residents, though the conditions tend to be more favorable for Emirates ID holders. Here is a comprehensive guide:
Eligibility Criteria
Residents:
• Down Payment: Typically starts at 20%.
• Income Requirements: Minimum monthly income between $3,300 and $4,100. The monthly payment should not exceed 50% of the borrower's income.
• Maximum Term: Up to 25 years or until the applicant reaches the age of 65 for employees and 70 for entrepreneurs.
Non-Residents:
• Down Payment: Generally starts at 50%, but some banks may finance up to 50% of the property's value, especially for properties exceeding AED 5 million.
• Nationality: Must be a citizen of a country listed as eligible by the bank.
• Employment Status: Both salaried individuals and self-employed can apply. Proof of stable income is necessary.
• Age Restrictions: Must be at least 21 years old. The loan term usually does not extend beyond the age of 65 for salaried individuals or 70 for self-employed individuals.
• Income Requirements: Specific to the bank; for instance, ADCB requires a minimum monthly income of AED 15,000 (post-tax).
Required Documentation
Residents:
• For Employees: Employer information and a certificate of income for the last six months.
• For Entrepreneurs: Audit reports for the past year and bank statements for the last six months.
Non-Residents:
• Identity Proof: Valid passport.
• Bank Statements: Last three to six months.
• Additional Documents: May include pay slips, salary certificates, tax returns, trade license, and financial statements.
Mortgage Costs
• Bank Commission: 0.5-1% of the property value (refundable if the application is refused).
• Property Valuation: Approximately $1,000.
• Property Insurance: From 0.5% to 1% of the property's value.
• Borrower’s Life Insurance: Around 0.3% of the loan amount.
• Mortgage Registration Fee (DLD): 0.25% of the loan amount
Interest Rates
• Fixed Rates: Average between 5.2% and 5.3% per annum for one to five years, subject to market conditions.
• Floating Rates: Based on the interbank lending rate (EIBOR) plus the bank margin
Banks Offering Mortgages
Several banks offer mortgage services to non-residents, including:
• Dubai Islamic Bank
• HSBC
• Abu Dhabi Islamic Bank
• First Abu Dhabi Bank
• Emirates Islamic Bank
• Ajman Bank
• Standard Chartered
• Abu Dhabi Commercial Bank
Off-Plan Properties
Obtaining a mortgage for off-plan properties in Dubai can be challenging. However, some developers offer payment plans where you pay during the construction phase and secure a mortgage upon completion. For instance, MAG offers a 40/60 payment plan for their Keturah Reserve project:
• 10%: Down payment
• 30%: During construction
• 60%: Upon completion, with the possibility to secure a mortgage for this amount
This guide provides an overview of the mortgage process in Dubai for both residents and non-residents, covering eligibility, required documentation, costs, and interest rates. For further details and personalized advice, consulting directly with banks or mortgage advisors in Dubai is recommended.
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