Dubai’s diverse real estate market has attracted both local and overseas investors due to its affordable prices and low-interest rates. The “mortgage in Dubai for non-residents” option allows those living abroad to purchase a property in the city without straining their finances.
Learn more about who is eligible for non-resident home loans in Dubai and how such mortgages work in our guide below.
Non-residents can get a mortgage in Dubai?
Investors who want to purchase a Dubai property as a holiday home or to add to their real estate portfolio can certainly obtain a mortgage. With a Dubai mortgage for non-residents, you’ll enjoy various benefits, including high loan amounts and increased flexibility.
There are, however, fewer options available for non-resident foreign investors as compared to UAE citizens and ex-pats. Before proceeding, it’s also important to learn about the types of mortgages in Dubai.
Overseas investors: are they eligible for a Dubai home mortgage?
Make sure you meet the eligibility criteria before applying for a mortgage in Dubai for non-residents.
These criteria are merely a general guideline and may differ between banks in the UAE.
- Before applying for a non-resident home loan in Dubai, you may have to be a citizen of a country on the bank’s list
- To apply for a non-resident mortgage, you must be employed or self-employed
- For applicants seeking a non-resident mortgage in Dubai, some banks also have age restrictions. Non-resident applicants must be at least 25 years of age to apply for a home loan with ADCB.
- Furthermore, you must meet the bank’s minimum monthly income requirement; this may differ for UAE ex-pats and non-residents. This minimum income requirement must also be met after tax deductions. As an example, ADCB requires non-residents to have a monthly income of at least AED 25,000 (post-tax) in order to qualify for a mortgage.
- Some banks also have a list of property developers and projects that are eligible for mortgage financing. Before applying for a mortgage, you must confirm that your property falls under this list.
For mortgage loans for non-UAE residents, what documents are required?
You will need to submit certain documents when applying for a mortgage loan for a non-resident. You may need additional documents depending on the type of property you’re buying and the terms of the sale.
For home loans in Dubai, non-resident applicants will need to submit the following documents:
- Valid passport (as proof of identity)
- Bank statements (for the past three to six months; proof of funds)
The following documents may be required to get a home loan for non-residents in Dubai:
- Tax returns (if applicable)
- Salary certificates or payslips (if you are a salaried employee)
- Obtain a trade license and audited financial statements (if you are self-employed).
- Details of any existing loans
Dubai home loans for non-residents
Dubai offers home loans to non-residents that consist of the following features:
- Maximum Loan Amount: The amount will vary based on the bank and your financial situation. The Mashreq Group offers up to 10 million AED in the financing, while ADCB offers up to 24 million AED in financing.
- LTV ratios: UAE Mortgage Law stipulates that non-UAE citizens must put down at least 20% of the property purchase price as a down payment (for first-time buyers), if the property is worth up to AED 5 million. The minimum down payment required from non-UAE nationals is 30% for properties above AED 5 million. For non-residents, some banks in the UAE will only finance up to 50% of the property value.
- Interest Rates: Different banks in the UAE offer different interest rates. Find out more about the advantages of flat interest rates versus reduced interest rates. However, you should expect a slightly higher interest rate than ex-pats in Dubai.
- Loan Tenure: For non-resident investors, banks may approve a shorter loan tenure depending on their profiles, compared to the maximum loan term for resident expatriates: 25 years. A bank may also restrict the age of the applicant during the tenure of the loan to no more than 65 years (salaried) or 70 years (self-employed).
In the UAE, which banks offer home loans to non-residents?
Mashreq and Dubai Islamic Bank are two banks that offer home loans to non-UAE residents. These banks have specific eligibility criteria that applicants must meet in order to qualify for a mortgage in Dubai for non-residents.