Mortgage on real estate in Dubai

A mortgage on real estate in Dubai is a great way to become the owner of luxury real estate, even if you don’t have the full amount for the purchase of apartments or villas. The conditions for obtaining a mortgage for residents and non-residents differ, so it is important to understand the nuances so that the procedure is successful.

Mayak Real Estate company has been present in the real estate market for more than 10 years. The company’s employees know all the aspects of successful mortgage registration for the purchase of housing. If you decide to purchase an apartment on credit, it is best to contact experienced specialists.

Peculiarities of mortgage registration for foreigners

It is quite possible to get a loan to a foreign citizen from a bank in the United Arab Emirates. But the conditions of the mortgage will depend on the presence or absence of the legal status of a resident.
If you are a resident of the UAE, you can take out a loan in the amount of 80% of the total cost of housing. Non-residents have less favorable conditions: they can get a mortgage for 50% of the cost of an apartment or villa. Both in the first and the second case, the payment period is 25 years.

Banks’ requirements for mortgage borrowers

The bank imposes certain requirements on the borrower who wants to get a mortgage. They are quite simple:

• age from 21 to 65 years;
• high level of income — the borrower’s credit obligations should not exceed 50% of his monthly income. When deducting the monthly mortgage amount, each family member should have an income of at least $950/month;
• positive credit history — it can be earned in 6 months from the date of obtaining a resident visa;
• confirmation of the legality of the income received.

You can calculate whether your income is suitable for the above conditions with our specialist. This way you will immediately find out if there are chances of getting a mortgage and whether it is worth gathering all the documents.

Mortgage requirements for real estate

Every foreigner can apply for a mortgage on real estate in the UAE, but this applies only to secondary housing. You can choose an apartment in a house that has already been built or that is planned to be put into operation no more than 2 years after receiving the loan.

Another important requirement is that the object must be located in the so-called “freehold zone”.

Mortgage rates in banks

Foreigners can not get a mortgage in all banking institutions in the United Arab Emirates. With such a request, it is worth contacting such well-known and reliable structures as HSBC, Mashreq, and Emirates NBD. The bank may offer the borrower to take out a loan at a fixed or floating rate.

The mortgage rate in the UAE starts from 2.35%. As mentioned above, depending on whether you have a residence permit or you are a non-resident, the maximum loan amount changes. It can be from 50% to 80% of the total value of the property. The loan term is no more than 25 years.

List of documents for mortgage registration

If you are planning to buy an apartment or villa in Dubai or another emirate for a mortgage, you will need the following documents:

• a copy of the passport;
• a copy of the resident’s visa (if any);
• Emirates ID and its copy;
• documentary proof of solvency — it can be an official certificate from the place of work, which indicates the amount of salary, or an extract from a bank account;
• documents confirming the legality of income;
• the contract of sale of an apartment or other object;
• certificate of ownership.

Our specialists will check whether all the documents have been collected and whether they meet the official requirements. One of these is the translation of all papers into Arabic or English.

Registration procedure

The procedure for obtaining a mortgage for the purchase of real estate in the UAE is simple if you know the nuances. With the employees of Mayak Real Estate, you can pass it without nerves and with a successful outcome.

What stages are included in the registration of a mortgage on real estate:

1. Choose a bank. First, you need to study what offers there are and select the best option. Apply and wait for the result of checking whether you are suitable as a borrower. This stage takes about 2 weeks.
2. If the bank has approved your candidacy, you are given 2 months to find a suitable apartment or villa. You also need to collect documents for real estate. It can take a couple of weeks or 1.5 months.
3. When an object that meets the requirements and suits the buyer with its characteristics is found and booked, it is necessary to sign a purchase and sale agreement, register the transaction and obtain a certificate of ownership. All these documents are transferred to the bank.
4. Discuss the terms and, if everything suits you, sign the contract at the bank. The procedure is simple and takes 1 day.
5. Pay the initial payment on the loan. The insurance of the real estate object is also carried out. These steps take 1 day.

Further, all that is required from the owner of an apartment or house is to make mortgage payments in full and on time.

It is much easier to go through all the stages — from choosing a bank to signing a contract — with a qualified manager of a real estate agency. Mayak Real Estate has experience of 10 years in the field and provides full legal and accounting support for each transaction.