A mortgage is a loan from a bank that helps you purchase a home. You then pay the mortgage plus interest back in monthly Instalment over a set number of years.
Who can get a mortgage in Dubai?
Banks in the UAE can lend to:
Residents (UAE nationals & expats)
Non-residents
Salaried
Self-employed
How much can I borrow from banks in Dubai?
85% if you are UAE national 80% if you are non-UAE national 70% if the property is over AED 5 million 60% if you’re buying your second or third property.
Is there a salary requirement to get a mortgage in Dubai?
Most banks in the UAE require you to have a minimum monthly salary of AED 15k to qualify for a home loan, although some banks may consider applicants with a monthly salary of AED 10k.
What is a principle?
A principle is the amount you borrowed that you have to pay back without including interest.
What is a tenor?
A tenor is the life of a loan.
What is LTV Loan to Value?
Loan to value or LTV is the amount a bank will finance on the property you are purchasing.
What is Debt Burden Ratio (DBR)?
DBR is the ratio of debt burden income. It is used by banks to determine the credit eligibility of an applicant. DBR is calculated by an individual's monthly liabilities over their monthly income as a percentage.
What is No Objection Certificate (NOC)?
A NOC is a legal document that is required from the developer confirming that there are no outstanding service charges and/or fees regarding the property, allowing the transfer of ownership to happen.
How long can my mortgage be?
For salaried expats/non-residents the cap is 25 years or until the age of 65 For self-employed expats/non-residents the cap is 25 years or until the age of 70 For UAE nationals the cap is 25 years or until the age of 70.
Is it better to go directly to the lender?
When you are on your own, you will have to approach multiple lenders and go through the hassle, while wasting a lot of time. At fäm Mortgages we examine your case and determine the best outcome for you while taking advantage of our relationships with the banks.
What is the average mortgage rate in Dubai?
Mortgage interest rates vary from bank to bank. Rates are dependent on if you are salaried, self-employed, resident or non-resident. It can be as low as 1.79%+EIBOR and go up to around 5%.
What is EIBOR?
The Emirates Interbank Offered Rate (EIBOR) is the benchmark interest rate, stated in UAE Dirhams, for lending between banks within the United Arab Emirates market. EIBOR is calculated daily by the Central Bank of the UAE.
What is a security cheque?
Security cheques have to be given to the lender, which are used as a guarantee for the credit. The lender will ask you to provide multiple undated cheques for the full amount of the credit as a minimum. All UAE banks require a security cheque for any types of credit such as credit cards, personal loans, and mortgages.
What other fees are associated with buying a property?
You should typically set aside about 7% of the property price for Land Department, valuation, processing, and life insurance fees.
What is a valuation?
A valuation is done to assess the actual market value of the property. It is usually done by a third party company as instructed by the bank.
What happens if the valuation is short?
The bank will finance the MOU price or the valuation price, whichever is lower. If the valuation comes short, the client will have to cover the delta.
How much is the valuation cost of the property?
A property valuation may cost you from AED 1,800 - AED 3,150, depending on the bank.
Can the banks finance my property transaction fees?
Yes, it is legal for the banks to finance most of your property transaction fees through your monthly Instalment.
What is a pre-approval, and how long is it valid for?
A pre-approval is a pre-qualification from the bank for your mortgage. A pre-approval is valid for 60 days.
How long does a pre-approval take?
Once your full set of documents are received a pre-approval for a mortgage may take 3-5 working days for employed persons and 10 working days for self-employed applicants.
When do I need to get a pre-approval?
You should apply for a pre-approval before you search for a property.
How long does it take to get a mortgage?
A mortgage may take as little as three weeks from the pre-approval to the transfer of ownership. However, on average the process takes around 30-90 days from start to finish depending on the complexity of the purchase.
Do I need life insurance to get a mortgage?
Yes, life insurance is provided by the bank.
What is the maximum age to get a mortgage, and minimum?
The maximum age is 65 for salaried expats/non-residents and 70 for self-employed applicants as well as all UAE nationals. The minimum age to qualify for a mortgage is 21.
Can I get a mortgage for off-plan or under construction properties?
Yes, you are able to get a mortgage for off-plan or under construction properties. However, they are very limited to select projects and developers.
Can my housing allowance be factored in my mortgage eligibility?
Yes, your housing allowance can be factored in your mortgage as long as it is mentioned in your contract or pay slip.
Can bonus and incentives be factored into my mortgage eligibility?
Yes, depending on the company and industry you are in. It should also be included in your pay slip.
Can I get handover finance for off-plan?
Yes, you can get handover finance for off-plan projects. Pre-approval can only occur 60 days before handover.
What happens in case of death or disability?
In case of death, your life insurance is charged by the banks to cover the outstanding loan amount.
fäm mortgages is composed of a team of experts who have years of financial and banking experience in the UAE who are ready to help you get the home loan you deserve.
#1 Real Estate group in Dubai200+ Properties mortgagedAED 600m loan amount disbursed
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