Do Expats need a Local Sponsor to apply for a Mortgage in Dubai?

Do Expats need a Local Sponsor to apply for a Mortgage in Dubai

Do Expats need a Local Sponsor to apply for a Mortgage in Dubai?

If you’re an expat wanting to purchase property in Dubai through a mortgage, it’s possible. However, there are some essential requirements to meet. These include having a good credit score, a stable income, and the ability to make a down payment. You’ll also need to provide financial documents and proof of your address.

Collaborating with a Dubai mortgage broker or lender specialising in assisting expats is often a wise choice. They have the expertise to guide you through the process effectively.

Property aquirement options in the UAE

Before delving into the intricacies of mortgages in Dubai, it’s essential to understand the housing landscape. Expats typically have two main options when it comes to accommodation: rental properties and purchasing real estate.

  1. Rental Properties: Renting is popular among expats, offering flexibility and convenience. It allows you to enjoy the city’s amenities without the long-term commitment of homeownership. Monthly income is crucial in determining the type of property you can afford.
  2. Purchasing Real Estate: On the other hand, owning your property in Dubai can be a dream. Property prices in Dubai vary depending on location, property size, and type. Expats can buy properties in designated areas, but the rules and regulations must be carefully considered.
Mortgage for local sponsers in dubai UAE - eMortgage

How can an expats apply for a mortgage?

Expats can apply for a mortgage in Dubai by following these general steps:

  1. Find a Mortgage Provider: Start by researching and identifying mortgage providers that work with expats. eMortgage specializes in assisting expatriates.

  2. Check Eligibility: Review the eligibility criteria of the mortgage provider. This typically includes factors like a minimum income, credit score, and the amount of the down payment you can make.

  3. Gather Documents: Prepare the necessary documents, such as proof of income, bank statements, and identification documents. Some of them require address proof.

  4. Credit Check: Lenders will assess your creditworthiness, so ensure your credit score is in good shape.

  5. Choose a Mortgage Plan: Work with the provider to select a mortgage plan that suits your financial situation and goals. This includes deciding on the loan term, interest rate, and type of mortgage.

  6. Property Selection: Find the property you want to purchase. The cost, location, and property type will influence your mortgage application.

  7. Down Payment: Make the required down payment. You need to pay This portion of the property’s price upfront.

  8. Application Submission: Complete the mortgage application and provide all necessary documents to the lender.

  9. Approval Step: Review your application and documents by the lender. You’ll receive a mortgage offer if you meet the criteria and are approved.

  10. Legal Process: Finalize the legal aspects, such as signing the mortgage agreement and transferring property ownership.

  11. Monthly Payments: Once the mortgage is approved, make your monthly payments as agreed in the terms.

Which Mortgage is the best option for expats?

In Dubai, there are various types of mortgages available for expats. These mortgage options cater to different needs and financial situations. Here are some common types:

  1. Fixed-Rate Mortgage: With a fixed-rate mortgage, the interest rate stays the same for the entire loan term, giving you stable and predictable monthly payments.
  2. Variable-Rate Mortgage (Adjustable-Rate Mortgage): In this type, the interest rate can change periodically. It might start with a lower rate but can fluctuate, impacting your monthly payments. Expats should consider their risk tolerance when choosing this option.
  3. Interest-Only Mortgage: With an interest-only mortgage, you pay only the interest on the loan for a set period, typically the initial years of the mortgage. This can result in lower initial payments but requires you to repay the principal later.
  4. Islamic Mortgage: In compliance with Islamic finance principles, Islamic mortgages do not involve interest. Instead, the lender and borrower enter into a joint venture, sharing the property’s profits or losses.
  5. Off-Plan Mortgage: This type of mortgage is designed for purchasing properties that are still under construction or not yet built. The loan is distributed in increments as the construction advances.
  6. Buy-to-Let Mortgage: Expats looking to invest in rental properties can consider buy-to-let mortgages. These are designed for purchasing rental properties. Get your piece of the property pie and rent the rest.
  7. Equity Release Mortgage: This allows homeowners to release equity from their property without selling it. Expats already owning property in Dubai can use this to unlock some of their property’s value.
  8. Shared Ownership Mortgage: Shared ownership mortgages are suitable for expats who cannot afford to buy a property outright. You purchase a share of the property and pay rent on the rest.
  9. Non-Resident Mortgage: These mortgages are specifically designed for non-residents, including expats. They often have different eligibility criteria and terms.
  10. Expat-Focused Mortgages: At eMortgage, we offer mortgages tailored for expatriates. These mortgages consider the unique financial circumstances and requirements of expats living in Dubai.

It’s essential for expats to carefully consider their financial situation, future plans, and risk tolerance when choosing a mortgage type.

Mortgage for local sponsers in dubai - eMortgage

How have Dubai's Evolving Visa Rules Benefited Expats and Real Estate Investors?

Dubai’s evolving visa rules have become a game-changer for expats and real estate investors alike. Introducing the Golden Visa and 10-year visa schemes has opened new horizons for foreign ownership and long-term residency in the UAE.

Expats seeking to invest in the vibrant Dubai property market can now secure extended residency with these visas, eliminating the need for frequent renewal of entry permits or tourist visas. This not only brings stability to their residential status but also encourages foreign investment in both residential and commercial properties, offering a win-win scenario for those looking to capitalize on Dubai’s flourishing real estate market.

What Changes in Residency Procedures are Attracting Foreign Talent and Investment in Dubai?

Moreover, the ease of acquiring a residence permit has attracted foreign investors to Dubai’s private sector. The opportunity to diversify one’s financial services, open a bank account, and obtain a debit card has made it more convenient for expats and real estate investors to manage their finances. With such favourable visa rules, the once complex process of securing a residence permit is simplified, attracting expats who can contribute to Dubai’s economy through their annual revenues and investments.

These changes reflect the UAE’s forward-thinking approach to creating an inviting environment for expatriates, who can now enjoy long-term stability, healthcare access, and educational opportunities for their families, including enrolling their children in reputable secondary schools.


Dubai’s real estate market is now more accessible to expats, thanks to evolving visa rules and tailored mortgage options. Local sponsors are no longer required, simplifying the mortgage process. Introducing Golden Visas and 10-year visas provides long-term residency, attracting foreign talent and investment.

These changes make it easier for expats to invest in Dubai’s dynamic property market while enjoying a stable and prosperous life in the city. Dubai’s welcoming environment continues to appeal to expats, offering opportunities and a high quality of life.