While foreigners can work, live and own property in the cosmopolitan city of Dubai, applying for a mortgage as an expat can be daunting. There are many regulations to take into account before you start filling out your application with one of the available banks and loan providers in Dubai.
This guide will cover some important points foreign nationals should consider when securing a mortgage in Dubai. We’ll also explain the types of documents necessary and explore which lenders offer funding options designed just for expats.
Can non-residents of Dubai secure a mortgage loan?
Yes, Dubai non-residents can secure a mortgage loan. Whether you are looking to add Dubai real estate to your portfolio or want a holiday home, you can absolutely get approved for mortgages in the area as a foreign investor.
Keep in mind that non-resident foreign investors have limited property loan options as compared to UAE citizens and expats. Additionally, it is essential to be educated on the various mortgage types available in Dubai prior to making a decision.
Before applying for a Dubai mortgage as a non-resident, ensure you meet all the requirements. To be eligible for a non-resident mortgage, you must be:
- Employed or self-employed with a steady income.
- A citizen of one of the countries on the bank’s list.
- Equipped with a valid residence permit or visa in accordance with Dubai’s regulations.
- Comply within set age limits for applicants that seek to acquire a non-resident mortgage in Dubai.
- Meeting the minimum monthly income stipulated by the respective financial institution.
Certain that the property you are willing to invest in falls in your bank’s approved list of property developers and projects.
Applying for mortgage loans as a non-resident is no easy feat, and you’ll need to provide specific documents in order to complete the process. Keep in mind that other paperwork may be requested depending on the type of property being bought and its related terms.
Generally, foreign applicants must provide the following documents for their home loan in Dubai to be approved:
- A valid passport is a mandatory document in order to prove your identity
- Recent financial bank statements for the past 3 to 6 months.
Additionally, Obtaining a mortgage for non-residents in Dubai may require extra paperwork, including
- Tax returns
- Salary certificates or payslips for employed as well as self-employed
- Obtaining a trade license and submitting audited financial statements
- Details of any existing debts
Are you a non-UAE resident looking for a bank to provide home loan services?
If you’re not a UAE citizen, consider these banks for your home loan needs:
- Dubai Islamic Bank
- HSBC Bank
- Abu Dhabi Islamic Bank
- First Abu Dhabi Bank
- Emirates Islamic Bank
- Ajman Bank
- Standard Chartered
- Abu Dhabi Commercial Bank
Please be aware that you must meet the eligibility criteria set by these banks to get your mortgage application approved.
Benefits of home loans for non-residents in UAE
Non-residential home loans usually have different features than regular residential mortgages and can vary depending on the lender and type of property loan chosen by the borrower. Some features may include:
Lower down payments
Some lenders may require a smaller down payment than other traditional mortgage lenders, making it easier for non-resident borrowers to afford their homes without having to worry about coming up with a large sum all at once.
Flexible mortgage repayment terms
Depending on the chosen lender, repayment terms could be flexible, such as longer amortisation period, cost, or deferred payments until the borrower has more stable income or assets.
Many lenders offer lower interest rates than traditional mortgages since they are more willing to take risks with non-resident borrowers who may need better credit scores or income levels. This can help keep costs down and make owning a home more affordable for those living abroad.
Many lenders will tailor their packages specifically for non-resident borrowers by taking into account their unique circumstances, such as how long they plan on staying in Dubai or if they will use the property as an investment only. This helps ensure that borrowers get exactly what they need from their loan rather than being stuck with something that doesn’t meet their needs.
Securing a mortgage as a foreign investor in Dubai can be easy if done right. All it takes is careful research into the available options. Get your finances in order first and find the right lender with competitive rates and terms that fit your budget. With these tips on securing a mortgage as a foreign investor in Dubai, we hope we have been able to provide guidance on this complex process!
At Emortgage UAE, Our Real Estate Agents are dedicated to helping you find the right mortgage solution for your unique situation. We believe in providing our customers with efficient advice and services at a reliable purchase prices that makes their financial dreams a reality. We offer tailored packages to match each individual’s needs. Contact us today to learn more about home loans for non-residents in UAE!