How to get mortgage pre-approval in Dubai

• What is a Mortgage Pre-Approval
• Eligibility Criteria
• Documents Required
• How to Get Mortgage Pre-Approval
• FAQs

Dubai’s real estate market is booming. The options are endless, from the opulent beachfront homes in Palm Jumeirah to the centrally located Business Bay and Downtown Dubai apartments. However, the question is, should you buy property in Dubai with cash or take advantage of mortgage options? While purchasing property outright may seem attractive, a mortgage is the best choice for those on a tight budget. Let’s explore the details of obtaining mortgage pre-approval in Dubai to help you find your dream home without breaking the bank.

WHAT IS A MORTGAGE PRE-APPROVAL IN DUBAI?

Considering a mortgage in Dubai? Then, the first step is to get a pre-approval for the loan. Getting a mortgage pre-approval in Dubai means receiving a preliminary notification from your bank, indicating a possible loan amount they’re willing to lend.

However, it’s important to remember that it is not a legally binding commitment by the bank to lend the specified amount. Instead, it’s an evaluation of your financial position to confirm your eligibility for a loan. This step is crucial to meet the mortgage pre-approval conditions in Dubai. 

ELIGIBILITY CRITERIA FOR MORTGAGE PRE-APPROVAL IN DUBAI

Both UAE nationals and expats are eligible for a mortgage in Dubai. The eligibility criteria include proof of steady income and a good credit score. Banks in Dubai have a list of approved employers that help determine mortgage applicants’ eligibility. 

The applicant has to be at least 21 years old or above for a mortgage application. Banks have set up a maximum age criteria, which was removed by the Central Bank in 2019, but several banks still follow it.

The age limit for the last repayment is:

• 70 years for UAE nationals
• 65 years for expats (exceptions for self-employed individuals reaching 70 years of age)
• 65 years for non-residents

DOCUMENTS REQUIRED FOR MORTGAGE PRE-APPROVAL IN DUBAI

Salaried Individuals 

The following documents will be required if you are a salaried individual in Dubai looking to get a pre-approval:

• Valid Visa and passport. 
• Valid Emirates ID copy.
• Salary certificate for employment proof.
• Bank statement and payslips for the last six months.
• Disclosure of all liabilities such as credit card, personal loan or car loan payments.

Self-Employed Individuals

If you’re self-employed, here is the list of various documents required:

• Valid Visa and passport. 
• Valid Emirates ID copy.
• Valid Trade Licence copy.
• The last 2 years audited finances.
• Memorandum of Association (MoA) and incorporation documents.
• Disclosure of all liabilities, including credit card, personal loan or car loan payments.

Banks or mortgage lenders may require additional paperwork about your income and tax details. The documents required to get a mortgage pre-approval letter in Dubai may include the title deed or seller agreement documents.

HOW TO APPLY FOR A MORTGAGE PRE-APPROVAL IN DUBAI

GET IN TOUCH WITH A BANK OR A BROKER 

To get a mortgage pre-approval letter in Dubai, the first step is to contact a bank. Ensure the bank is registered under the Dubai Land Department (DLD) for a mortgage.

You can also seek the assistance of a licensed mortgage agent to initiate the pre-approval. A mortgage broker can help you focus on finding the right property and help you manage the entire process seamlessly. 

A broker will also be able to explain the different types of mortgage loans in Dubai. Pick the one that suits your payment requirements easily.

MAINTAIN GOOD CREDIT SCORE

Another important factor for mortgage pre-approval in Dubai is maintaining a good credit score. To get approved, it’s essential to keep a credit score check and reach a score of 620 to 740 or above for better rates.

There are several ways to increase your credit score if you have a low credit score. You can improve your credit score by paying bills on time, clearing existing dues and avoiding exceeding your credit limit.

AVOID SIGNING ANY SALES AGREEMENT

While you await your mortgage pre-approval, make sure not to sign any sales contract. Usually, a sales agreement requires a 10% deposit, which will not be refunded if you fail to secure financing for your property purchase. Moreover, there are several policies, agreements and other paperwork that you need to understand before securing a mortgage.

ADD A PROPERTY VALUATION CLAUSE

Another aspect to consider for the mortgage pre-approval checklist is to add a property valuation clause to a sales agreement. This clause acts as a safety net for your deposit if the lender decides not to finance your mortgage because the property’s value is lower than expected.

If the property doesn’t meet the bank’s required valuation, you won’t automatically lose your deposit because of this clause. Ensure the property is valued before signing the agreement to safeguard your interests further. 

GET A MORTGAGE PRE-APPROVAL LETTER

Getting a mortgage pre-approval letter is one of the major parts of the mortgage application process. After all the steps are complete, the letter is usually delivered within 3 to 5 working days to confirm your eligibility for a home mortgage.

It affirms that a lender is likely to approve your loan and outlines the maximum amount you’re allowed to borrow.

FAQs About Mortgage Pre-Approval in Dubai 

DOES BAYUT OFFER ASSISTANCE IN GETTING MORTGAGE PRE-APPROVAL IN DUBAI?

Bayut and ADCB have launched The Bayut-ADCB Dream Home Platform to help you get mortgage pre-approval and other steps needed to secure financing for your dream home.

HOW TO APPLY FOR THE PRE-APPROVAL THROUGH BAYUT-ADCB HOME SOLUTIONS?

Visit the official website for Bayut-ADCB Dream Home Solutions and click “Get Instant Pre-Approval” to start the application process.

CAN NON-RESIDENTS GET MORTGAGE IN DUBAI?

Yes, even if you are not a resident of the UAE, you can apply for non-resident mortgage in Dubai.

This concludes our guide to mortgage pre-approval in Dubai. Getting your home mortgage pre-approved is the first step to getting a home loan in one of the most popular places to live in the UAE.