Guide to mortgage loans for non-resident investors in Dubai
- Can Non-Residents Get a Mortgage?
- Eligibility Criteria
- Required Documents
- Features
- Banks Offering Non-Resident Mortgages
- FAQs
Thanks to affordable prices and lower interest rates, both local and overseas investors have been eyeing Dubai’s diverse real estate market. Through the “mortgage in Dubai for non-residents” option, those living abroad can purchase property in the city without straining their finances.
If you’d like to learn more about who is eligible for non-resident home loans in Dubai and how such mortgages work, you can get all the answers in our guide below.
Is it possible to get a mortgage in Dubai for non-residents?
Yes, overseas investors who want to purchase a property in Dubai to add to their real estate portfolio, or as a holiday home, can certainly get a mortgage. You’ll enjoy various benefits as an investor with a mortgage in Dubai for non-residents, including high loan amounts and increased flexibility.
However, it’s important to know that non-resident foreign investors have limited options for property loans as compared to UAE citizens and expats. Besides, it’s also essential to know about Dubai property mortgage types before proceeding.
Which overseas investors are eligible to get a home mortgage in Dubai?
Before you apply for a mortgage in Dubai for non-residents, make sure you meet the eligibility criteria.
Note that these criteria are a general rule of thumb and may differ between banks in the UAE.
- You may have to be a citizen of a country that is on the bank’s list before applying for a non-resident home loan in Dubai.
- You must be a salaried or self-employed individual to apply for a non-resident mortgage.
- Some banks also have age restrictions for applicants seeking a non-resident mortgage in Dubai. For instance, ADCB requires non-resident applicants to be above the age of 21 years to apply for a home loan.
- You will also need to meet the bank’s minimum monthly income requirement; this can differ between UAE expats and non-residents. Additionally, this minimum income requirement must be met post tax deductions. For example, ADCB requires expatriate residents to have a monthly income of at least AED 15,000 (post-tax) to qualify for their mortgages.
- Some banks also have a list of approved property developers and projects for mortgage financing. You must make sure that your property falls under this approved list before applying for a non-resident mortgage loan in Dubai.
What are the documents required for mortgage loans for non-UAE residents?
When applying for mortgage loans for non-residents, you will need to submit certain documents. Remember, there may be additional documents required based on the property you’re purchasing as well as the terms of the transaction.
In general, non-resident applicants will have to submit the following documents for home loans in Dubai:
- Valid passport (as proof of identity)
- Bank statements (for the last 3 to 6 months; as proof of funds)
You may be asked to produce additional documents to get a home loan for non-residents in Dubai, such as:
- Tax returns (if applicable)
- Salary certificates or payslips (if you are a salaried individual)
- Trade licence and audited financial statements (if you are self-employed)
- Details of any existing loans
Features of home loans for non-residents in Dubai
There are features of home loans for non-residents in Dubai, details of which are as follows:
- Maximum Loan Amount: This will differ based on the bank as well as your financial circumstances. For instance, while Mashreq finances up to AED 10 million, ADCB is willing to finance up to AED 15 million.
- LTV ratios: According to the UAE Mortgage Law, non-UAE nationals are required to put up at least 20% of the property purchase price as a down payment (for first-time buyers), if the property is worth up to AED 5 million. For properties above AED 5 million, the minimum down payment required from non-UAE nationals is 30%. However, some banks in the UAE only finance up to 50% of the property value for non-resident applicants.
- Interest Rates: Some banks in the UAE offer different interest rate options. Learn more about the benefits of flat vs. reduced interest rates for further clarity. However, you can expect a slightly higher interest rate than that for expat residents in Dubai.
- Loan Tenure: While the maximum loan tenure for resident expatriates is 25 years, banks may approve a shorter tenure for non-resident investors, depending on their profiles. Additionally, banks may have a restriction that the age of the applicant must not exceed 65 years (salaried) or 70 years (self-employed) during the tenure of the loan.
Which banks in the UAE offer home loans for non-UAE residents?
Banks that offer home loans for non-UAE residents include:
- Dubai Islamic Bank
- HSBC
- Abu Dhabi Islamic Bank
- First Abu Dhabi Bank
- Emirates Islamic Bank
- Ajman Bank
- Standard Chartered
- Abu Dhabi Commercial Bank
Please note that these banks have specific eligibility criteria that applicants have to meet to qualify for a mortgage in Dubai for non-residents. With some due diligence and research, you can find the best mortgage loan in Dubai as per your circumstances.
FAQS ABOUT DUBAI MORTGAGE FOR NON-RESIDENTS AND MORE
Can foreigners get a mortgage in Dubai?
Yes, both expatriate residents and non-resident investors can obtain a mortgage to finance their property purchases in Dubai. However, the LTV ratios for foreign investors will differ from those for UAE nationals.
Is it easy to get a mortgage in Dubai?
If you meet the eligibility criteria of the bank, getting a mortgage loan in Dubai can be a relatively straightforward process. Make sure to get a mortgage pre-approval before beginning your search for a property so you know your budget beforehand.
If you’re looking for expat mortgages in Dubai, check out the ADCB Dream Home Solutions, which allows you to get instant and free pre-approval online.
Can I leave the UAE with a mortgage loan?
It is possible to leave the UAE with outstanding mortgage debt. You will need to inform your bank, which will likely amend the terms and interest rate of your mortgage and convert it into a non-resident mortgage. In certain circumstances, the bank may ask you to settle the mortgage in full before leaving the UAE. You could choose to sell the property or refinance it through a different lender in such situations; however, you will be subject to an early settlement fee.
As you can see, overseas investors keen to buy property do have the option of obtaining a mortgage for non-residents in Dubai. If you’re debating whether to take out a mortgage, here’s our guide to buying a property with cash vs mortgage.
However, bear in mind that as a non-UAE or GCC national, you are bound by the UAE’s property ownership rules for foreigners. Foreign investors can buy property in designated freehold areas such as Dubai Marina, Downtown Dubai and Palm Jumeirah. Read up on our guide to foreigners buying property in Dubai to better understand the benefits and types of properties you can purchase.
As an overseas investor, you can also employ the services of property management companies to find the right tenant to lease out your property, collect rent and provide regular performance updates. If you are searching for a property, look at freehold areas in Dubai.
Are you thinking of investing in property in Dubai? Learn more about how to buy real estate in Dubai.
