Thinking of buying property in Dubai? Wondering if you can get a mortgage? Yes, you can secure up to 60% funding of the property value based on your income in your home country. To be eligible for a mortgage, the Central Bank of the UAE requires you to have a stable income with a minimum average monthly balance equivalent to AED 25,000 for the last three months. The legalities and regulations surrounding property ownership in the UAE can seem like a maze, with various rules on eligibility, documentation, and processes that might not be immediately clear. We’re here to cut through the confusion, offering straightforward tips to tackle these challenges head-on.

Insider Tips: Securing A Dubai Mortgage As A Non-Resident

  1. Get Pre-Approval First: Before you start house hunting, obtain mortgage pre-approval from a bank. This not only gives you a clear idea of your budget but also makes you a more attractive buyer to sellers, as it shows you are serious and financially prepared.
  2. Understand the Total Cost of Ownership: Beyond the mortgage, factor in all other costs associated with owning property in Dubai, such as maintenance fees, utility costs, property insurance, and the Dubai Land Department’s 4% registration fee. These can add up and impact your overall budget.
  3. Explore Mortgage Options Thoroughly: Banks in Dubai offer a variety of mortgage products tailored to different needs, including fixed-rate, variable-rate, and interest-only mortgages. Spend time understanding these products and choose one that aligns with your financial situation and risk tolerance. It is best to consider consulting with a mortgage consultant in Dubai for personalised advice.
  4. Build a Strong Financial Profile: Banks favour applicants with a stable income, a healthy bank balance, and a good credit history. Before applying, reduce existing debts and avoid large purchases that could affect your debt-to-income ratio.
  5. Save for a Substantial Down Payment: The UAE Central Bank requires non-residents to provide a minimum down payment of 40%. Saving for a larger down payment than the minimum can reduce your loan amount and interest payments over time.
  6. Research the Property Market: Dubai’s property market can be volatile. Study market trends, understand which areas are gaining value, and consider the type of property that suits your lifestyle and investment goals. Location, infrastructure, amenities, and future development plans can all impact property value.
  7. Legal Due Diligence: Ensure the property you’re interested in is free from disputes and that the developer has a solid track record. Verify the title deed and other legal documents to ensure everything is in order. 
  8. Plan for the Future: Consider your long-term commitments and how they align with owning property in Dubai. If there’s a chance you might leave the UAE, think about the property’s rental yield or resale value as part of your exit strategy.
  9. Stay Informed about Changes in Regulations: The UAE’s regulations around expat property ownership and mortgages can evolve. Stay updated on any changes that might affect your mortgage terms, property value, or ownership rights.

Final Thoughts

For non-residents, buying properties in Dubai is not just about navigating the present but strategically planning for a future that may hold unexpected turns. Beyond the practicalities of mortgages and market research lies the importance of flexibility and foresight. 

Will your property serve as a long-term home, a rental investment, or a stepping stone in your global journey? With these considerations in mind, you’re not just buying a property; you’re investing in your future. 

For those ready to take the next step, My Mortgage offers tailored mortgage solutions that understand the nuances of expat property purchases in Dubai. Our expertise and personalised approach can help transform your property dreams into reality, ensuring a smooth and informed journey into the heart of Dubai’s real estate market.