Looking for an Expat Mortgage in Dubai? Read this!

Expat Mortgage in Dubai

Looking for an Expat Mortgage in Dubai? Read this!

Looking for an Expat Mortgage in Dubai? Read this!

With the high number of real estates and property development in Dubai, arriving at a decision on the perfect house that meets your needs and specifications may be a challenge

In order to arrive at the best decision on the property you are intending to buy, it is important that you carry out sufficient market research to determine what property is available in the market, the features and the costs involved. This can also be done by enlisting the services of a reputable real estate developer or agent. It is also very important that an expat home buyer visits the site and gets an idea of what the property is like especially when buying from a real estate developer. This is done for the purpose of confirming the property is developed already as there is a possibility of some developers selling a mere idea rather than a fully developed home. An expat mortgage property buyer should also be ready to pay an additional fee of about 2 to5 %, especially when engaging the services of real estate developer or agent. Recently the city of Dubai has realized heavy investment in property and real estates by local and foreign investors. With the issue of Freehold Decree in 2002 by Dubai’s crown prince, the city has attained rapid growth and development attracting foreign investors to trade in the real estate sector. This is unlike in the past when expats were reluctant in investing with Dubai’s real estate sector following a history violence and instability.  Today many foreign nationals buy houses, sell houses and lease at their own will. The foreign nationals willing to invest in real estate can now easily access expat mortgage Dubai. There are over 30 providers of mortgage in Dubai for expats offering a wide range of products at different expat mortgage rate. Most foreign investors in the real estate sector take up expat mortgages for buying property with the intention of leasing rather than for their individual home needs.

Expats investing in property for renting need to do a market search to identify the property that is more likely to give higher returns at the minimum expat mortgage rate. On the other hand, expat mortgage providers have to scrutinize the expat mortgage lender for their ability to pay back the loan amount. In order to find a suitable mortgage product with a lending institution, several factors will be put into consideration. The lending facility dealing with a mortgage in Dubai for expat will consider the factors listed below:

Personal income; the lending institution needs information on the amount and type of income earned by the lender applying for funding. To be eligible for an expat mortgage funding in Dubai, the minimum salary and length of service are some of the factors put into consideration under personal income to determine your eligibility for a house expat mortgage Dubai. Some facilities will also consider whether you are in contract or permanent employment or even whether you are on full time or part-time employment.

Current savings: expat mortgage providers will also keep a keen eye on the amount of savings you have made as this will greatly determine your ability to clear the loan amount promptly.

A number of assets you possess. They also make an assessment of the number and value of assets the anticipated homeowner has.


Lifestyle factors: The lending institutions will also put into consideration lifestyle factors such as the number of dependents you have. A high number of dependents may be interpreted that you have a lot of commitments with your finances and therefore reducing the likelihood to qualify for their mortgage products. They also consider your general living expenses to evaluate your ability to pay back the loan.

The mortgages lending facilities also try to establish whether an expat mortgage lender has other financial commitments before approving their application. They need information on your credit cards and other loans a lender may have.


Mortgage amount versus the value of the property. There has to be a close relationship between the loan amount you apply for and the value of the property you want to purchase.



Recently the banks in Dubai have undergone recession and therefore they have tightened the lending process reducing the coverage from up to 90% to as low as 20 to50 percent. In addition to the reduction in coverage, getting an approval for your mortgage request is somehow an uphill task. The region has a history of instability and therefore mortgage Dubai provider is cautious when giving out mortgages available for expats in Dubai. Some institutions need expat home buyers to provide collaterals before they can get approval for their mortgage requests.


Expat mortgage Dubai lenders need to present the following documents to the following lending agency. Passport and copies, Proof of residence, Proof of address, Salary certificates or evidence of regular income and three to six months Bank account statements


After getting approval for an expat mortgage Dubai, it is important to adhere to mortgage payment required to avoid penalties and inconveniences. Most mortgages are paid by use of monthly installments paid for up to 15 years. The longest mortgage payment duration is 25 years while the15 year repayment plan is the most common. It is a requirement that your mortgage amount should not exceed 35 % of your net monthly income. For expat mortgage Dubai lenders, the installments they pay together with other expenses must not exceed 35% of their net monthly income.

Other fees that need to be paid for the property in Dubai include the following:

Land registration and maintenance fees:

This must be paid in addition to miscellaneous expenses such as legal fees

In some cases, a legal fee that has been paid to the developer or the estate agent.

Roughly expats can expect to pay up to two percent on land registration fees for newly built property developments


A maintenance fee

A maintenance fee is charged to cater the upkeep of the gardens, walkways, building, and other shared facilities within the community. The amount can either be at a fixed rate or a rate varying depending on the size of the property.


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