How to Get a Mortgage in Dubai?

Becoming a first-time homebuyer is an exciting journey, and in the vibrant real estate market of Dubai, the prospect is even more enticing. One crucial step on this path is securing a mortgage.

With Sire Finance’s guide, we’ll walk you through the essential steps and insights to help you navigate the home-owning process seamlessly.

Who can qualify for a mortgage in Dubai?

Certain criteria must be met for obtaining a home loan. To apply for a mortgage in Dubai, individuals must meet the following conditions:

1. UAE nationals or Resident

Applicants must be either UAE nationals or residents to be eligible for a home loan in Dubai.

2. Non-Resident and Expats

Little known to many, Dubai offers accessible mortgages for citizens worldwide, including those from the USA, Australia, France, and beyond. This dispels the misconception that property ownership in Dubai is exclusive to residents or individuals in the UAE or the Middle East. Investors outside Dubai can qualify for mortgages, empowering individuals globally to explore the city’s real estate market.

3. Age Bracket

Prospective homebuyers need to fall within the age range of 21 to 65 to qualify for a mortgage.

4. Income Requirement

For salaried individuals, a minimum monthly income of AED 15,000 is necessary, while self-employed applicants should have a monthly income of AED 25,000.

It’s crucial to note that the minimum salary requirement can vary among banks. Some institutions, for instance, may permit UAE nationals with a monthly income as low as AED 8,000 to apply for home loans in Dubai. However, this is contingent on the specific policies of each bank.

For non-residents seeking mortgage options in Dubai, the choices available are somewhat limited. But with Sire Finance’s expert broker help, non-residents can be catered to – expanding their investment opportunities in the city.

It’s important to be aware that banks may impose additional criteria for mortgage eligibility. This could encompass factors such as the minimum tenure served at the current job or employment with specific employers, among other considerations.

Hence, prospective borrowers should be attentive to the unique requirements set forth by each financial institution when seeking a mortgage in Dubai.

How does a mortgage work in Dubai?

Rather than delving directly into the detailed steps, it’s essential to first recognize that your monthly mortgage payment isn’t a singular entity. Instead, it can be likened to being divided into four distinct allocations, each serving a specific purpose.

These allocations are designated as Principal, Interest, Taxes, and Insurance.

• Principal. The principal amount is the segment of your payment dedicated to gradually owning your home. Paying it is like slowly paying off the total amount you borrowed.
• Interest. Interest is the cost of borrowing money. It’s what you pay to your lender for using their funds to buy your home. In the beginning, a big chunk of your payment goes to cover this cost.
• Taxes. Each month, some of your payment goes toward covering your yearly property taxes. The amount depends on your home’s value and the local tax rate.
• Insurance. Lenders ask you to have insurance to protect your home from things like fire or theft. Depending on your down payment or loan type, you might also have a separate payment for mortgage insurance.

What documents are required to obtain a home loan in Dubai?

To secure a home loan in Dubai, the following documents are essential:

Identification Documents

• Passport copy
• Emirates ID (for residents)
• Visa copy (for non-UAE nationals)

Proof of Income

• Salary certificate or employment contract
• Pay slips (typically covering the last 3 to 6 months)
• Bank statements showing salary credits
• Proof of additional income (if any)

Employment Verification

• Employer’s letter confirming employment and position
• Proof of job stability (tenure at the current job)

Credit History

• Credit report (issued by the Al Etihad Credit Bureau or other relevant credit reporting agencies)

Property Documents

• Sale and purchase agreement or reservation agreement for the property
• Property valuation report

Down Payment Proof

• Evidence of the down payment made (bank statements or transaction records)

Liabilities and Debts

• Details of existing loans and liabilities
• Credit card statements

Property-related Fees

• Proof of payment for property-related fees (registration fees, agent commissions, etc.)

Business Owners or Self-Employed Individuals

• Trade license and company financial statements (for business owners)
• Proof of income for self-employed individuals

Property-related Insurance

• Home insurance details, if required by the bank

How to Get Mortgage in Dubai

So how do you get a mortgage in the City of Dubai?

STEP 1: Find a lender

Research and compare the mortgage offerings of various banks and financial institutions. Consider factors such as interest rates, loan terms, and customer reviews to ensure you choose a lender that aligns with your financial goals.

STEP 2: Choose the right mortgage for you

Once you’ve identified potential lenders, the next crucial step is selecting the right mortgage product. Different mortgages come with varying interest rates (fixed or variable), terms, and conditions. Evaluate your financial situation and future plans to choose a mortgage that suits your needs.

Factor in your monthly budget and long-term financial goals during this decision-making process.

STEP 3: Get a pre-approval letter

Getting pre-approved for a mortgage is a strategic move before delving into house hunting. Submit the necessary documents, including proof of income, employment details, and credit history, to your chosen lender.

A pre-approval letter not only helps you understand your budget but also enhances your credibility as a serious buyer in the eyes of sellers.

STEP 4: Find your dream home

Armed with a pre-approval letter, you can now confidently begin your search for the perfect home in Dubai. Utilize real estate platforms like Sire Financial to explore a wide range of properties directly from sellers and landlords.

Narrow down your options based on your preferences, budget, and desired location. Take the time to visit potential homes and envision your future in each space.

STEP 5: Finalize your property purchase

Once you’ve found your dream home, it’s time to finalize the property purchase. Work closely with your lender to complete the necessary paperwork and initiate the mortgage approval process. Ensure all required documents are submitted, including property-related agreements and valuation reports.

With Sire Finance, you can benefit from a transparent and streamlined property-purchase process.

Your Home Ownership Journey, Simplified by Sire Finance

Securing a mortgage and finding your dream home in Dubai is a thrilling journey, and Sire Finance is your trusted partner every step of the way.

Our platform streamlines the process, connecting buyers like you directly with sellers and providing transparent listings. From finding a lender to finalizing your property purchase, Sire Finance ensures a seamless experience.

Your dream home is within reach.