Requirements For a Self-employed Applicant

Requirements for Self-Employed Applicants

Nationals (Emiratis)

• running their business for at least 2 years
• Good credit history is necessary
• Minimum monthly income considered by many banks starts from AED 25,000 self-paid salary or AED 3,000,000 annual turnover
• Maximum 50% of income dedicated to repayment
• Some banks only offer loans to employees from well-established institutions or government departments
• Deposit starting from 20% (15% with national Islamic funding options)
• Up to 25 years loan term
• Between 21 and 70 years old
• Latest salary certificate (30 days old or less)

Pre-approval documents required:

• Passport
• Emirates ID
• Valid Trade License copy
• MOA (Memorandum of Association) including all amendments
• Audited financials from the last 2 years
• Company bank statements from the last 6 months
• Personal bank statements from the last 6 months

Property documents: 

• A completed mortgage application (we’ll help you with that!)
• A copy of the Title Deed with a floor plan
• A signed purchase contract (Form F + MOU*)
• An NOC (non-objection certificate)
• Copy of valid facility approval*

** Memorandum of Understanding (property purchase conditions)** For government-funded options, such as: Sheikh Zayed Housing Program (SZHP), Mohammad Bin Rashid Housing Establishment (MBRHE) and Sharjah Housing Program (SHP)

 

 

Ex-patriots (foreign nationalities resident in UAE)

UAE expats, while foreigners, are still considered residents of the UAE, and have eligibility conditions very similar to UAE nationals, with some minor differences.

• running their business for at least 2 years
• Good credit history is necessary
• Minimum monthly income considered by many banks starts from AED 25,000
• Maximum 50% of income dedicated to repayment
• Some banks only offer loans to employees from well-established institutions or government departments
• Deposit starting from 20% (15% with national Islamic funding options)
• Up to 25 years loan term
• Between 21 and 70 years old

Pre-approval documents required:

The documentation required for pre-approval also has some differences compared to the requirements for UAE nationals:

• Passport
• Emirates ID
• Valid Trade License copy
• MOA (Memorandum of Association) including all amendments
• Audited financials from the last 2 years
• Company bank statements from the last 6 months
• Personal bank statements from the last 6 months

Property documentation:

• A completed mortgage application
• A copy of the Title Deed with a floor plan
• A signed purchase contract (Form F + MOU*)
• An NOC (non-objection certificate)
• Copy of valid facility approval**

* Memorandum of Understanding (property purchase conditions)
** For government-funded options, such as: Sheikh Zayed Housing Program (SZHP), Mohammad Bin Rashid Housing Establishment (MBRHE) and Sharjah Housing Program (SHP)

 

 

Non-Residents (foreign investors not living in UAE)

Eligibility conditions for non-residents in the UAE are a little different compared to those for nationals and expats.

• Running their business for at least 2 years
• Good credit history is necessary
• Minimum monthly income considered by many banks starts from over USD 816,000 in annual turnover.
• Maximum 50% of income dedicated to repayment
• Deposit starting from 20% (15% with national Islamic funding options)
• Up to 25 years loan term
• Between 21 and 65 years

Pre-Approval Documents

The documentation for pre-approval and final approval also has some differences compared to the requirements for UAE nationals and expats.

• Passport (all pages)
• Local ID
• Overseas residential proof of address (e.g latest utility bill)
• Document of company establishment
• MOA (Memorandum of Association) including all amendments
• Audited financials from the last 2 years
• Company bank statements from the last 6 months
• Personal bank statements from the last 6 months
• Copy of Chamber of Commerce Registration
• Copy of Labor Contract/ Employee’s Contract

Property documentation:

• A completed mortgage application (We will assist you with that)
• A copy of the Title Deed with a floor plan
• A signed purchase contract (Form F + MOU*)
• An NOC (non-objection certificate)
• Copy of valid facility approval**
• Proof of down payment (Manager’s check)

* Memorandum of Understanding (property purchase conditions)

** For government-funded options, such as: Sheikh Zayed Housing Program (SZHP), Mohammad Bin Rashid Housing Establishment (MBRHE) and Sharjah Housing Program (SHP)

 

In addition to eligibility criteria there are certain documents that each bank requires, in order to process a loan. Banks need these documents in order to verify a borrower’s identity, residency, employment status, and financial situation. This helps them determine whether the client is trustworthy, and capable of repaying a large property loan. There are different requirements for pre-approval and final approval.

To apply for a mortgage directly, you would need to visit multiple banks in person and submit the documentation physically, or through a local attorney (lawyer.) To save yourself time, money, and stress, contact us to have a professional and experienced mortgage broker from Sire Finance to do this for you. This significantly expedites the process. We have mortgage experts ready to help you find the best home loan option and the best mortgage rates in UAE, and to guide you through the entire application process. Contact us or apply now to start an application process.

 

Documents Required to Apply for a Mortgage in Dubai as a Self-Employed Applicant

The kinds of documents required to apply for a mortgage in Dubai could vary slightly from one bank to another, but generally, you will need to provide the following documents:

1. Passport and Emirates ID: As a foreigner/ expatriate, your passport and Emirates ID are essential documents when applying for a mortgage in Dubai. These documents verify your identity and residency/ visa status.
2. Bank Statements: Lenders require your bank statements to assess your financial stability and repayment capacity. Generally, they request the latest six months’ worth of statements, but this may vary between lenders.
3. Income Documents: To verify your income as a self-employed individual, you will need to provide company establishment documents, such as trade certificate and MOA, and show at least 6 months of personal bank statements.
4. Property Documents: If you’ve already found a property you want to purchase, the lender will likely request property-related documents such as the sales and purchase agreement, the title deed, and floor plans. These documents help validate the property and its value. However for pre-approval this is not yet required. It will be required after pre-approval when you finalize the property to move forward with activating the home loan.
5. Other Supporting Documents: Additional documents may include proof of address, utility bills, credit card statements, and any other financial obligations or assets you possess. Always consult with your broker or lender to ensure you have all the required documents before submitting your application, to avoid delays, complications, or potential decline.

 

Eligibility Criteria for Obtaining a Mortgage in Dubai for Self-Employed

Here are the eligibility criteria for obtaining a mortgage in Dubai:

1. Age: Applicants must be at least 21 years old to apply for a home loan and must complete their payments by the legal retirement age – 65 years for salaried individuals, 70 for self-employed/ self-supported.
2. Income: To be eligible for mortgages, expat residents and UAE nationals must be able to demonstrate a stable income and have a good credit rating. Minimum monthly salary requirements are typically $1,900 (AED 7,000) for UAE Nationals and $2,700 (AED 10,000) for expats. Remember, lenders assess your income stability to determine your ability to repay the mortgage. Generally, they require a minimum of six months’ employment with the same employer, although some lenders may require longer. You must prove your suitability as a borrower.
3. Credit History: Your credit history plays a crucial role in determining your mortgage eligibility. Lenders review your credit score and credit reports to assess your financial responsibility and past repayment behavior. If you have had credit issues in the past, it may affect your ability to be approved. Speak to one of our professional UAE home loan brokers to discuss your options.
4. Debt-to-Income Ratio: Lenders calculate your debt-to-income ratio by comparing your monthly debt obligations to your monthly income. A lower ratio indicates a higher chance of mortgage approval, as it reflects your ability to manage your financial obligations.
5. Nationality: UAE nationals and residents are eligible for mortgages in Dubai. Non-residents are eligible too now, but the process will differ slightly, and may take slightly longer due to document requirements. Our expert brokers can assist you with this process, and help you secure a low-document foreign investment mortgage to purchase a UAE property.
6. Employment: Some lenders may have specific requirements for expats, such as minimum income levels, residency status, or length of employment in the UAE.
7. Property type: Banks will typically finance any ready property in Dubai that has a title deed. When it comes to off-plan or under construction properties, banks may limit which developers they are willing to finance. In general, banks will finance residential villas and apartments for all applicants, but will only finance plots of land and farms for UAE Nationals (Emiratis).
8. Documents: To apply for a mortgage in Dubai, you will need to provide documents such as a copy of your visa and passport, a copy of your Emirates ID, a salary certificate for proof of employment (or proof of company registration), and proof of residence (copy of tenancy contract or DEWA bill).

Please note that banks may have additional requirements for mortgage eligibility, such as minimum period served at the current job, or working for a certain set of employers, whether an employer is listed or non-listed etc.

 

Maximum Loan Amounts for Properties in Dubai, Abu Dhabi and UAE

The maximum loan amount that can be obtained for a property in the UAE may vary from Emirate to Emirate. In Dubai, the maximum loan amount depends on various factors such as the applicant’s income, nationality, and the property’s value. Here the maximum loan amount refers to the highest sum a lender is willing to lend you based on certain factors, such as the property’s value and the loan-to-value ratio.

1. Maximum Loan-to-Value Ratio (LTV): The maximum LTV is 80% for expats and 85% for UAE nationals for properties under AED 5 million. For properties over AED 5 million, this decreases to 70% LTV for expats and 75% for UAE nationals.
2. Regulations and Guidelines: Each Emirate has its own regulatory department. For eg. Dubai’s real estate market is regulated by the Dubai Land Department (DLD), which sets guidelines and regulations to ensure a stable and transparent market. These regulations may impact maximum loan amounts, especially for certain property types or locations.

The applicant’s age, income, employment, and the property type also play an important role in loan disbursement. It’s important to note that these guidelines are general, and may vary depending on the lender and the specific circumstances of the applicant.

You should now have a comprehensive understanding of the mortgage process in Dubai and UAE for a salaried person. With the relevant documents, you’re on your way to securing a mortgage for your dream property in the amazing country of the Emirates. Keep in mind though, the mortgage landscape is constantly evolving, laws change, interest rates change, so it’s always wise to seek professional advice from mortgage experts like ours at Sire Finance. They have their finger on the pulse of the industry, and are passionate about helping people. They will provide personalized guidance tailored to your specific circumstances. Careful planning and the correct knowledge is all you need to become a home owner in Dubai, Abu Dhabi, or anywhere in the UAE.