Requirements for a non resident applicant

Requirements for Non-Resident Applicants

Eligibility conditions for non-residents purchasing from outside the UAE are a little different compared to those for nationals and foreign residents (expats.)

 

Salaried Non-Residents	Self Employed Non-Residents
Salaried employees – at least 6 months in their current job	Running their business for at least 2 years
Good credit history is necessary	Good credit history is necessary
Minimum monthly income for most banks starts from USD 4,000	Over USD 816,000 in annual turnover
Maximum 50% of income dedicated to repayment	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)	Deposit starting from 20% (15% with national Islamic funding options)
Up to 25 years loan term	Up to 25 years loan term
Between 21 and 65 years old	Between 21 and 65 years old

 

Pre-approval documents required:

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

Salaried Non-Residents	Self Employed Non-Residents
Passport (all pages)	Passport (all pages)
Local ID (National ID card, proof of age card etc.)	Local ID (National ID card, proof of age card etc.)
Proof of residential address (eg. latest utility bill, not mobile bill.)	Proof of residential address (eg. latest utility bill, not mobile bill.)
Latest salary certificate (30 days old or less)	Document of company establishment if self employed
Last 3-6 months payslips	MOA (Memorandum of Association) including all amendments
Proof of previous employment if in current position for less than 3 years	Audited financials from the last 2 years
Liability / Reference letter no more than 45 days old	Company bank statements from the last 6 months for self-employed
Latest tax returns for the previous 2 years and a Credit Report	Personal bank statements from the last 6 months
–	Copy of Chamber of Commerce Registration for company
–	Copy of Labor Contract

 

 

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**
• Proof of deposit payment (Manager’s check/ Bank cheque)

* 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)

 

Documents Required to Apply for a Mortgage in Dubai as a Non-Resident

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 National 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. As a non-Resident, your Passport and local country ID will be required.
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. Employment / Salary Documents: To verify your employment and income, you will need to provide employment documents such as employment contracts, salary certificates, and bank statements showing salary transfers. If you’re self-employed, you’ll need to verify the valid registration of your company, having been established at least 2 years, and show at least 6 months of your personal bank account 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 as a Non-Resident

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. For non-Residents however, you’ll need to prove you’re earning at least US $4000 a month, or that your company is turning over at least USD $816,000 revenue per annum.
   (Remember, lenders assess your income stability to determine your ability to repay the mortgage. Generally, they require a minimum of 6 months’ stable employment with the same company, or two years’ company operation as a self-employed applicant, 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 National or Emirates ID, a salary certificate for proof of employment (or proof of company registration), proof o your access to funds, and proof of residence (copy of tenancy contract or utility/ 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 group of companies, 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 non-resident person wanting to purchase property in Dubai, Abu Dhabi or the UAE. With the relevant documents, you can secure a mortgage for your ideal property in the popular investment country of the Emirates. Keep in mind however, 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.

At the moment the UAE is very amenable to foreign investors, and are making is easy for non-residents to purchase and own property. Therefore now is the time to act. Our home loan specialists 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 property owner in Dubai, Abu Dhabi, or anywhere in the UAE.