Not sure where to begin? We reached out to the experts…
Dubai’s booming property market is attracting more residents and global investors to purchase property in the city. If you’re thinking about becoming a homeowner here, you might be exploring mortgage options to finance your purchase. To guide you on where to begin, we consulted the experts for key insights on getting a mortgage in Dubai.
Where to start
“Key factors to keep in mind are: how much you have for a deposit, your total salary, benefits, and other sources of income, and finally, what liabilities you have that need to be deducted,” says Stuart Roe, Partner at Allsopp & Allsopp. “It’s important to note that rental income from properties in the UAE can be included, but only 40% of the income will count towards your total, while 100% of the liability is considered,” he adds. “Another consideration is the buyer’s age—most banks allow mortgage buyers up to 65 years old, though some now extend this limit to 70, which can help reduce monthly installments and allow buyers to borrow more.”
“You need to do the math to understand where you stand,” explains Joshua Pargin, Sales Manager at Nomad Homes. “Can you afford the repayments? Do you have the down payment and fees to close the deal? What current liabilities do you have, and can you reduce them?” he highlights as three key factors to consider. “As a general rule, your living expenses, mortgage, and bills should make up about 33% of your monthly income.”
Who to work with
“Everyone can download a copy of their credit file, and then it’s best to reach out to a mortgage broker to explore the options,” explains Stuart Roe, Partner at Allsopp & Allsopp Group. “A skilled broker will have access to all available products on the market and will be able to assess exactly what buyers can afford.”
“Mortgage brokers have the expertise and access to the entire mortgage market and can steer you towards the best options based on your specific situation,” agrees Mollie Credland, Mortgage Advisor at Espace Mortgage Services, part of Espace Real Estate. “Working with a broker can save you time and money compared to approaching each bank individually. They’ll guide you through the process, handle the admin, and communicate with the bankers on your behalf, ensuring a smooth home-buying experience.”
How to steer clear of mistakes
“One common mistake people make is going straight to their bank instead of shopping around the market,” says Joshua Pargin of Nomad Homes. “It’s always better to work with a broker who can guide you to the best products available.”
“A mistake we see over and over is people missing out on their dream home because they haven’t secured their mortgage pre-approval,” adds Mollie Credland of Espace. “In Dubai’s fast-paced property market, many buyers get disappointed after finding the perfect home, only to lose out to someone who’s already pre-approved for a mortgage and ready to commit. A mortgage pre-approval lasts 30 to 60 days (depending on the bank), is free of cost, carries no obligation, and can even be extended. I always recommend getting your pre-approval as soon as you start your property search to avoid disappointment and unnecessary stress later on.”
How to select the right mortgage provider
When choosing the best mortgage provider for your new home, it’s important to consider factors like interest rates, loan terms, fees, and customer reviews of the bank. “There are 18 banks in the UAE currently offering mortgage lending,” explains Mollie Credland, Espace Mortgage Advisor. “Many banks offer preferential interest rates if you transfer your salary to them, so this is something to keep in mind if it fits your situation.”
How much can you qualify to borrow?
“Typical borrowing limits and mortgage affordability are calculated the same way across all banks in the UAE,” says Mollie Credland of Espace. “Your monthly liabilities—such as car loans, personal loans, new mortgage installments, and a percentage of your credit card limits—must not exceed 50% of your total monthly income. This is referred to as your Debt to Borrowing Ratio across the region.”
“As a general rule of thumb, you could borrow up to seven times your annual salary,” adds Darren Bell, Senior Mortgage Manager at Holo. “However, banks are only allowed to use 50% of your monthly income for debt repayments, including mortgages, loans, and credit cards. While you can’t take a loan to cover your deposit, there are mortgage products available that allow you to add fee assistance to cover most of the home-buying costs.”
How long does the mortgage process take?
“On average, it takes 7 to 10 working days to obtain pre-approval,” explains Darren Bell of Holo. “The entire process, from start to transfer or completion, can take between 6 to 8 weeks.”