The UAE's Trusted Mortgage Experts
You are in good hands with a big team of highly experienced mortgage brokers who are happy to help you with everything you need to know when you are looking to purchase your first home or investment property. Knowing the local banking system from the inside allows us to present each customer application to UAE banks in the most favorable light and with a complete package of supporting documents.
The Popularity of Mortgages in the UAE
According to the latest data revealed by Mortgage Finder, the mortgage market in Dubai has grown by 68% in the first 3 quarters of 2021 and 71% more than in 2019. One of the driving forces behind this boost in demand is low mortgage rates, which, in fact were reduced to 3.7% compared to 5.2% in 2019.
Additionally, LTV was reduced by the Central Bank for first-time buyers by 5% just last year. In order to attract more investors, the DLD announced in September 2021 that the minimum amount required to apply for a 2-years residence visa through investment was reduced to AED 750K (USD 204,100) from AED 1KK ( USD 272K).
To help you find the most suitable mortgage offer regarding your budget and preferences, we have created a guide covering all aspects of mortgages in the UAE.
Using the services of our mortgage brokers team you can buy off-plan or ready property in any emirate or get construction or land finance at the lowest rates.
How to Obtain A Mortgage in the UAE
In order to meet the eligibility criteria for obtaining a mortgage in the UAE, you must be a UAE national/resident and be above the minimum age restriction as set by the lenders. Regarding the required monthly income amount, it is recommended to contact Metropolitan Consulting for mortgage services beforehand to ensure alignment with the latest bank policies and to verify your eligibility credentials. This proactive step helps streamline the process and avoid potential delays.
For non-residents, the mortgage options are quite limited, since most banks prefer to deal with applicants who have UAE residency. Benefits of using our services:
- Expert Guidance & Knowledge of the UAE Mortgage Market
- Access to Multiple Lenders
- Personalized Service
- Expert Negotiators
- Hassle-Free Experience
- Ongoing Support & Lifelong Partnership
- Affordable Expertise
- Processing Fee Discount, Exclusive Rates, and Discounted Evaluation
FAQ
Can I Obtain A Mortgage in UAE for An Off-Plan Development?
Yes, there are 2 options in this case:
1) If you take a loan while the development is still under construction, then your bank will cover 50% of the property value.
2) The LTV is even higher after the handover since it provides an opportunity of an 80% ratio.
Note: Instead of applying for a mortgage, consider using the option of a payment plan. Developers provide some very attractive offers, and you can also resell the property after you pay only 30-40% of its value.
What Are The Most Important Aspects to Consider When Applying for A Mortgage?
It is recommended to take into account the initial interest rates, and any upfront expenses, and investigate whether there are options for partial prepayment available.
What Mortgage Types Can UAE Residents Benefit From?
UAE residents can access many mortgage types including refinancing, paying off a mortgage early, buying out a mortgage and commercial financing.
How Long Does It Take to Obtain A Mortgage in the UAE?
The time to obtain a mortgage in the UAE varies based on several factors, including the client’s profile, bank processes, and documentation readiness.
1. For Residents:
• Pre-approval: 3 to 5 working days. Banks review credit checks, personal details, and eligibility assessments to issue a preliminary pre-approval.
• Property Valuation: 3 to 7 working days. Valuation companies inspect the property and report its value to the bank.
• Final Mortgage Approval: 7 to 15 working days. After receiving the valuation report and ensuring compliance with down payment requirements, the bank issues final approval.
• Transfer and Mortgage Registration: 3 to 5 working days. The buyer completes the property transfer, and the mortgage is registered with the relevant emirate’s Land Department.
Total Duration: 3 to 6 weeks
2. For Non-Residents:
• Pre-approval: 5 to 10 working days Additional scrutiny of documentation and international creditworthiness may cause delays.
• Property Valuation: 3 to 7 working days
• Final Mortgage Approval: 10 to 20 working days Non-resident applications often involve more due diligence and require proof of income, down payment sources, and legal documentation.
• Transfer and Registration: 3 to 5 working days
Total Duration: 4 to 8 weeks
Key Factors Influencing Timelines:
1. Documentation: Delays occur if documents are missing or incorrect
2. Bank Policies: Some banks may have stricter compliance checks
3. Type of Property: Off-plan properties or secondary market purchases can impact timing
4. Valuation Delays: External valuation companies might take longer in some cases
5. Public holidays or scheduling issues at the respective Land Departments
Pre-approvals help streamline the process, and working with a mortgage consultant like Metropolitan Consulting ensures compliance with bank policies and smoother processing.
What Is The Amount of The Down Payment?
For UAE residents, the down payment amounts to 20% of the property value without further expenses depending on the bank. However, non-residents must pay up to 40% plus about 6-7% of the full property value for the ownership transfer and other accompanying fees.
What Is The Recommended Ratio Between The Sum of The Mortgage and The Salary?
As mentioned earlier, the amount of loan payments cannot exceed 50% of the borrower’s income. You should also take into account any other existing loans you have, including your monthly rental payments and other commitments.
What Are The Age Limits for Getting A Mortgage in the UAE?
The minimum age limit is set at 21, while the maximum term is up to age 65 for employed expats. UAE nationals and self-employed expats can benefit from the mortgage until they are 70. However, the older the individual is, the shorter the terms for loans are, meaning the payments are larger.
Which Documents Are Required to Apply for A Mortgage in the UAE?
The requirements vary from one lender to another, but in general, you will need the following documents:
1. Emirates ID, passport, and visa copy
2. Proof of income for salaried individuals
3. Photocopy of trade/commercial license for self-employed individuals
4. Copy of allotment letter
5. 3-6 months bank statements
6. Buyer agreement
7. Proof of funds
8. Pre-approval from the bank
9. Life insurance
10. Property insurance
How Can I Get My Credit Report?
You can check your credit report on the AECB website – https://etihadbureau.ae/ or download it via the AECB application. The price for a credit report with a score stands at AED 84 (USD 23) (individual) and AED 157.50 (USD 23) (business).
Why Hire A Real Estate Agent?
Buying a home in the United Arab Emirates can be challenging, particularly for first-time purchasers. The entire process, from home inspections to open houses, may be extremely stressful. To assist you in navigating the loan process and locating a mortgage that best suits your needs and financial situation, Metropolitan Consulting can be of assistance.
Language Skills
Given that more than 80% of the population is foreign, English is the most widely spoken language in the United Arab Emirates. Therefore, it is possible to negotiate in English; however, you will face some challenges during the procedure if your English is not sufficient. It might be difficult for even experienced translators who are not familiar with the mortgage application process to effectively convey real estate lingo and transaction procedures to their customers.
The real estate process involves a lot of communication, and in order to avoid any errors, it is crucial that you comprehend everything. Additionally, using a knowledgeable mortgage broker will help you discuss and translate documents much more efficiently than using online translation services. A multilingual broker will also help you explore your offers and offer advice on how to use them to get the best possible deal. These offers typically consist of 20–25 pages in English, which can be a lot of information to take in at once. All technical terminology that are easily missed or misinterpreted if you do this alone will be explained by a broker.
Knowledge of The Real Estate Market
In example, the process of comparing loans might take up a lot of your time. A list of possible lenders must be compiled, each must have their background checked, and the selected lenders must be contacted and interviewed in person. This takes a lot of time, and since numerous lenders are pulling your credit, it could lower your credit score. The main advantage of engaging with a mortgage broker for many borrowers is that they may help you locate a better mortgage deal than you could on your own.
This is because the general public cannot directly access the wider variety of contacts that a specialist possesses. Furthermore, the broker can frequently factor their fees into the interest rate on the loan or into the closing costs, so you can take advantage of their services without having to pay a sizable upfront fee. The mortgage broker will also help you navigate the escrow process, updating you on the progress of your new mortgage as it moves through the application and closing.
Dealing with Paperwork
There will typically be a ton of paperwork to finish while applying for a mortgage, including applications to fill out and personal information to organize. When NR Luxury Properties Consulting is on your side, you will have someone who is fully aware of the forms that need to be completed and the documents that you will need. In order to assist you in applying for loans and negotiating terms quickly, NR Luxury Properties Consulting collects the necessary paperwork from you, checks your credit history, and confirms your income and employment.
Selection of Property Options
You must be well-informed about the local real estate market whether you are purchasing a home for residential use or as an investment. With access to real estate listings and sales information, NR Luxury Properties Consulting is able to provide the borrower with reasonable price recommendations. NR Luxury Properties Consulting is in charge of helping you navigate the entire process and locating the ideal home that meets all of your needs and preferences.
