Home Loans For UAE Residents
Our excellent mortgage consultants in Dubai will help you to secure the best mortgage deals in the UAE whether you’re a first time buyer, re-mortgaging your home or constructing your own villa. We will help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest mortgage advices.
We work for you, Not for the banks!
Capital Zone Mortgage Brokers was established to assist purchasers in their mortgage quest. When you’re looking to buy your property, our mortgage brokers can provide sage advice because they are knowledgeable in the subject.
The mortgage team can provide you advice on which bank would be the most suitable for your needs because they have developed partnerships with several banks over the years.
Mortgages In the United Arab Emirates
Expats are choosing the United Arab Emirates more and more frequently, particularly in business-friendly regions like Dubai and Abu Dhabi. International and local lenders increasingly provide house loans to expats in the UAE’s well-established mortgage market, which recognizes this trend. Foreign nationals residing in the UAE have access to both residential and buy-to-let mortgages, albeit the requirements for each vary.
Should you buy property in the UAE?
Millions of expats reside in the UAE, yet many still opt to rent, either because buying is expensive, they are unsure of how long they would be staying overseas, or buying a home would be expensive.
Apartments and homes can be bought by foreign buyers in some freehold development sites in the UAE. Many foreigners buy brand-new homes off-plan, straight from the developer. This sometimes entails placing an initial deposit of 10% and subsequent payments on predetermined dates while the property is being built.
Since timelines aren’t always accurate and delays might happen frequently, it is best to get legal counsel before taking this course of action.
Buying a house in the UAE can be expensive. In Abu Dhabi, a transfer fee of 2% of the purchase price must be paid to the municipality as well as the estate agency. You must additionally pay the developer a charge of AED 5,000 for brand-new residences.
Similar fees apply in Dubai, with 2% going to the estate agency and 2% to the Dubai Land Department (the seller also pays 2%).
Who can obtain a mortgage in the UAE?
In the United Arab Emirates, foreign purchasers can obtain a mortgage, but they must fulfill specific requirements. Depending on the region you are purchasing in and the requirements of your lender, you must have been employed at your current position for at least six months or a full year. Borrowers who are self-employed must have been in business for at least two years. The bank will be familiar with your situation if you already have a relationship with it, which can be advantageous.
The fact that some banks would only accept candidates who work for particular companies is one of the largest systemic oddities. This indicates that you are less likely to experience issues if you work for a government agency, a financial institution, or a multinational corporation. However, even if you have good credit, you can have trouble getting a loan from some lenders if your employer is smaller or less well-known.
Furthermore, having a good credit history is crucial since lenders frequently turn away candidates with bad or nonexistent credit histories. In light of this, you ought to wait to apply for a mortgage until you have examined your credit report and fixed any errors. If you have no credit history, you can think about getting a credit card and paying it off completely each month to establish one.
Types of mortgages in UAE
In the UAE, mortgages are offered with fixed or variable interest rates. Although they might be as short as one year, fixed durations are often five years or longer. The agreement switches to the bank’s variable rate at the conclusion of the fixed period.
Although variable rate mortgages are worth considering if interest rates appear to be falling, fixed-rate mortgages give you certainty about the size of your repayments for a predetermined period of time. The loan must typically be returned before the age of 70, and terms are typically 25 years long.
How much can you borrow for a UAE mortgage?
If an expat plans to purchase a home valued up to AED 5 million, they will need to put down a deposit of at least 25%. A deposit of at least 35% is required for more pricey properties. A buy-to-let mortgage, which calls for a substantially greater down payment of between 40 and 50 percent, is necessary if you want to invest in real estate and rent it out.
There are numerous ways to cap borrowing. Your total projected earnings over the following seven years cannot exceed the amount you will be borrowing (including interest). When compared to the limitations of 30 or 35 percent utilized in other European nations, Dubai’s mortgage payment cap of 50 percent of your monthly salary is generous. Banks may need you to have higher incomes than a local applicant when you apply for a mortgage since some lenders view expats as a riskier option.
How to apply for a mortgage in the UAE
To apply for a home loan in Dubai, UAE, you can either approach banks directly or take advice from a mortgage broker. In the likes of Dubai and Abu Dhabi, you will also encounter comparison websites where you can weigh up deals from a range of lenders. A mortgage broker can be a great asset for expat borrowers. They will be able to help you navigate the quirks of the local market and find you the right deal for your circumstances. Mortgage applications in the UAE are usually processed in the space of a few weeks.
UAE mortgages: step-by-step Guide
The main steps for getting a mortgage in Dubai-UAE are as follows:
- Decide whether to approach the bank directly or use a broker;
- Do your research to find the right type of mortgage for your circumstances;
- Obtain an agreement in principle from the bank and ask for a letter providing evidence of this;
- Find a suitable property within your budget and make an offer;
- Once you have agreed on a price, pay your deposit to confirm your purchase and agree on a completion date;
- On the completion date, the mortgage lender will release the funds to the seller
Mortgage repayments in the UAE
The most common kind of mortgage in the UAE is a repayment mortgage. For the duration of the mortgage term, a fixed monthly payment is made under these agreements. Typically, you will pay on the same day each month by setting up a direct debit from your bank account.
Less people have mortgages with just interest. These entail paying only the interest-bearing portion each month and having to repay the entire principal balance at the term’s end. These loans are risky, hence they frequently have periods of only five years.
Refinancing a mortgage in the UAE
Banks compete fiercely in the UAE mortgage market by trying to give lowered fixed terms on their mortgages. This is good news for homeowners wishing to switch deals because those who already have mortgages tend to get the best deals.
If you want to switch deals, start by talking to your existing bank. Some lenders might think about rearranging your loan at a lower interest rate for a set period of time. While some banks do not charge a fee for remortgaging, the majority do. The good news is that 3 percent buy-out fees are no longer in use. The maximum fee was set by regulations introduced in December 2015 at 1% of the balance (up to AED 10,000).
Mortgage Calculator
Calculate how much you can afford to borrow with our easy to use mortgage calculator
- We’ll evaluate all available products in the market and short list the most suitable options for you
- We’ll coordinate all necessary documents, secure your mortgage pre-approval, and complete your bank application forms.
- We’ll handle all bank interactions, and co-coordinate the property valuation and mandatory life insurance.
- Once the mortgage is secured, we’ll coordinate the property transfer. We even provide advice after settlement.
Why we are the best Mortgage Broker in Dubai?
Best mortgage broker in dubai
Required Documents To Apply for a mortgage in dubai
Personal Documentation
- Emirates ID, Passport & Visa
Salaried employee:
- Latest salary certificate
- Latest pay slips
- Any additional bank statements from the last 6 months
Self-employed:
- Valid Trade License copy
- MOA (Memorandum of Association) including all amendments
- Bank statements from the last 6 months
- Audited financials from the last 2 years
Identical documentation for co-borrowers (if applicable)
bEST Mortgage broker in dubai
How to get Approved?
Wondering how it all works? Here are few criteria we take into action.
- Down Payment - Your down payment is your first stake in your new home
- Credit Score - The better your score, the more likely you are to get a great interest rate
- Employment History - A steady work history tells us how you well you will be able to meet your mortgage
- Debt Burden Ratio - Ratio helps us determine how much mortgage you can afford
Down Payment
Employment History
Credit Score
Debt Burden Ratio
Our Banking Partners
We work with more than 15 different lenders to get you the best mortgage in the UAE!
Our Mortgage Services
We will be glad to provide you with the most optimal solution either for your mortgage or money loans matters.
New Purchase
Whether It's your first or second mortgage we are here to help you to get the best possible rates and conditions and guide you through the whole process of getting the new property.
Equity Release
Releasing equity from your property can be a good idea to renovate your property or fund another purchase. You can avail up to 70%-80% loan to value of your existing property.
Re-Mortgage
Refinancing your home is simply getting a better mortgage deal to replace the original mortgage. Refinancing is done to allow a borrower get a better rate to save on interest.
Non-Resident Mortgage
Non resident can get up to 75% loan to value for purchasing a property in the UAE.
Loans Against Rental Income
The rental income can be used along with other income, such as your salary to increase your borrowing power or else mortgage out of the rental income purely are also available.
Under Construction & Off Plan
Arrange up to 50% loan to value (LTV) for the off plan or under construction property. The LTV can be increased after the handover.
Commercial & Building Finance
We also assist our clients in planning and arranging finance for residential as well as commercial developments.
Construction & Land Financing
When you own a piece of land, you can build a space that is uniquely yours, We help to acquire the land for you so that you can start turning your dream into reality.
Call Us Today for FREE Consultations
Our team of brokers can help with all of your home loan and commercial finance needs!
Frequently Asked Questions
A conventional mortgage is where your loan repayments will include paying a rate of interest to the bank, this is their profit for lending you the funds.
An Islamic mortgage differs from a conventional mortgage because under Shariah Law it is forbidden to charge interest on a loan, so in this case banks will buy the property on your behalf and rent or lease it back to you for a profit.
This depends on your occupation. Salaried candidates will usually have to endure 1 week until approval, whereas self-employed candidates may have to endure a longer period.
Yes, they can, although the conditions and possible charges will be different for non-residents.
Your credit limit is determined by your present income and liabilities. Depending on the bank, this may change.
EIBOR is the Emirates Interbank Offered Rate, which is the rate at which banks lend to each other. EIBOR rates change daily and can be checked on the Central Bank website here
The minimum down payment for a property under AED 5million is 20% for an expat or 15% for a UAE national. The minimum down payment for a property over AED 5million is 30% for an expat or 25% for a UAE national.
