HOW TO GET A MORTGAGE IN DUBAI

Securing a mortgage in Dubai is accessible to both residents and non-residents, although the terms are notably more favorable for Emirates ID holders.

✔️ For residents, the loan amount can reach up to 80% of the housing cost, whereas non-residents might find banks financing a maximum of 50%.

❗️ Non-residents may face mortgage denial if they belong to a country not approved by the bank's list.

➤ DOWN PAYMENT

✔️ Typically, it begins at 20% for residents and at a higher 50% threshold for non-residents.

➤ INTEREST RATES

✔️ Fixed: Averaging at 5.2-5.3% annually for 1 to 5 years, subject to revisions based on market conditions.
✔️ Floating: Dependent on EIBOR (interbank lending rate) + bank margin.

➤ INCOME REQUIREMENT

✔️ Monthly income should ideally range between $3,300 and $4,100. The monthly payment must not exceed 50% of the borrower's income.

➤ MAXIMUM LOAN TERM

✔️ Extended to 25 years or until the applicant hits 65 (for employees) or 70 years (for entrepreneurs).

➤ MORTGAGE APPLICATION DOCUMENTS

✔️ Application form (varies among banks)
✔️ For employees: Employer details + 6-month income certificate
✔️ For entrepreneurs: Annual audit reports + 6-month bank statement

➤  MORTGAGE-RELATED COSTS

✔️ Bank application consideration fee: 0.5-1% of property value (refundable if declined)
✔️ Property valuation: Approximately $1,000
✔️ Property insurance: Ranging from 0.5% to 1% of property value
✔️ Borrower's life insurance: 0.3% of the loan amount
✔️ DLD mortgage registration: 0.25% of the loan amount

➤ PYMENT PLANS AND MORTGAGES

✔️ Securing a mortgage for off-plan properties in Dubai can be challenging. Instead, utilizing a developer's payment plan during construction and later opting for a mortgage for the remaining amount upon property completion is a viable strategy.

➤ For instance, MAG developer offers the Keturah Reserve project with a 40/60 payment plan:

✔️ 10% - Down Payment
✔️ 30% - During Construction
✔️ 60% - Upon Completion
✔️ Buyers can consider a mortgage for the 60% portion, allowing them to make regular smaller payments thereafter.

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