Mortgages and Financing

Question 1

Can foreigners get a mortgage in Dubai?

Accepted Answer

Yes. Both residents and non-residents can obtain property finance in Dubai under Central Bank of the UAE (CBUAE) regulations. Most banks allow up to 80% loan-to-value (LTV) for residents and 60% for non-residents, depending on income, nationality, and credit score.

Question 2

What are the eligibility requirements for a UAE mortgage?

Accepted Answer

Under CBUAE’s Mortgage Cap Regulation (Notice No. 43/2013), borrowers must demonstrate: A minimum monthly income (usually AED 15,000+ for residents). Documented employment or business ownership. A healthy AECB credit score (650+). Maximum repayment age of 65 years (employees) or 70 years (self-employed).

Question 3

How much down payment do I need to buy a property in Dubai?

Accepted Answer

Per CBUAE guidelines: UAE residents: Minimum 20% down payment for properties under AED 5 million. Non-residents: Minimum 25–35%, depending on lender and income source. Buyers must also pay 4% DLD registration, Oqood fees for off-plan purchases, and minor mortgage registration charges (DLD).

Question 4

What is the maximum mortgage term allowed?

Accepted Answer

The Central Bank of the UAE limits home loans to 25 years, with the final repayment due before the borrower reaches 65 (70 if self-employed).

Question 5

What types of mortgage rates are available in Dubai?

Accepted Answer

Banks regulated by CBUAE offer: Fixed-rate mortgages - interest locked for 1–5 years. Variable-rate mortgages – linked to the EIBOR (Emirates Interbank Offered Rate). Hybrid products combining both structures.

Question 6

What is the difference between Islamic and conventional mortgages?

Accepted Answer

Under Shariah-compliant financing, banks use structures such as Ijara (lease) or Murabaha (cost-plus sale), earning a profit rate instead of charging interest (riba). Both are fully supervised by CBUAE's Islamic Finance Standards

Question 7

Can I get a mortgage for an off-plan property?

Accepted Answer

Yes, but most banks release financing after at least 50% of construction is complete and the project is registered with RERA and DLD. Buyers often use developer payment plans first, then convert them to a mortgage once the title deed is issued.

Question 8

What documents are required for a mortgage application?

Accepted Answer

According to CBUAE and DLD guidelines, you’ll need: Passport, visa, and Emirates ID Salary certificate or trade license 3–6 months bank statements Sales & Purchase Agreement (SPA) Proof of down payment and AECB credit report

Question 9

How long does mortgage approval take in Dubai?

Accepted Answer

Bank pre-approval typically takes 3–5 working days, while final approval and DLD mortgage registration take 2–3 weeks, depending on valuation and documentation.

Question 10

What fees apply to mortgages in Duba

Accepted Answer

As per DLD regulations : Mortgage registration: 0.25% of loan value + AED 290 (DLD). Property valuation: AED 2,500 – 3,500. Bank processing fee: up to 1% of loan amount. Early settlement fee: max 1%, capped by CBUAE.

Question 11

Can I refinance my existing mortgage?

Accepted Answer

Yes. CBUAE allows refinancing between banks, subject to updated credit checks and property valuation. Ensure early-settlement or transfer fees don't outweigh potential savings.

Question 12

What is a mortgage pre-approval and why is it important?

Accepted Answer

A CBUAE-regulated bank’s pre-approval confirms the amount you’re eligible to borrow, valid for 60–90 days. It helps narrow your search and strengthens your offer when purchasing off-plan or ready properties.

Question 13

Can I use a mortgage to buy a second property?

Accepted Answer

Yes. Under CBUAE’s LTV framework, financing for second homes or investment properties is usually capped at 60–65% LTV, compared to 80% for primary residences.

Question 14

What happens if I miss a mortgage payment?

Accepted Answer

Missed payments are reported to the Al Etihad Credit Bureau (AECB) and can result in late fees or legal action under CBUAE's Consumer Protection Standards . Communicate with your bank early to restructure or defer payments if needed.

Question 15

How does Siraa assist with mortgage advisory and pre-approvals?

Accepted Answer

Siraa collaborates with licensed UAE mortgage partners (such as SPF Private Clients ) and CBUAE-regulated banks to help clients compare offers, obtain pre-approvals, and understand financing rules before committing to a property purchase.

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