For expatriates and locals alike, banks and financial institutions in Dubai offer a wide range of mortgage options. Whether as an investor or a family planning a vacation in Dubai, loans have become an important application route for purchasing property.

1. Choosing the right bank or financial institution

Many international and local banks offer mortgage services in Dubai. Common banks include National Bank of Abu Dhabi (NBAD) and Commercial Bank of Dubai (CBD) in the UAE, as well as international banks such as HSBC. You need to choose the right bank based on the loan rate, terms and conditions and banking services.

2. Determine loan eligibility

Income requirements: Banks usually require borrowers to have a steady source of income and will assess their repayment ability based on their income. Different banks may have different income level requirements.

Credit score: Banks will check your credit score. If you are a non-resident, you may be required to provide a credit report from your home country.

Employment and residence status: Banks usually ask for documents such as your employment contract and proof of residential address.

3. Choose the type of loan

Fixed Rate Loan: The interest rate remains the same for the life of the loan and is suitable for lower risk borrowers.

Floating Rate Loan: The interest rate fluctuates according to the market interest rate and is suitable for those borrowers who can afford interest rate fluctuations.

4. Required documents for loan application

Proof of personal identity: e.g. passport, residence permit (in case of foreign residents).

Proof of income: including pay slips, tax statements or bank deposit certificates, etc.

Purchase contract: including the purchase price of the house and relevant legal documents.

Bank account information: for the bank to review your financial situation.

Credit Report: A report from a local or international credit bureau.

5. Application Process

After submitting all the necessary documents, the bank will conduct a review, including an evaluation of your income, debts, credit history, etc. The bank will then ask you to provide a copy of the property appraisal report.

The bank may ask for a property appraisal report to confirm the market value of the property.

If the loan application is approved, the bank will provide you with details of the loan amount, interest rate, repayment period, etc.

6. Loan Approval and Signing

Once the bank approves the loan, the borrower needs to sign a formal loan agreement with the bank to ensure that both parties agree on the terms.

The bank will usually require the borrower to make a down payment of a certain percentage (usually 20% to 30% of the purchase price of the property).

7. Repayment

Once the loan is approved, you will make regular repayments according to the loan agreement. The loan term is usually 15 to 25 years, and the exact repayment schedule depends on the bank's rules.

8.Notes

Expat loan restrictions: Although expats are allowed to apply for a mortgage to purchase property in Dubai, some banks will have stricter loan conditions for expats and may require a higher percentage of down payment.

Floating interest rates: Banks' floating interest rates are usually linked to market rates and therefore may fluctuate according to market changes.

Loan Approval Time: Usually the loan approval time ranges from a few weeks to a month, so you need to set aside time in advance in your home buying plan.