We got clients frequently ask that if they’re eligible to apply a mortgage when buying a property in Dubai since they are not residents. This is a guideline for investors who are looking for finance solution to purchase Dubai Property:
The answer is YES
And these are the things you need to know before submitting your application:
Applicants’ age shall be between 21-65
Usually Dubai banks are financing only the ready properties with Title Deed(Ownership certificate of the property) But some off-plan projects from premium developers such as Emmar, Dubai Properties and Meraas etc. can also get financed when the construction reaches to certain percentage for example 70%
Expats who have Dubai residence visa can apply up to 80% mortgage and none residence can apply up to 50%.
You have options of 5, 10, 15, 20, and 25 years for mortgage period, your maximum period is 65 years minus your age. For example, you’re 30 years old and your maximum years shall be: 65-30=25, so you’re eligible to apply for max 25 years. Or if you’re 48 years old, it would be 65-45= 17, so you’re only eligible to apply for max 15 years.
Required documents:
Make sure you have these documents in hand and get them translated into English by Dubai local legal translation companies.
If you’re employee:
1. Passport copy with at least 6 months validity from the date of submitting application.
2. 3- or 6-months bank statement depends on which bank you’re applying. And your balance during this period shall not be less than 25000AED every day.
3. A Salary Certificate issued by HR department of your company with stamp is required. Your basic salary (including allowance) shall not be less than 10000AED(some banks asking 15000AED)
4. Current residence proves such as utilities bill, national ID, driving license, lease contract or title deed shall be provided. (Only accept documents issued by government)
If you’re employer:
1. Passport copy with at least 6 months validity from the date of submitting application.
2. 3- or 6-months of your personal and corporate account bank statement depends on which bank you’re applying. your balance during this period shall not be less than 25000AED every day.
3. Trade license, MOA (Memorandum of Association), 2 years audit report of your company shall be provided.
4. Current residence proves such as utilities bill, national ID, driving license, lease contract or title deed shall be provided. (Only accept documents issued by government)
Interest Rate:
Bank fixed rate +3-months EIBOR (Emirates Interbank Offered Rate which changed every 3 months). For example, Mashreq Bank fixed rate is 2.99%, and current 3-months EIBOR is 1.6%, your total interest rate during these 3 months would be 4.59%. Please note that different banks offer different fixed rate. You can choose a total fixed rate for the first or even second years, so your interest would be stable during this period.
Mortgage Procedure for new properties:
Step 1:
Submit soft copies of all documents mentioned above to the bank by email to get pre-approval before one month of the project completion. It shall take 14 working days for approval.
Step 2:
Your bank will appoint third-party evaluation company for your property, and the final offer shall be calculated based on the evaluation price not contract price. For example, you purchase a 100 million property and the evaluation price is 900,000AED, so you will get 50% of 900,000AED from the bank. Sometimes evaluation price is higher than contract price.
Documents required for property evaluation:
1. Oqood (Initial Sale and Purchase Agreement of off-plan property)
2. Copy of the owner's passport
3. Copy of the Title Deed and floor plan of the property
4. Pay the bank's property evaluation fee estimate 2,500 – 3,000 AED
Step 3:
After pre-approval and evaluation, your bank will give you a Final Offer Letter to tell you how much exactly you can borrow from them. You must visit the bank alone with all your original documents to meet your account manager to sign the mortgage contract.
Step 4
Your bank will issue a manager’s cheque (a cheque which issued by your bank account manager, money is deducted in advance upon your request so the beneficial will get this money 100% once they received your cheque) with approved mortgage amount against the developer, you may book an appointment with the developer to Trustee office (representative offices of Dubai Land Department to handle properties transaction in different areas) for the transaction.
Mortgage Procedure for secondary properties:
Step 1:
Submit soft copies of all documents mentioned above to the bank by email to get pre-approval before one month of the project completion. It shall take 14 working days for approval.
Step 2:
Sign MOU (Memorandum of Understanding, usually acts as a reservation agreement) with seller.
Step 3:
Your bank will appoint third-party evaluation company for your property, and the final offer shall be calculated based on the evaluation price not contract price. For example, you purchase a 100 million property and the evaluation price is 900,000AED, so you will get 50% of 900,000AED from the bank. Sometimes evaluation price is higher than contract price.
Documents required for property evaluation:
1. Signed MOU
2. Copy of the owner's passport
3. Copy of the Title Deed and floor plan of the property
4. Pay the bank's property evaluation fee estimate 2,500 – 3,000 AED (cash cheque)
Step 4:
After pre-approval and evaluation, your bank will give you a Final Offer Letter to tell you, how much exactly you can borrow from them. You must visit the bank alone with all your original documents to meet your account manager to sign the mortgage contract.
Step 5:
a) When your seller has no mortgage:
Your bank will issue a manager’s cheque with approved mortgage amount against the seller, you may book an appointment with seller to the trustee office for transaction
b) When your seller has a mortgage:
Your bank will issue a manager’s cheque with approved mortgage amount against the seller, you may book an appointment with the trustee office (representative offices of Dubai Land Department to handle properties transaction in different areas) for Blocking Unit
Submit all documents and cheques to Trustee office and they will block the property. Seller has to come for transaction with 30 working days after blocking. In case seller does not show up, Dubai Land Department will transfer the property to buyer automatically. (Buyer’s right is 100% protected by law)
For more detail about Dubai property mortgage, kindly contact your experienced property consultant Ms. Anna by calling/whatsApp/Wechat:+971525586505
