How Do You Qualify for a Mortgage in Dubai?
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If you’re living in Dubai or planning to move here, owning a home can be a smart move. With attractive real estate options, zero property tax, and high rental yields, it’s no surprise many residents and expats are eyeing property ownership.
But let’s be honest — the mortgage process can feel confusing. What income do you need? Who’s eligible? And how do you actually get started?
This blog breaks it all down into plain English so you can confidently take your first step toward buying your dream property in Dubai.
Are You Eligible for a Mortgage in Dubai?
In Dubai, banks and lenders offer mortgage loans to a variety of people:
UAE nationals
Expats living and working in the UAE
Self-employed individuals
Freelancers (with solid income proof)
Non-resident foreign nationals (for select properties)
You don’t necessarily need to be a UAE citizen. But the conditions vary slightly based on your residency status.
Minimum Income Conditions
Your income is a major factor when qualifying for a mortgage. Here’s a general guide:
Salaried Expats: AED 15,000–18,000/month (minimum)
UAE Nationals: AED 10,000–15,000/month
Self-Employed / Business Owners: AED 25,000/month (with audited financials)
Freelancers: At least AED 20,000–25,000/month with proof of consistent income
These are not hard rules — different banks have different thresholds — but this gives you a ballpark.
What If You’re Self-Employed?
If you run your own business or freelance, you can still qualify for a mortgage.
However, you’ll need to provide more paperwork:
2 years of audited financial statements
Trade license (if applicable)
Personal and business bank statements
Proof of tax filings or income history
Banks want to see that your income is stable and legitimate, especially if it fluctuates.
Debt-to-Income Ratio (DBR)
The UAE Central Bank has a rule: your total debt should not exceed 50% of your monthly income.
That includes:
Credit card payments
Car loans
Personal loans
The new mortgage payment
For example, if your salary is AED 20,000/month, your total monthly debt payments (including mortgage) can’t exceed AED 10,000. If you have zero debt, you’re in a great position.
Down Payment & Loan-to-Value (LTV) Ratio
In Dubai, banks will never give you 100% of the property value. You’ll need to make a down payment:
UAE Nationals: Up to 80–90% mortgage (10–20% down)
Expats: Typically up to 75–80% mortgage (20–25% down)
Second property or investment property: Often 60–70% mortgage (higher down)
Example:
Property Price: AED 1 million
Typical Expat Mortgage: 75% (AED 750,000)
Your Down Payment: 25% (AED 250,000)
You’ll also need cash for upfront costs, which we’ll get into later.
Age Requirements
Your age affects the mortgage term. Most lenders have the following age limits:
Minimum age to apply: 21 years
Maximum age at end of mortgage term:
65 years for salaried employees
70 years for self-employed individuals
So if you’re 50 years old and employed, you may get a maximum tenure of 15 years
Residency Requirements
UAE Residents (with visa): Qualify for full mortgage products and better terms.
Non-Residents: Can get mortgages, but usually with stricter requirements and lower LTV ratios. Some banks only lend for ready properties, not off-plan.
Your Credit Score Matters
Dubai banks will check your credit score through Al Etihad Credit Bureau (AECB). A good score increases your chances and gets you better interest rates.
Tips to improve your credit score:
Pay all your bills on time
Avoid credit card debt or maxing out your limit
Keep your debt-to-income ratio low
If you’re new to the UAE and don’t have a credit score yet, some banks may ask for overseas credit reports or detailed bank statements.
Documents You’ll Need
Here’s a checklist for salaried employees:
Passport + residence visa copy
Emirates ID
Salary certificate
Payslips (last 3–6 months)
Bank statements (last 3–6 months)
Proof of current address (tenancy contract or utility bill)
Employment contract (in some cases)
If you’re self-employed:
Trade license
Passport and visa
Emirates ID
2 years of audited financials
Personal and business bank statements
VAT returns (if registered)
Banks may also request property-related documents once you choose a home.
Steps to Get a Mortgage in Dubai
Let’s walk through the actual mortgage process:
Step 1 – Get Pre-Approved
This is your first move. Submit your documents to a bank or mortgage broker. They’ll assess your income, debt, and eligibility.
Pre-approval gives you a maximum loan limit — and it shows sellers that you’re serious.
Step 2 – Find a Property
Once pre-approved, start house hunting. Whether you’re buying ready property or off-plan, make sure the developer or property is approved by your lender.
Step 3 – Property Valuation
The bank will send a licensed valuer to assess the property’s actual market value. This helps the bank decide how much to lend.
Valuation fee: Usually around AED 2,500 (non-refundable)
Step 4 – Final Approval & Offer Letter
After valuation, the bank issues a mortgage offer letter with the loan amount, interest rate, and repayment terms.
You’ll need to sign this to move forward.
Step 5 – Transfer & Mortgage Registration
The final step includes:
Paying the down payment
Paying Dubai Land Department (DLD) fees
Signing the mortgage agreement
Registering the mortgage with the DLD
Once everything is done, the mortgage amount is disbursed to the seller and the property is officially yours.
Types of Mortgages in Dubai
There’s no one-size-fits-all. Here are the common types:
Fixed-Rate Mortgage
Interest is fixed for a set period (1–5 years)
Predictable monthly payments
Good for long-term planning
Variable-Rate Mortgage
Tied to EIBOR (Emirates Interbank Offered Rate)
Can increase or decrease based on market
May start lower but has more risk
Islamic Mortgage
Sharia-compliant
Structured as rent-to-own or co-ownership (Ijara or Murabaha)
Off-Plan Mortgage
For properties under construction
Higher down payment (often 50%)
Fewer banks offer these
Upfront Costs You Should Expect
Besides your down payment, you’ll need to budget for:
| Fee Type | Estimated Amount |
|---|---|
| Property Valuation | AED 2,500–3,000 |
| Bank Processing Fee | Around 1% of loan amount |
| DLD Registration Fee | 4% of property value |
| Mortgage Registration | AED 2,000–4,000 |
| Real Estate Agent Commission | 2% of property value |
| Life Insurance | Required by most banks |
| Property Insurance | Usually required |
These can add up to 6–8% of the property price. Plan accordingly.
Tips to Improve Your Mortgage Approval Chances
Maintain a low debt-to-income ratio
Keep a strong credit history
Increase your down payment (lower LTV = better rates)
Choose a longer loan term if you want lower EMIs
Work with a good mortgage broker to compare banks
Frequently Asked Questions
Can I get a mortgage as a non-resident?
Yes, but options are fewer, and down payments are usually higher.
Can I use rental income as part of my income proof?
Yes, if you can show consistent rental payments and tenancy contracts.
Do I need to buy insurance?
Yes, life and property insurance are mandatory for most mortgage lenders.
How long does the mortgage process take?
If your documents are ready, the full process (pre-approval to registration) can take 2–4 weeks.
Can I pay off my mortgage early?
Yes, but some banks charge early settlement fees — usually 1% of the outstanding balance.
Final Thoughts
Qualifying for a mortgage in Dubai isn’t as complicated as it seems — once you understand the steps. It mainly comes down to having a stable income, a good credit profile, and some cash ready for down payment and fees.
Whether you’re planning to buy your forever home or invest in a rental property, getting pre-approved is the best way to start. And if you’re feeling overwhelmed, working with a mortgage advisor can make the process smoother.
Your property journey in Dubai starts with a few documents, a solid budget, and the right guidance.
