Purchasing a property in Dubai is an exciting venture, whether you’re a resident or non-resident. Understanding the mortgage process can help you secure your dream home with ease. In this simple, step-by-step guide, we’ll walk you through how to get a mortgage in Dubai, whether you live here or abroad.

Step 1: Understand Mortgage Eligibility
Before applying for a mortgage, it's important to know your eligibility.

• Residents: If you're a resident of the UAE, you typically need to have a steady income, a good credit history, and a minimum salary (often around AED 15,000 per month).
• Non-Residents: Non-residents can also get a mortgage in Dubai, but the process may be slightly different. You'll usually need to provide more documentation, and the loan-to-value (LTV) ratio might be lower, meaning you’ll need a larger down payment.
   

Step 2: Research Mortgage Providers
Once you know you're eligible, it's time to find a mortgage provider. In Dubai, you can get a mortgage from:

• Banks: Several banks in the UAE offer mortgages, including Emirates NBD, Mashreq, and HSBC.
• Mortgage Brokers: Brokers can help you compare different mortgage options and find the best deal for your situation.

Be sure to research interest rates, fees, and repayment terms to find the right fit for your needs.

Step 3: Determine Your Loan-to-Value (LTV) Ratio
The loan-to-value (LTV) ratio is the percentage of the property’s value that the bank is willing to lend you.

• Residents: For residents, the LTV ratio is usually 80% for properties under AED 5 million and 70% for properties above AED 5 million.
• Non-Residents: For non-residents, the LTV ratio is often lower—typically around 60% to 70%. This means you’ll need a larger down payment (30-40% of the property’s value).
   

Step 4: Get Pre-Approval
Before you start house hunting, it's a good idea to get mortgage pre-approval. This shows sellers that you’re serious and know how much you can afford to borrow. To get pre-approval, you’ll need to submit:

• Proof of income (salary certificate or financial statements)
• Passport and visa copies
• Bank statements (usually the last 6 months)
• A completed mortgage application form
   

Step 5: Find Your Property
Once you’re pre-approved, you can start searching for your property. It’s essential to stick to your budget, keeping in mind the mortgage amount you were approved for. Make sure to consider additional costs, such as:

• Property valuation fees
• Mortgage processing fees
• Property registration fees
   

Step 6: Finalize Your Mortgage Application
After you’ve chosen your property, you’ll need to finalize your mortgage application with the bank. At this stage, the bank will conduct a property valuation to ensure its worth matches the loan amount. If everything checks out, they’ll offer you the mortgage based on your pre-approved terms.

Step 7: Transfer the Property
Once your mortgage is approved, you can proceed with the property transfer. This is when the property is officially registered in your name, and you’ll pay the remaining down payment and registration fees. Your bank will then release the mortgage funds to the seller.

Getting a Mortgage as a Non-Resident
While residents enjoy more flexible mortgage terms, non-residents can still take advantage of Dubai’s booming real estate market. Here’s what non-residents should keep in mind:

• Higher Down Payment: As mentioned, non-residents typically need to pay a higher down payment (30-40%).
• Additional Documentation: Non-residents might need to provide extra documentation, such as proof of income from their home country and tax returns.
• Limited Mortgage Providers: Not all banks offer mortgages to non-residents, so it’s essential to research which banks do and compare their terms.

Despite these differences, many non-residents successfully secure mortgages in Dubai, making it an attractive option for foreign investors.

Conclusion

Navigating the mortgage process in Dubai can seem complicated, but with this step-by-step guide, you’ll be well-prepared. Whether you're a resident or a non-resident, securing a mortgage in Dubai opens the door to owning property in one of the world’s most dynamic real estate markets.

At Alliance Properties, we’re here to guide you through the entire process and help you find the perfect property. Get in touch with us today for expert advice on mortgages, real estate investments, and more!