Mortgage in Dubai
General Requirements:
Under Dubai law, mortgages can be obtained by both residents and
non-residents of the UAE, for a period of up to 25 years until the age of 65. This means,
that if a client is 55 years old, they can get a mortgage for a maximum of 10 years. However
there is an exception for residents who are self-employed and
Gold visa holders, for them it is possible to obtain a mortgage up to the age of 70.
For residents, the first mortgage is granted up to 80% of the value of the property, while the second and all subsequent mortgages are covered by banks up to 60% of the value of the property.
For non-residents, the maximum mortgage is from 50 to 60%.
The period of obtaining a mortgage can take from 1 to 2 months.
For projects in the "off plan" stage under construction it is impossible to obtain a mortgage, the exception may be at the pre-delivery stage, when before the delivery of your object remain a few months.
When the project stage "handover payment"
(when the last instalment is left), then the client can get a mortgage to
to cover that last instalment. For example, if the payment plan was
divided into two equal parts (50/50), then a mortgage loan could be taken out for the remaining 50 per cent.
The mortgage process consists of several steps:
STEP 1:
First, you need to determine the category of mortgage buyer. Find out if you are eligible to apply for a mortgage, by identifying your eligibility.
mortgage, to do this you need to identify 2 key points:
1. Whether you are a resident or non-resident.
2. Whether you are an employee or a private entrepreneur.
Then depending on the answer we check the following criteria:
For salaried employees:
Residents - minimum salary of at least AED 10,000.
Non-residents - minimum salary of at least AED 15,000.
At least 6 months of work experience in the company
For private entrepreneurs:
Residents - minimum company turnover of at least AED 1 million.
Non-residents - minimum company turnover not less than 1 million dirhams.
(after taxes).
Length of existence of own company - at least 1 year.
STEP 2:
Collect the necessary documents to submit for "pre-approval" to the bank.
Required documents to obtain a mortgage in Dubai if you are a non resident with salary (non resident with salary):
1. Copy of passport
2. Extract from the credit bureau in English
3. Personal account statement from the bank for the last 6 months in English
(notarised translation)
4. Salary certificate from the employer in English - pay slip for accrued salaries for the last 6 months in English.
pay slip for accrued salaries for the last 6 months in English
5. Tax payment certificate in English
For non resident self-employed:
1. Copy of passport
2. Bank statement of personal account for the last 6 months in English (notarised translation)
Personal bank statement for the last 6 months in English (notarised translation) 3.
3. Company bank account statement for the last year in English.
(notarised translation)
4. trade licence - VAT certificate
5. VAT payment for the last year
6. List of employees
7. Memorandum of association
8. Extract from the credit bureau for the company in English
9. Credit bureau statement of personal account in English
10. Tax payment report
For residents with salary:
1. Copy of passport
2. emirates ID card (emirates ID). 3.
3. Residence visa
4. Bank statement for the last 6 months or from the date of opening a bank account (if less than 6 months).
bank account (if less than 6 months)
5. Salary certificate from employer (salary certificate)
6. A pay slip for all wages earned (pay slips).
7. Credit bureau statement (AECB report)
For resident self-employed:
1. Copy of passport
2. Copy of Emirates ID card (emirates ID). 3.
3. Residence visa
4. Trade licence
5. VAT certificate
6. VAT payment for the last year
7. List of employees
8. Memorandum of Association
9. Personal account statement from the bank for the last 6 months
10. Company bank statement for the last year
11. Credit bureau statement for the company (AECB Report)
12. Credit bureau statement from a personal account (AECB Report)
STEP 3:
Once the bank has provided confirmation for a mortgage in Dubai, you need to
Sign a MOU (Memorandum of Understanding), which is a document that is an agreement or understanding between the bank and the applicant.
is an agreement or understanding between two or more
parties. The MOU sets out the basic principles, objectives and intentions on which the co-operation or agreement between the parties is based.
on which the co-operation or agreement between the parties is based, in simple words a contract with all the details.
STEP 4:
Filing the property documents with the bank:
For secondary properties:
● MOU.
Title Deed / Search Certificate
● Liability letter
● Floor Plan
For primary:
● SPA
Completion Certificate
Handover Notice
SOA
● Floor Plan
STEP 5:
Once all documents have been verified, the appraisal company conducts an appraisal of the apartment's
the value of the flat, a process that involves conducting a property appraisal,
to determine its current market value. Appraisers take into account
Various factors, including the size, location, condition, and other
apartment characteristics
