A guide on Non Resident mortgage in Dubai, How to buy a UAE property with Dubai Mortgage for Non Residents

Many people are attracted to purchasing a property in UAE maybe because of quality of life, tax-free income, and more savings. If you are a non -resident and decide to settle permanently in UAE it is best to own a home here to escape from skyrocketing rental charges then you should avail offers available on Dubai mortgage for non residents

As of now many non-residents started investing in buying villas and apartments in the UAE, as they are comfortable with this lifestyle and some people prefer tax-free capital gains and few other needs tax-free rental yields that can reach about 10% primarily on the smaller apartments. The changes that occurred in UAE regulation recently have further opened up UAE properties to overseas buyers and brought a significant impact on their industry.

dubai mortgage for non residents

What properties can Non-Residents Purchase on Mortgage in Dubai & UAE?

The UAE properties are classified into three regions namely Dubai, Abu Dhabi, and northern emirates by banks for mortgage purposes.

Abu Dhabi property

Non-GCC people like the people who do not hail from Kuwait, Bahrain, UAE, Oman, Qatar, and the Kingdom of Saudi Arabia are eligible to get freehold and leasehold property in specific investment zones around Abu Dhabi. The areas are Reem Island, Yas Island, Al Reef Village, Raha Beach, Saadiyat Island, and much more.

Dubai property

If you are a foreigner who is not currently living in UAE, then Dubai law states that you are capable of purchasing freehold property in any of the twenty-three freehold areas namely Emirates Hills, Al Barsha South, Dubai Marina, Sheikh Zayed Road, Palm Jebel Ali, Palm Jumeirah and much more. where you can also get from any of the leasehold properties.

The Northern Emirates properties

A non-resident can purchase both leasehold and freehold properties in Umm al Quwain, Sharjah, Ras Al Khaimah, and Ajman, where you can buy most of the property on a leasehold basis.

Can non-residents get a mortgage to purchase property in Dubai?

Absolutely but with some conditions, Non-residents are provided rights to buy a mortgage from UAE lenders, As per UAE mortgage cap law, a non-resident has to make at least a down payment of 25% of the property value plus the cost of purchase, Some lenders may ask for 50% LTV.

The percentage of the downpayment will be increased to 35% plus the cost of purchase it property worths above AED 5 million(It is 30% for UAE nationals).

If you are supposed to take a mortgage for a second or third property, as an investment, for example, you’ll need at least 40% of the property value to cover your down payment.

Down payment requirements for non-UAE nationals (expats and non-residents)

As per Central Bank of UAE guidelines

Property type Property price Maximum LTV (loan-to-value ratio) Minimum DownPayment Required
First property Mortgage Under AED 5 million 80% 20%
First property Mortgage Over AED 5 million 70% 30%
Second, third+ property Any price 60%  40%
Off-plan / under-construction property Any price 50% 50%

Documents needed for getting a Non-Resident Mortgage in Dubai

The Documentations requirement for Dubai mortgage for non residents changes according to your profile,

In basic documentation; many banks in UAE will pull your credit report from AI Etihad credit bureau or ask you to provide a credit report from your resident country, a bank statement of the last 2 years, details about your credit cards details of all liabilities including credit cards and loans, etc, a whole heap of documents.

For a 50 % lending option, a scanned of your passport(to prove you do not hold a UAE visa) and your last 6 months’ bank statements in your home country and income proof. You will not be asked for any liability letters.

You will need to attend a mortgage offer letter signing in Dubai at some stage during the process, and this is mandatory and at the final step of purchasing at the DLD (Dubai Land Department).

It is better to consider the additional costs involved in a property transaction such as a property valuation fee, the realtor’s commission, the land department transfer fee, and a charge to register the mortgages

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Can non residents get a mortgage in Dubai ?

Is it hard to get a Dubai mortgage for Non residents ?

No, Its easy to get a mortgage in UAE, if you have enough down payment and documents to prove your regular flow of income.

How much Down payment do you need to get Mortgage in Dubai?

Downpayment requirements are based on your residents status. In general, for expat and non residents 25% downpayment is required to get a mortgage in dubai.

Can NRI buy property in Dubai on Mortgage?

Yes, NRI can buy property in Dubai? Non resident indians can buy property in dubai and also get dubai mortgage for non residents

Original Post Date : Jan 8, 2021 , Updated on : Oct 26, 2021