Securing a Mortgage in Dubai as a Non-Resident: What You Need to Know
People from all over the world are attracted to Dubai due to the city's increasing luxury, business, and leisure. It has the best amenities and an eye-catching cityscape.
As Dubai is a place where different cultures people live, the demand for real estate keeps rising due to its population. The following reasons have non-residents considering investing in Dubai's real estate market:
- Promising tax laws
- Less taxes
When people who are non-residents like to purchase real estate in Dubai, they always think more about finance. It's not that everyone can pay the full amount for the home they need to get financial help and also need the right Mortgage services in Dubai.
Mortgages are, therefore, one practical way to realize your desire. Can non-residents, however, mortgage a home in Dubai? How ought they to approach this?
For the solutions, see this thorough information on Dubai mortgages for non-residents.
Non-Residents in Dubai: Can You Get a Mortgage?
All individuals desiring to acquire a vacation home, primary domicile, or investment property in Dubai are eligible to apply for a mortgage, irrespective of their residency status.
In addition, non-resident mortgages provide Dubai investors with the following benefits:
- Increases in loan amounts
- More adaptability
A warning, though: non-resident investors have fewer mortgage options than UAE nationals.
What are the Dubai non-resident mortgage eligibility requirements?
Application for a mortgage must be preceded by confirming your eligibility. Please be advised that these requirements are solely for reference and could differ among UAE banks.
Things to consider are as follows:
Professional Standards:
Application for a non-resident mortgage requires either regular income or self-employment.
Age Requirements:
Several financial institutions set minimum age requirements. An example of a requirement for non-resident applicants to apply for a mortgage with Abu Dhabi Commercial Bank PJSC is a minimum age of 21.
Quality of Earnings:
Critically important is being able to meet the bank's minimal monthly revenue criterion. There may be differences in this criterion for non-residents and expatriates living in the UAE.
Approved Properties:
A few banks only allow mortgages to be issued through developers and projects on their approved list. Thus, confirm the approval of the home you wish to buy before applying for a loan.
Verified Credit History:
Non-residents wishing to apply for a mortgage must have a high credit score. A credit score of 700 or more is usually seen as acceptable. But, specifics may vary from bank to bank.
Need for Citizenship:
To qualify for a non-resident mortgage in Dubai, you may be required to be a legal resident of one of the countries on the bank's list.
What documents do non-residents need to get a Dubai mortgage?
Non-residents must file specialized mortgage applications. Other criteria may apply depending on the transaction and property circumstances.
Mortgage applications from non-residents in Dubai need the following documents:
- One form of identification is a copy of the passport.
- Proof of residency.
- You might prove you have the money using three to six months' worth of bank statements.
- Furthermore, to get a mortgage, the bank could need non-residents of Dubai to provide extra documents. Such records might contain:
- Current loan information.
- Pay stubs or employment certifications may be needed for those getting paid.
- In some cases, you'll have to submit tax returns.
People who work for themselves could have to provide a trade license together with audited financial records.
Proof of residency may include a bank statement or utility bill from the non-resident's own country.
Additionally needed papers for non-residents are the title deed and the sale and buy agreement.
What are the main aspects of Dubai non-resident mortgages?
Learn about Dubai non-resident mortgages' unique features.
Loan Amount:
The selected bank and the individual's financial status determine the extent of the financial support.
Mortgage Rates:
There is a wide range of interest rate possibilities offered by different Dubai banks. Investigating the benefits of both reduced and flat interest rates may help you have a better grasp of the situation. Elite, one of the best Mortgage consultants in UAE, can provide you with the right financial help.
Although expat residents in Dubai often pay lower loan rates than non-resident applicants, the gap is only sometimes that wide.
Loan Period:
loan period of 25 years is available to resident expats, although non-resident investors may be subject to shorter terms depending on their profiles.
Besides, there are financial institutions that have age requirements, such as a maximum of 65 years for salaried applicants or 70 years for self-employed borrowers, which must be met during the life of the loan.
Loan-to-Value Ratios:
For first-time homebuyers who are not nationals of the United Arab Emirates, the smallest down payment required by law is 20%. The largest value of a property that can be covered is 5 million AED.
An extra 30% down payment is required from non-UAE nationals for houses priced above 5 million AED. However, there are financial institutions in the UAE that impose a cap of 50% on the amount that non-residents can borrow for a property.
For non-residents looking for mortgages in Dubai, it is crucial to understand these important factors. That way, they can achieve their financial goals with the help of well-informed judgments.
Elite Mortgage Consultants Dubai is an industry leader in providing individualized service to non-residents seeking mortgages on Dubai real estate. The mortgage in Dubai is complex, and our team of experts knows the ins and outs of the city and the difficulties that foreigners encounter. From our first meeting to helping you find a low-interest loan, we are here to help you every step of the way with your mortgage. We simplify the application process by leveraging our knowledge and connections with financial institutions. It allows us to provide our clients with a seamless and efficient experience. When it comes to investing in Dubai's booming property market, Elite is the go-to choice for international and expat investors alike.