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A Guide To Mortgage For Expats in Dubai

Now You Can Buy Your Dream Home Without Having To Wait Until You Afford One. Buy Your Mortgage For Expats in Dubai Today!It wasn’t until the last few decades that the UAE, and particularly Dubai, became the go-to destination for expats looking to explore and try their hand at real estate. However, as Dubai has evolved into the hallmark of the world’s largest buildings and business hub, buying a property has become more expensive yet easier for expats, thanks to readily available mortgages for expats looking to invest in real estate. With the most affordable mortgage rates and easy installments, one can now purchase their dream home without waiting until they can afford one.

However, before hiring Mortgage Services for Expats in Dubai, it’s important to understand how Dubai mortgages work. Money Maestro’s Mortgage Experts have explained what you need to do to get on the path to owning a home in Dubai in this guide. So, without further ado, let’s get started:

Who Can Buy Mortgages in Dubai?

Where the UAE and Dubai have become popular destinations for expats, with business opportunities and living standards constantly breaking records, there is always the temptation to buy your property. However, not everyone can afford to pay all at once, where the mortgage comes in. Foreign residents or expats can obtain a mortgage in the UAE, but they must meet certain requirements.

First, depending on the area you’re buying in and the rules set by lenders, you should have spent at least six months to a year in your current job to be eligible for a mortgage service for expats in Dubai. Self-employed borrowers must have been in business for at least two years. If you work for a government agency, a bank, or a multinational business, you will almost certainly breeze through the process. You must also have a clean credit history to apply for a mortgage, so do not apply for a loan until you check your credit files. However, if your employer is a small or newly established business, you may be turned down despite your creditworthiness.

Types of Mortgages

You can get mortgages in Dubai on either a fixed or variable rate basis. Fixed terms usually flex to as long as five years but can also be kept short to one year. Once the mortgage term ends, you must move back to the bank’s variable rates.

One advantage of having fixed rates is you have a certainty about the size of repayments, but if you expect the interest rate to fall soon, you can opt for a variable rate. With variable rates, terms are usually set for 25 years, and you have to pay the loan before 70.

How Much Can You Borrow?

Expats buying a residential property worth AED 5 million need to have a deposit of at least 25%, with more expensive properties requiring a deposit of at least 35%. But if you want to invest in a property and then rent it out, you’ll need to go for a buy-to-let mortgage, which requires an initial deposit of around 40-50%.

The amount you can borrow is also correlated with your future earnings, as you cannot buy a mortgage worth more than the anticipated income for your next seven years. However, one advantage of buying a mortgage for expats in Dubai is that mortgage payments are capped at 50% of your monthly income, which is way more than the cap of 35% maximum in most European countries. If you’re into technology and computer science, you’ll surely have a great time with our comprehensive blogs.

How To Apply For A Mortgage?

Although you can approach the bank directly for a loan, getting a mortgage broker’s assistance can be a great step in the right direction. Mortgage brokers can help you navigate the odds of the local market and find the right deal for you in the least time. The main steps for getting a mortgage in Dubai are:

  • Deciding on whether to approach the lender directly or through a broker
  • Researching finding the right type of mortgage to meet your needs
  • Obtaining agreement in principle for the bank and a letter of proof
  • Finding a property that suits your budget
  • Depositing the initial payment to confirm your purchase with the completion date
  • On the completion date, the lender will release funds to the seller