Dubai is rapidly becoming one of the most attractive locations for property investment, thanks to its thriving economy, tax-free property transactions, and exceptional quality of life. From single professionals to young families, an increasing number of people are making Dubai their home. And with the number of premium developments now bringing the principles of community living to the suburbs, there's a surge of interest in buying property in Dubai with a mortgage.

Can non-residents and expats obtain a mortgage in Dubai? In this article, we'll examine the process for securing mortgage loans for non-residents in Dubai and review the eligibility criteria for property investment financing. There are strict guidelines on who can obtain financing, whether you're buying property as an investment, planning to buy-to-let, or want to make Dubai your permanent place of residence. With these hints and tips, you should be able to navigate the finer aspects of the mortgage process for international buyers in Dubai.

Can Non-Residents Get a Mortgage in Dubai?

Non-residents, including expats, can acquire property investment financing in Dubai relatively easily. The UAE mortgage rules for non-residents, however, do come with some caveats, and in Dubai, these extend to include the exact locations where non-residents can buy property.

Eligibility Criteria for Overseas Investors

If you want to buy property in Dubai with a mortgage but don’t currently live here or are on a limited visa, you can still be eligible for a mortgage or loan as long as you meet the specific criteria. Currently, the requirements for borrowing in Dubai for non-residents include:

• A minimum income of AED 15,000 to 25,000/month. The exact amount will depend on the bank or lender and the type of mortgage or loan you apply for. Lenders will tend to look more favourably on applicants with higher incomes and obvious assets.
• The ability to make an initial contribution (known as the Loan-to-Value ratio). If you’re a non-resident applying for a mortgage, you must be able to pay a down payment of not less than 20%, and sometimes as high as 50% of the final property price. The higher the deposit you can pay, the better your mortgage terms are likely to be.
• There are maximum and minimum ages for borrowers, you must be over 21 to apply for property financing in Dubai, and, depending on the individual mortgage or loan provider, you must not be older than 60-70 years at the end of the loan period.
• International property investors will also need to supply personal details, including a valid passport, proof of income, bank statements, and a good credit record in their country of origin.

Step-by-Step Mortgage Application Process

The mortgage process for international buyers in Dubai is very straightforward.

• Check your eligibility – remember that you must demonstrate a minimum monthly income of at least AED 15,000, meet the minimum and maximum age requirements, and have a good credit rating.
• Get all your documents ready – you will need to have a valid passport and visa, proof of income (these include salary certificates, tax returns or pay slips), at least six months’ worth of bank statements up to the current date, a good credit report from your country of origin, and the property details from an approved developer and in a location that allows properties to be purchased by non-residents.
• Apply for pre-approval - This confirms that you meet the eligibility criteria, sets your borrowing limit, and confirms your loan-to-value ratio, which is typically between 60% and 70% for non-residents. It will also outline the interest rate charged by the lender, as well as the available tenure options. All of this helps to set your budget before you start looking for a property to buy.
• Choose your property – for non-residents, it must be located in a freehold area and approved by the Dubai Land Department.
• Submit your final mortgage application – Once you've chosen your property, your lender will conduct a valuation to ensure it meets your pre-approval limits. You will then finalise the agreement and pay a down payment, usually around 35-40% of the final cost. Bear in mind that there will be additional fees to pay as well, so ensure you have the necessary finances in place to cover these, in addition to your down payment.
• Register with the DLD – Once the paperwork is signed, you must register the purchase with the Dubai Land Department. 

Benefits of Using a Mortgage to Buy Property in Dubai

Buying property in Dubai with a mortgage offers a range of benefits. It's an affordable and flexible way to buy property in Dubai, whether you're doing so as a financial investment or to live here full-time. A buoyant property market also means your ROI is excellent. Because there are no property taxes in Dubai, you can benefit from the capital appreciation of your investment without having to invest the full amount up front.

One of the significant benefits of using a mortgage to purchase property in Dubai is that it can make you eligible for a residency visa, which extends the time you can live and work in the country, although this requires that you own property worth AED2m+; for mortgaged properties, at least 50% of the value must be paid off at the time of application.

With premium developments such as the exceptional Ghaf Woods, the choice of long-term, sustainable communities where non-residents can make a home for themselves and their families makes Dubai a truly extraordinary lifestyle experience.

Our Top Tips for Securing the Best Mortgage Rates as a Non-Resident

• Use a mortgage calculator for Dubai non-residents to find the best mortgage rates.
• Employ the services of a reputable mortgage broker in Dubai who will be able to find the best rates for you, especially if you don’t currently live in Dubai and are purchasing your property remotely.
• Choose the correct type of mortgage for you, such as a conventional loan with either a fixed or variable rate, or a Sharia-compliant loan, where there is no interest but the loan provider sets the repayment instalments, effectively turning a purchase into a lease arrangement.

With mortgages for non-residents becoming increasingly easier to obtain, Ghaf Woods by Majid Al Futtaim is a perfect choice for investors and those looking to make Dubai their home. To learn more about the Ghaf Woods, please get in touch with us today