Real estate in Dubai cannot be called cheap. And yet, the demand for it in 2024 increased by 40-50% compared to last year. Mortgages in Dubai are of particular interest to Russians. Conditions for foreigners are different.
Content of the material
- Is there a mortgage in Dubai in 2024
- Is it worth investing in real estate in Dubai
- How to get a mortgage in Dubai: stages of registration
- What are the costs incurred by a non-resident when applying for a mortgage loan?
- Requirements for the borrower under the legislation of Dubai in 2024
- Where a non-resident can buy real estate with a mortgage
- Banks’ claims
- At what age can you take out a mortgage?
- Salary level
- Availability of other loan payments: how it affects approval
- Late payments: responsibility
- Mortgage Interest Rate in Dubai
- What determines the interest rate of a mortgage loan
- Which banks are profitable to take a mortgage from: TOP-3
- Legal issues for married couples
- How to get a resident visa after buying a property
- Installments from developers
- Moving to Dubai with family and children: personal experience, video
- Question & Answer
Is there a mortgage in Dubai in 2024
You can buy real estate in Dubai with a mortgage. But non-residents are very often refused. You will need to make an initial payment – at least half of the cost of the property. You will have a much better chance of getting approved if you apply for a resident visa beforehand. Foreigners can get a mortgage in the amount of 70-75% of the value of the property.
Mortgages are provided for a period of 1 to 25 years. Special conditions are imposed on the applicant’s minimum income, credit history, much depends on the type of real estate and its territorial location.
The facility must have already been commissioned or completed in less than 2 years. It can be located in Freehold zones (the unconditional right of ownership by foreigners).
Read more about the possibility of obtaining a mortgage in Dubai for foreigners in the telegram channel at the link https://t.me/homeindubai/676.
Is it worth investing in real estate in Dubai
Investing in real estate in Dubai has its advantages:
- Guaranteed yield from 7% per annum;
- Obtaining a golden resident visa for 10 years when buying real estate from 2,000,000 dirhams;
- High standard of living;
- Attractive business and tourist center;
- Constantly growing real estate value;
- Loyal tax system.
- Mortgage in Dubai for foreigners.
- The government of Dubai in every possible way promotes the attraction of capital, creates convenient and simple conditions for investors. The economy is developing more and more rapidly every year. Dubai’s real estate market is the most attractive and stable today.
How to get a mortgage in Dubai: stages of registration
To take out a mortgage in Dubai, you need:
View mortgage rates and bank conditions.
You can do this yourself or seek help from an intermediary.
Collect a package of necessary documents:
Completed mortgage application.
Passport.
Emirates ID.
Certificate of income for the last six months, confirmation of additional income.
Certificate of family composition.
Entrepreneurs submit financial statements.
Send a mortgage application to the bank for consideration.
Within 3-5 days, a bank employee will carefully check your data and solvency.
Within 2 months, you need to find an apartment, villa or other property that suits you.
An agreement of intent is signed, and an initial payment in the form of a check is required.
The bank assesses the real value of the object.
A contract is concluded, the object is registered with the Dubai Land Department.
The original certificate of ownership remains in the bank.
What are the costs incurred by a non-resident when applying for a mortgage loan?
If you decide to buy an apartment in Dubai with a mortgage, you should take into account the additional costs that will appear:
- DLD fee: 4% of the value of the property;
- DLD administrative fee: 1.1 thousand USD + 5% VAT;
- title insurance fee: 140 USD;
- agency fee: 2% of the sale price + 5% VAT;
- life insurance (mandatory when taking a mortgage): 0.3-1% of the value of the property;
- Consideration of the application: 1% of the value of the property.
And of course, do not forget about the down payment.
Requirements for the borrower under the legislation of Dubai in 2024
The legislation of Dubai imposes general requirements on the borrower:
- The age is from 21 to 65 years for contract workers, up to 70 years for entrepreneurs.
- Resident of the UAE.
- Availability of sufficient income.
- Making at least 25% of the value of the property as a down payment.
- Doing business or official employment in the UAE.
- Property in the UAE (desirable, but not required).
Banks have their own additional requirements.
Where a non-resident can buy real estate with a mortgage
Mortgages for non-residents are available in free zones where foreigners can fully own the property after purchase.
By purchasing real estate in Dubai Marina, Palm Jumeirah, Business Bay, Jumeirah Beach Residence, you will not have to worry about it falling in price or not generating rental income. In total, there are more than 20 Freehold zones in Dubai.
Banks’ claims
Banks are more detailed about the general requirements and can add their own.
At what age can you take out a mortgage?
The minimum age is 21 years. But the age limit will depend on the term of the mortgage. If a person is 55 years old, he works under a contract, then he will not receive a mortgage loan for 25 years. The maximum term is 10 years.
If you want to get a mortgage for 25 years, then at 40 you have every chance of getting it.
Salary level
The required salary level in Dubai will depend on the type of property chosen, the cost.
The minimum level for cheap real estate is $3,000 per month, the desirable income is from $4,500 per month.
| Property Type | District | Income Per Month. Dollars |
| Apartment | Cheap Motor City, Dubai Silicon Oasis, International City, Discovery Gardens | Over 3,000 |
| Apartment | Popular: JVC, Business Bay, JLT, Downtown and others | 4 500-5 500 |
| Villas | DAMAC Hills 2, Dubailand and JVC | 5 000-6 500 |
| Premium villas | Palm Jumeirah, Arabian Ranches, Dubai Hills Estate | 14 500-48 500 |
Availability of other loan payments: how it affects approval
A person can have multiple loans. Then it is important that his income meets the requirements:
- Payments on all loans are less than 50% of monthly income.
- Each family member has more than 3500 dirhams.
A person’s credit history in the UAE is reflected in the Al Etihad Credit Bureau. Having a good history is an added benefit to mortgage approval.
Late payments: responsibility
You may pay later than the due date for a number of reasons. A delay of up to 30 days does not threaten you with anything, except for calls from the bank. When the deadline is exceeded by a month, the bank enters negative information about you in Al Etihad. Then you are unlikely to get the next loan.
When you declare that you cannot pay on a mortgage loan, the bank registers the property for itself through the court to pay off the debt. The creditor is likely to be deported from the UAE.
Mortgage Interest Rate in Dubai
The mortgage rate in Dubai can be:
- fixed for the entire loan period;
- floating (the amount of interest varies, depends on EIBOR – the interbank rate of the central bank of the UAE, % is accrued on the balance of the debt).
- discounted (there is a grace period for which a reduced rate is assigned)
Before making a decision on choosing a bank, it is necessary to carefully evaluate the mortgage rate. Often, a fixed rate is set for a short period, then a margin is added to it.
What determines the interest rate of a mortgage loan
Mortgage interest depends on a number of factors:
- economic development in the country;
- inflation;
- demand for real estate;
- Eibor’s rate, its current amount can be specified on the centralbank.ae website.
- The fixed rate is set higher than the rate of the Central Bank of the UAE, the floating rate depends on the above factors.
It is possible to repay the mortgage early, but for this you will have to pay the bank from 10 thousand dirhams (1% of the mortgage amount).
Which banks are profitable to take a mortgage from: TOP-3
Each bank tries to promote its services, but not all work with foreigners and non-residents. At the moment, it is worth studying the conditions for mortgages in banks:
Emirates NBD.
One of the largest banks in the UAE. For 9 months of 2022, profits increased by 25%. The share of lending has increased significantly.
Rate = EIBOR + 1.99% per annum.
HSBC.
The Bank covers 63 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.
Rate = EIBOR + 1.59% per annum.
Mashreq.
One of the leading financial institutions in the Middle East and North Africa. For 9 months of 2022, operating profit increased by 24.3%, the volume of loans since the beginning of the year increased by 12%.
Mortgage for non-residents up to AED 10,000,000, up to 50% of the value of the property for up to 25 years.
Legal issues for married couples
The owner of the property is considered to be the person or people who are indicated in the mortgage agreement and the certificate of ownership.
If all documents are issued to 1 of the spouses, then the other does not have the right to claim real estate under the law in the UAE.
It is believed that he intentionally renounced the property in favor of his spouse. In this case, during a divorce, real estate is not counted as jointly acquired property.
How to get a resident visa after buying a property
You will be able to obtain a resident visa if you make a down payment of more than AED 1,000,000 as a down payment. The issuance of 3-year visas in Dubai for the purchase of real estate from 750,000 dirhams has been temporarily suspended.
- After the bank issues a mortgage, you receive a confirmation letter from the bank that the investor bought the property with a mortgage loan.
- The seller of the property signs the act of acceptance and transfer of the object.
- To apply for a resident visa, you will need a copy of the certificate of ownership.
- Medical examination with a conclusion on the absence of HIV infection and tuberculosis.
- It is necessary to submit your biometric data at one of the centers.
- Fill out an application for a resident visa.
In addition to the above documents, you will need:
- Passport.
- Photo 3*4.
- Criminal record certificates in the country in which you have citizenship and in the UAE.
Installments from developers
A good alternative to a mortgage can be the purchase of real estate in installments. Many residential complexes in Dubai are sold at the off-plan stage – the beginning of construction or the design stage.
Developers often offer installments: initially 10-40% is paid, and the rest of the amount is paid in stages, the terms are spelled out in the contract. It is difficult to find installments after the completion of construction, but there are also such options.
Moving to Dubai with family and children: personal experience, video
In this video, our heroes will tell their personal experience of moving to Dubai with family and children:
- How they moved to Dubai,
- found a job or started your own business,
- What are the salaries in Dubai,
- how and where is the best place to enroll children in school, the cost of education and education for one child.
- How they chose an area and bought real estate.
