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Finance and Payment Plans
Dubai mortgages for overseas buyers
UAE banks lend to non residents and the application can be done remotely. Expect to put down 40 to 50%, with the bank lending 50 to 60%, and occasionally up to 65% on completed property. Off plan lending is limited and usually capped at 50%. Most investors use a payment plan and then pay cash or take a mortgage at handover.
A Dubai mortgage is possible if you live overseas, but it works differently from a buy to let mortgage at home. The deposit is bigger and the paperwork is heavier. Here is what to expect before you speak to a broker.
How much banks will lend
| Item | Typical position for a non resident |
|---|---|
| Your deposit | 40 to 50% |
| Bank lends | 50 to 60%, occasionally up to 65% on completed property |
| Off plan | Limited, usually capped at 50% |
| Minimum loan | £100,000 to £200,000 (AED 500,000 to 1 million) |
| Maximum term | 25 years, with the loan ending by age 65 to 70 |
| Minimum income | £3,100 to £5,100 a month (AED 15,000 to 25,000), depending on the bank |
| Debt cap | All debt payments, including those at home, limited to 50% of income |
Criteria differ by bank. Completed homes are what most banks will lend on.
What you will need
- Passport and proof of address
- Six months of bank statements
- Payslips and an employer letter, or two years of accounts if you are self employed
- A credit report from your home country
What it costs
- Bank fee. Up to 1% of the loan.
- Mortgage registration. 0.25% of the loan plus about £60 (AED 290).
- Valuation. £500 to £700 (AED 2,500 to 3,500).
- Life cover. Required by the lender.
The route most investors take
Most of my investors do not start with a mortgage. They buy off plan on a payment plan, which needs no lender at all, then pay cash or take a mortgage for the final payment at handover. By then the property is complete, which is when banks are most comfortable lending.
Others release equity from property they already own at home. That is often simpler and quicker than a UAE mortgage, and the interest rate can be lower.
If you become a UAE resident
Residents get better terms, with higher borrowing. Owning property can qualify you for residency, which I explain in residency through property.
Use a broker
Criteria vary a lot between banks, and a good broker will compare lenders for you. I can introduce you to mortgage brokers in the UAE who work with overseas buyers, and to currency and tax specialists if you need them.
How I can help
Send me your budget and what you want to achieve and I will come back with two or three featured projects that fit, each with a 5 year illustration of equity and rental income. You can see the kind of property I recommend in the featured projects, read the full picture in my free 26 page guide, send me your brief, or book a call with me.
Talk to me directly
Prefer to talk it through? Book a call with me.
Pick a time that suits you. We will go through your budget, your goals and what is available now. No cost and no obligation.
Keep reading
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