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Getting A Mortgage In Dubai: 6 Tips For Expats

by Steve Johnson


If you’ve been an expat in Dubai for a while and want to buy a new home, getting a mortgage can make the process easier. In Dubai’s rapidly expanding real estate market, you must always be one step ahead of the competition when making an offer to the seller, or you will miss out on your dream home. All you need to do is create a Non-resident Mortgages Dubai plan if you cannot afford to pay the entire amount at once. The Mortgage Experts at Money Maestro have compiled the best recommendations for you to help you stay ahead of the competition in securing your property in this article. So, let’s get into the details to help you find the best mortgage deal in the least amount of time:

Make Your Down Payment

The down payment is the most difficult hurdle to overcome when purchasing a home with a mortgage. Down payment is a faith deposit and should always be made as soon as possible. To secure Non-Resident Mortgages in Dubai, you must put down 20% of the purchase price, where your savings and other investments come into play. As a result, it’s critical to have your finances in order before making an offer. 

Get The Documents Ready

Obtaining a mortgage necessitates a substantial amount of paperwork. This is why it’s critical to keep your files and credit history organized and clean to present a strong case to the lender. The documents required when applying for a mortgage vary depending on the bank. Still, the most common documents are a copy of your passport, proof of current residence, Emirates ID, salary certificates, trading license for self-employed individuals, and credit history or bank statements. You may also be asked to provide proof of employment and current liabilities.

Check Your Credit

Banks conduct credit checks to verify and assess the type of borrower you are. Your credit score is directly affected by how you manage your finances, and it can make or break your case in front of the broker. If you have a long track record of responsible credit use, your rating will skyrocket; however, you may be red-flagged if you have missed even a couple of payments, had mortgage defaults or filed for bankruptcy.

Many reputable mortgage websites will allow you to check your credit score, or you can hire the services of a mortgage broker to assist you in evaluating your credit ratings.

Boost Your Borrowing Power

Most UAE banks limit mortgage deals to no more than 25% of your monthly income. This is why you should pay close attention to your outstanding debts, including credit cards, personal loans, car loans, ongoing financial obligations, and lease agreements. You’ll be left with only your disposable income, which banks use to determine how much you can afford to pay in monthly repayments.

Consider Tenure and Fees

The maximum period for mortgage repayment in the UAE is 25 years, and you should repay it before the age of 70. However, the interest rate is extremely important when you are lending for this long. You pay less each month with a long-term plan, but you pay much more than with a short-term 5-year plan due to higher interest rates on long-term plans. On the other hand, a short-term plan may cost more per month, but you will pay less overall due to lower interest rates. When deciding on a repayment period, you must also consider setup fees, conveyancing fees, and penalty fees.

Get A Mortgage Pre-Approval

If you’re looking to buy your dream home in Dubai, getting your mortgage pre-approved can give you more confidence and purchasing power. Mortgage pre-approval informs you of how much you can afford to spend. Furthermore, you can end up locking in a great mortgage rate offer ahead of your competition, signaling to the sellers that you have no problem financing the purchase and are interested in purchasing their property. This will ultimately strengthen your case in front of them, making them more likely to accept your offer over others. So, if you’re an expat looking for the best non-resident mortgages in Dubai to finance your purchase, you’ve come to the right place!

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