How to Get a Mortgage in Dubai: A Complete Guide for Expats & Investors

Dubai’s real estate market offers attractive mortgage options for expats, UAE residents, and investors. With competitive interest rates and flexible repayment terms, securing a home loan in Dubai has become a popular financing choice for buyers.

However, understanding the mortgage process, eligibility criteria, and bank requirements is crucial before applying. Whether you're buying a ready property or an off-plan investment, this guide explains how to secure a mortgage in Dubai hassle-free.

🔗 Dubai Land Department (DLD) Mortgage Regulations

1. Who Can Get a Mortgage in Dubai?

✔ UAE Nationals & Residents – Eligible for higher loan amounts & lower interest rates.
✔ Expats & Foreign Investors – Can finance properties in freehold areas.
✔ Salaried & Self-Employed Individuals – Both categories can apply, but self-employed buyers must show 2-3 years of business income proof.

🔗 List of Freehold Areas in Dubai

2. Mortgage Eligibility Criteria

Banks in Dubai evaluate the following factors before approving a mortgage:

✔ Minimum Salary Requirement: AED 10,000 – AED 15,000 per month (varies by bank).
✔ Employment Status: Must be employed for at least 6 months or self-employed for 2+ years.
✔ Credit Score: A good AECB credit score (above 650) increases approval chances.
✔ Debt-to-Income Ratio: Total monthly loan payments must not exceed 50% of your salary.

🔗 Check Your UAE Credit Score

3. How Much Down Payment is Required?

As per UAE Central Bank regulations, the minimum down payment varies based on property value and buyer type:

🔗 UAE Central Bank Mortgage Guidelines

4. Types of Mortgages Available in Dubai

1. Fixed-Rate Mortgage

✔ Interest rate is fixed for 1-5 years.
✔ Protects against market fluctuations.
✔ Rates start from 3.99% per annum.

2. Variable-Rate Mortgage

✔ Interest rate fluctuates based on EIBOR (Emirates Interbank Offered Rate).
✔ Initial rates are lower but may increase later.

3. Islamic Mortgage (Sharia-Compliant)

✔ No interest; follows Murabaha or Ijarah models.
✔ The bank buys the property and sells it to the borrower at a profit.

🔗 Learn More About Islamic Home Loans

5. Best Banks for Mortgages in Dubai

🔗 Compare Mortgage Rates in UAE

6. How to Apply for a Mortgage in Dubai?

Step 1: Get Pre-Approval from the Bank

✔ Pre-approval determines how much you can borrow.
✔ Required documents: passport, salary certificate, bank statements (6 months), credit report.
✔ Pre-approval is valid for 60-90 days.

🔗 Apply for Mortgage Pre-Approval

Step 2: Choose a Property & Pay the Down Payment

✔ Select a freehold property from a developer or seller.
✔ Sign a Sales & Purchase Agreement (SPA).

🔗 Explore Off-Plan Properties

Step 3: Finalize Mortgage & Register the Property

✔ Submit the final loan application & sign the mortgage agreement.
✔ Pay 4% DLD registration fee & 0.25% mortgage registration fee.
✔ Receive the Title Deed from Dubai Land Department (DLD).

🔗 Dubai Property Registration Process

7. Mortgage Costs & Fees in Dubai

✔ DLD Property Registration Fee: 4% of the purchase price.
✔ Mortgage Registration Fee: 0.25% of the loan amount + AED 290 admin fee.
✔ Valuation Fee: AED 2,500 – AED 3,500 (depends on the bank).
✔ Processing Fee: 0.5% – 1% of the loan amount.

🔗 DLD Mortgage Fees

8. Pros & Cons of Getting a Mortgage in Dubai

✔ Pros

✅ Affordable Homeownership – Pay in installments instead of full cash.
✅ High Loan-to-Value (LTV) Ratio – Up to 80% financing for UAE nationals.
✅ Favorable Interest Rates – Competitive rates starting from 3.89%.
✅ Expats Can Invest in Freehold Areas.

❌ Cons

❌ High Down Payments for Expats – Minimum 25%-35% upfront payment.
❌ Variable Interest Rates Can Fluctuate.
❌ Strict Eligibility & Credit Score Requirements.

9. FAQs About Mortgages in Dubai

Can Expats Get a Mortgage in Dubai?

Yes, expats can get a mortgage for freehold properties with a minimum 25% down payment.

🔗 List of Expats’ Mortgage Options

Is There a Maximum Loan Term?

Yes, the maximum repayment period is 25 years, and loans must be repaid before age 70 (salaried) or 75 (self-employed).

Do I Need Insurance for a Mortgage?

Yes, property & life insurance is mandatory for mortgage approval.

🔗 Compare Home Insurance in UAE

10. Why Use GoDubai Portal for Mortgage & Real Estate Investments?

✔ Compare Mortgage Offers from UAE’s Leading Banks.
✔ Access Verified Property Listings & Off-Plan Deals.
✔ Expert Brokers for Hassle-Free Mortgage Approvals.
✔ DLD Market Insights & Legal Support for Expats.

🔗 Subscribe to GoDubai Portal for exclusive mortgage assistance.