Because of the low loan rates and low prices, both local and foreign investors have been eyeing Dubai's broad real estate market. Overseas investors who wish to buy property without straining their finances can also take advantage of non resident home loan Dubai.
If you'd like to learn more about who is qualified for non-resident house loans in Dubai and how such mortgages function, check out our guide below.
IS IT POSSIBLE FOR NON-RESIDENTS IN DUBAI TO OBTAIN A HOME LOAN?
Yes, global investors who want to buy a house in Dubai to add to their real estate portfolio or as a vacation home can acquire a mortgage. As an international investor, you will benefit from a variety of advantages, including larger loan amounts and greater flexibility.
However, it is vital to note that non-resident foreign investors receive fewer property loans than UAE nationals or ex-pats.
WHICH OVERSEAS INVESTORS CAN GET A HOME MORTGAGE IN DUBAI?
Make sure you meet the qualifying requirements before applying for a mortgage loan for non-UAE citizens. Keep in mind that these are broad guidelines that may differ between banks in the UAE:
- Before applying for a non-resident house loan in Dubai, you may need to be a citizen of a nation on the bank's list.
- To apply for a non-resident mortgage, you must be employed or self-employed.
- Some banks also impose age limitations on non-resident mortgage applicants in Dubai. For example, it requires non-resident applicants to be at least 25 years old in order to qualify for a home loan.
- You must also meet the bank's minimum monthly income criteria, which varies depending on whether you are a UAE ex-pat or a non-resident. Furthermore, this minimum income level must be satisfied after tax deductions. Non-residents, for example, must have a monthly income of at least AED 25,000 (post-tax) to qualify for mortgages.
- Some banks also maintain a list of approved property developers and projects for mortgage funding. Before applying for a mortgage, you must ensure that your property is on this approved list.
WHAT DOCUMENTS ARE REQUIRED FOR NON-UAE RESIDENT MORTGAGE LOANS?
Certain documentation must be submitted when applying for mortgage loans for non-UAE citizens. Remember that extra documents may be required depending on the property you're buying as well as the circumstances of the deal. You can consult a non resident loan consultant for this.
Non-resident applicants for home loans in Dubai, on the other hand, will often be required to present the following documents:
- Passport must be valid (as proof of identity)
- Account statements (for the last 3 to 6 months; as proof of funds)
You may be required to provide extra documentation, such as:
- Returns on taxes (if applicable)
- Paystubs or salary certificates (if you are a salaried individual)
- A trade licence and audited financial statements are required (if you are self-employed)
- Information about any existing loans
DUBAI HOME LOAN FEATURES FOR NON-RESIDENTS
When it comes to LTV ratios, maximum loan amounts, and interest rates, there are specific requirements and features of house loans granted to overseas investors acquiring a property in Dubai:
- Maximum Loan Amount: This will vary depending on the bank and your financial situation. For example, Mashreq will finance up to AED 10 million, will finance up to AED 24 million.
- LTV ratios: Under the UAE Mortgage Law, non-UAE citizens must put down at least 20% of the home purchase price (for first-time purchasers) if the property is worth up to AED 5 million. Non-UAE nationals must make a 30% down payment for homes worth more than AED 5 million. However, certain UAE banks will only finance up to 50% of the property's worth for non-resident applicants.
- Interest Rates: Some UAE banks provide various interest rate alternatives, such as fixed-rate mortgages and variable interest rates. However, financing rates will be slightly higher than for ex-pat residents in Dubai.
- Loan Length: While banks may need a shorter loan tenure for non-resident investors, the maximum loan tenure for resident expatriates is 25 years. Furthermore, banks may impose a restriction that the applicant's age did not exceed 65 years (salaried) or 70 years (self-employed) during the loan's lifetime.
CAN You LEAVE THE UNITED ARAB EMIRATES WITH A MORTGAGE LOAN?
It is possible to leave the UAE while still owing money on your mortgage. You must notify your bank, which will almost certainly change the terms and interest rate of your mortgage and convert it to a non-resident mortgage. In some cases, the bank may require you to pay off your mortgage in full before departing the UAE. In such cases, you may choose to sell the home or refinance it with a different lender; however, you may be charged an early settlement fee.
WHAT BANKS IN THE UAE PROVIDE HOME LOANS TO NON-UAE RESIDENTS?
Keep in mind that there are only a few banks in Dubai that offer non-resident mortgages. Mashreq and Dubai Islamic Bank are two banks that provide house loans to non-UAE residents.
However, each bank will have its own set of qualifying requirements that applicants must complete in order to qualify for a mortgage in Dubai for non-residents.
Getting a non resident loan in Dubai can be a very simple process if you match the bank's eligibility conditions. Get a mortgage pre-approval before starting your house search so you know your budget ahead of time, which can make the process easier.
The process of purchasing property varies greatly between countries. To make the process of buying property in Dubai smoother, it's a good idea to familiarise yourself with the legal steps!