How can foreign buyers secure a mortgage in dubai?

Forget the rumours that you need millions in cash just to buy a property in Dubai. That is simply not true. Whether you are dreaming of a modern apartment or a big family villa, the great news is that Dubai welcomes foreign buyers, and yes, you can get a mortgage here even if you do not live in the UAE. Since Dubai’s property laws changed in 2002 to allow foreigners to own freehold property, buyers from around the world have been able to purchase homes and apply for mortgages here. This opened the doors and helped the market grow huge. The process is clear, but because the rules are specific to international buyers, it may initially seem like a big mystery. To obtain a loan, you just need to follow a clear and simple checklist. So, let’s break it down, clear up any confusion, and focus on the facts to guide you through the rules, the exact cash you need, and the easy steps to move from just wishing to owning your Dubai home.

Eligibility Criteria for Foreign Buyers

Dubai banks will lend to overseas investors, but they need clear and reliable proof that you are a low-risk borrower. This is the trickiest part, but it is entirely manageable with preparation.

The Income Requirement

1. Minimum Pay: You need to earn at least AED 10,000 - 15,000 per month, or the equivalent amount in your home currency, to qualify for a loan. This money needs to be deposited into your bank account regularly.
2. Proof of Income: If you work for a company, you need to show that you have been in your job for at least 6 months. If you run your own business, the bank will ask for more proof, usually asking to see two years of business finance reports.
3. The Debt Limit: A strict rule is in place. All your debt payments each month, including this new mortgage, plus your credit cards and any car loans back home, cannot exceed 50% of your total monthly pay. If you earn AED 30,000, your debts can only be AED 15,000 or less.

Eligibility Checks:

The three simple checks can save you a lot of time:

1. Check if Your Nationality Is Eligible: Every UAE bank has a list of approved countries for non-resident mortgages. Ensure your citizenship is listed on the application before submitting it.
2. Confirm the Property’s Eligibility: Some banks limit their financing to properties built by approved property developers or to specific projects. Ensure your chosen home or investment is eligible for a loan from your chosen bank.
3. Age Limits: Applicants must be at least 21 years of age to be eligible. Most banks require that salaried applicants repay their loans by age 65, while self-employed borrowers usually have a cut-off around 70. Older applicants may have shorter loan terms as a result.

Once you know whether you qualify and what documents you need, the next key step is understanding how much cash you need to have on hand.

The Deposit Rules

Your residency status has a major impact on how much you’ll need to pay upfront. If you’re a foreign buyer living in the UAE, you’ll follow the same deposit rules as other expat residents. For your first home or owner-occupied property, most banks allow up to 80% of the property value for homes under AED 5 million, and up to 70% for properties above AED 5 million. Each borrower can claim only one property under this category. For a second or investment property, banks lend up to 60% of the property value, regardless of price.

If you’re a foreign buyer living outside the UAE, the required down payment is higher. Most banks ask for 35% to 40% in cash, as non-residents are considered higher risk. Understanding whether you qualify as a resident or non-resident is key, since it affects your deposit size, loan-to-value ratio, and documentation requirements, helping you plan your mortgage more confidently.

Types of Mortgages for Foreign Buyers

When you secure financing, you will choose one of two main types of mortgages:

Fixed-Rate Mortgage

Your interest rate is locked in with a fixed-rate loan. It stays the same for a set time, usually one to five years. The main benefit is that your monthly payment stays the same throughout the loan term. This consistency makes budgeting easier and gives you peace of mind, knowing exactly how much you’ll pay each month. The only thing is, after that fixed time is over, the rate will change with the market.

Variable Rate Mortgage

A variable-rate mortgage works differently because the interest rate can rise or fall depending on market conditions. As the rate changes, your monthly payments may increase or decrease accordingly. You could save money when rates decrease, but if they increase, your payments will rise as well. It’s suitable for borrowers who are comfortable with some level of risk and can manage occasional changes in their payment amounts.

The Fees Beyond the Deposit

The deposit is your biggest cash payment, but it is not the only one. You must plan for several mandatory government and bank fees that come with the purchase. These additional costs account for 5% to 8% of the property’s total value. You pay these fees in addition to your cash deposit, so be sure to save enough.

Here is a simple look at the major fees you must pay:

Government Fees (Paid to DLD)

These fees are required by the Dubai Land Department to ensure the legality of your purchase.

• DLD Transfer Fee (Main Charge): You pay 4% of the property price, plus a small administrative fee of AED 580. Consider this the primary government fee for officially registering the sale in your name.
• Mortgage Registration Fee (The Loan Charge): Because you use a loan, you must register it. You pay 0.25% of the total loan amount to the DLD, plus an extra AED 290 administration fee.

Bank and Service Fees

These fees cover the bank's processing of your application and the property transfer itself.

• Bank Mortgage Arrangement Fee: The bank will charge a fee for setting up and processing the loan. This fee can be up to 1% of the loan amount.
• Valuation Fee: Before the bank gives you the money, it must check the home’s worth. You must pay an independent surveyor about AED 2,500 to AED 3,500 for this check.
• Trustee Office Fee: The Trustee Office Fee in Dubai is a mandatory charge for property transfers, collected through authorised trustee offices. It costs AED 2,000–4,000 plus 5% VAT. 
  • For properties valued below AED 500,000: The fee is AED 2,000 plus 5% VA with a total of AED 2,100.
  • For properties valued AED 500,000 and above: The fee is AED 4,000 plus 5% VAT, totalling AED 4,200.

The fee covers legal verification, fund handling, official registration with the Dubai Land Department, and issuance of the new title deed.

You need to factor all these fees into your initial budget. They happen at different times during the process, so be ready for each payment.

Finding the Right Partner and Securing Your Visa

When you understand the money rules, the next step is simple, so do not go it alone. 

You need to build a support team to handle the paperwork, and it is smart to work with a mortgage broker. A broker knows which bank is best for your specific nationality and income source. They act as your expert guide through the bank's system, handle the complex paperwork, and communicate with the lenders on your behalf, which makes the whole process faster and much less stressful for you. Several major financial institutions in the UAE offer mortgages for non-residents, including Dubai Islamic Bank, HSBC, First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), and Emirates Islamic Bank. Your broker will help you choose the ideal fit from these and others.

Beyond financing, purchasing property in Dubai offers a huge benefit for international investors as it can lead to UAE residency. This is an added bonus that makes ownership here even more attractive. For example, if you buy property for AED 750,000, you can apply for a 2-year residency visa. If you purchase property for AED 2,000,000, you become eligible for the prestigious 10-year Golden Visa. This feature makes property ownership here not just a financial investment, but a major lifestyle and immigration advantage for you and your family.

Conclusion

Can a foreign buyer obtain a mortgage in Dubai? Yes, absolutely. The whole process is like following a clear map. You need to be completely honest and prepared with your documents, choose a bank that works well for your situation, and prepare the necessary large cash deposit and any applicable fees. If you do your homework, talk to a good expert, and understand the Dubai mortgage rules, you’ll have everything you need to secure the right property with confidence. Dubai’s market is strong and welcoming. Take the time now to get your money ready, make sure you know all the costs, and you will soon be holding the keys to your new home or investment property in one of the world's most exciting cities. 

Wherever you are in the world, owning property in Dubai is within reach. From finding the perfect home to completing the purchase, every step can be simple and straightforward. Contact us today to start your journey toward property ownership in Dubai.