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Dubai mortgage for non residents

Updated: Sep 12, 2023

Dubai's thriving real estate market has long been a magnet for investors and expatriates seeking to own property in this vibrant metropolis. If you're a foreigner dreaming of owning a piece of Dubai's skyline, understanding the eligibility criteria for non-resident mortgages is crucial. In this article, we will delve into the requirements and considerations that you need to know to secure a mortgage in Dubai as a non-resident.


Eligibility Requirements


Nationality and Approved List: To be eligible for a mortgage as a non-resident in Dubai, you must hail from one of the countries approved by the lending bank. Banks in Dubai typically maintain a list of approved nationalities, and applicants must belong to one of these countries to qualify for a mortgage.


Employment Status: Whether you are employed or self-employed, having a stable source of income is a fundamental requirement for mortgage eligibility. Lenders seek confidence in your ability to fulfill your mortgage responsibilities.


Age Requirement: To apply for a non-resident mortgage in Dubai, you must be at least 25 years old. This age requirement ensures that borrowers have a certain level of financial maturity and stability.


Minimum Monthly Income: Lenders often stipulate a minimum monthly income threshold for non-resident mortgage applicants. In Dubai, this threshold is typically set at 25,000 AED (United Arab Emirates Dirhams) per month. This criterion ensures that borrowers have the financial capacity to service their mortgage payments.


Additional Considerations


Loan-to-Value (LTV) Ratio: Non-resident mortgage applicants should be aware that banks in Dubai may finance only a portion of the property's value. It's common for banks to grant mortgages with an LTV ratio of up to 50% for non-residents. This means that you may need to provide a substantial down payment to cover the remaining cost of the property.


Loan Tenure: The duration of the mortgage can vary based on your financial profile as a non-resident investor. Banks may offer shorter loan tenures compared to what they offer to residents. The specific loan tenure will depend on factors such as your income, employment stability, and the bank's policies.


Interest Rates: Interest rates for non-resident mortgages in Dubai can be higher than those for residents. Banks may consider non-resident mortgages as higher-risk loans, and therefore, the interest rates may be adjusted accordingly. It's essential to carefully compare and negotiate interest rates with different lenders to secure the most favorable terms.


Documentation: Non-resident mortgage applicants should be prepared to provide extensive documentation, including proof of income, employment contracts, and bank statements. The exact requirements may vary from bank to bank, so it's advisable to contact potential lenders in advance to understand their specific documentation needs.


Conclusion


Owning property in Dubai as a non-resident is a rewarding investment opportunity, but navigating the mortgage eligibility process can be complex. Understanding the requirements outlined by banks in Dubai is the first step toward realizing your real estate ambitions in this dynamic city. By meeting the eligibility criteria, providing necessary documentation, and comparing offers from different lenders, you can enhance your chances of securing a non-resident mortgage that aligns with your financial goals and dreams of property ownership in Dubai.


Get help from a unbiased consultancy like Dunescape Consulting.


Dunescape Consulting offers comprehensive assistance to individuals and corporations, providing them with impartial property investment strategies, streamlined residence application services, and efficient on/offshore company registration solutions. Our clientele consists of esteemed high net worth investors, visionary entrepreneurs, and successful business owners who prioritize absolute financial flexibility and unparalleled business autonomy.


👉Speak to a Consultant We are committed to delivering swift and seamless processes tailored to your specific needs, ensuring an unparalleled experience. Our primary objective is to make your journey as effortless as possible, so that the most demanding task you encounter is simply signing a few documents. At Dunescape Consulting, we are unwavering in our dedication to providing exclusive Premium VIP services to each and every client we serve.

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