How to Get a Mortgage in Dubai: A Step-by-Step Guide for Expats & Residents

Securing a mortgage is a crucial step toward owning property in Dubai, especially if you’re an expat or first-time buyer. Yet, navigating the local banking system, regulations, and terminology can seem daunting. In this blog, we’ll break down everything you need to know—covering eligibility, documentation, interest rates, and hidden costs—so you can confidently move forward with your property purchase.

Who Can Get a Mortgage in Dubai?

Dubai’s real estate market is open to both UAE nationals and expatriates, but each group may face slightly different requirements:

UAE Nationals: Often enjoy higher loan-to-value (LTV) ratios and potentially lower interest rates.
Expats: Can still secure mortgages up to 80% (for properties under AED 5 million) or 75% (for properties above AED 5 million), subject to Central Bank regulations.

Understanding Loan-to-Value (LTV) Ratios

The LTV ratio represents how much of the property’s value the bank is willing to finance. Key points include:

First-Time Buyers: Up to 80% LTV for properties under AED 5M (expats), 85% for UAE nationals.
Second or Subsequent Property: LTV typically decreases to around 60–70%.
Off-Plan Purchases: Some banks offer mortgage options for properties still under construction, but LTV ratios may be stricter.

Types of Mortgage Rates

Dubai banks typically offer two main categories of interest rates:

Fixed-Rate Mortgages
Pros: Stable monthly payments for a set period (usually 1–5 years), making budgeting easier.
Cons: Interest rates can be slightly higher compared to initial variable rates.
Variable/Adjustable-Rate Mortgages
Pros: Initial rates may be lower; can benefit if market rates drop.
Cons: Payments fluctuate with market changes, which can make it harder to predict long-term costs.

Tip: Some banks offer a hybrid mortgage—fixed rate for the first few years, followed by a variable rate. Always compare multiple offers to find the best fit for your financial strategy.

Eligibility Criteria & Required Documents

While specific requirements vary among banks, most lenders in Dubai request the following:

Proof of Income
Salary certificate (for employed individuals) or audited financial statements (for self-employed).
Recent payslips or bank statements (typically 3–6 months).
Credit History
A good credit score is essential; any unpaid loans, overdue credit card bills, or excessive debt could impact your application.
Valid Residency Status
For expats: A valid residency visa and Emirates ID.
For non-residents: Some banks now offer specialized mortgages, but expect more stringent terms.
Property Valuation
Lenders require an official valuation to confirm the property’s market worth, ensuring the loan amount remains within permissible LTV limits.

The Mortgage Application Process

Step 1: Research Lenders & Mortgage Products

Compare interest rates, fees, and terms from multiple banks or mortgage brokers.
Look for promotional offers, such as zero processing fees or discounted valuations.

Step 2: Get Pre-Approval

Submit essential documents (passport, visa, salary certificates, etc.).
Pre-approval confirms the maximum amount you can borrow, providing a solid budget for property hunting.

Step 3: Find Your Property

Work with a reputable brokerage like Blissful Homes to narrow down listings that suit your preferences.
Once you select a property, make an offer and sign the Memorandum of Understanding (MOU) or Sales Agreement.

Step 4: Finalize Mortgage Details

The bank conducts a property valuation and final review of your paperwork.
You’ll receive an official mortgage offer outlining the interest rate, tenure, and repayment plan.

Step 5: Transfer & Registration

After all documents are cleared, meet at the Dubai Land Department or relevant trustee office to transfer ownership.
Pay the down payment, transfer fees, and any additional costs (outlined below)

Hidden Fees & Additional Costs

Don’t forget to factor in extra expenses beyond the property price

Down Payment

20%–25% (expats) or 15% (nationals) of the property value for the first home under AED 5M.

Mortgage Arrangement Fees

Can range from 0.5%–1% of the loan amount; some banks have a fixed fee.

Valuation Fee

Typically around AED 2,500–3,500 depending on the bank.

Dubai Land Department (DLD) Fees

4% of the property value for registration, plus a minor admin fee.

Brokerage Commission

Usually 2% of the property price, paid to the real estate agency.

Service Charges & Maintenance Fees

Annual fees (varies by community) for building upkeep, amenities, and common areas.

Tips for a Smooth Mortgage Experience

Maintain a Good Credit Score: Pay off credit cards and avoid multiple large loans before applying.
Compare Offers Thoroughly: Even a small difference in interest rate can significantly impact your total cost over 15–25 years.
Check Early Settlement Terms: Some banks charge penalties for paying off your mortgage early; clarify these terms upfront.
Use Professional Help: A dedicated mortgage broker or real estate consultant can streamline the process, saving you time and money.

How Blissful Homes Can Help

Navigating the mortgage landscape in Dubai can feel overwhelming, especially if you’re unfamiliar with local regulations. At Blissful Homes, we offer:

Expert Mortgage Guidance: Our team works closely with trusted banks and brokers, ensuring you access competitive rates and transparent terms.
Personalized Property Selection: Whether you’re looking for a family home, an investment property, or a holiday residence, we help match you with the right neighborhood and developer.
End-to-End Support: From pre-approval to final handover, we handle each step so you can focus on your upcoming move.

Conclusion

Getting a mortgage in Dubai is a straightforward but detail-oriented process. Understanding eligibility criteria, LTV ratios, types of interest rates, and the application procedure ensures you’re well-prepared to secure the best financing deal. With the right planning and professional guidance—like the support offered by Blissful Homes—you can confidently step into Dubai’s thriving real estate market, turning your property dreams into reality.

Ready to Make Your Move?

For personalized advice on off-plan or secondary investments, reach out to Blissful Homes:

WhatsApp: +971 58 506 2514
Email: info@blissfulhomesrealestate.com

At Blissful Homes, we’re committed to turning your Dubai real estate aspirations into reality.