Navigating Mortgages in Dubai A Guide for Foreign Investors
The emirate of Dubai is widely known for its highly active and attractive real estate market for investors both from within the country and outside the country. Thus, buying a property in the first place is not a problem, and if foreigners need a mortgage – they can easily get it in Dubai according to certain conditions and following certain procedures.
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Eligibility Criteria for Foreigners
Foreigners can indeed secure a mortgage in Dubai, but they need to meet several criteria:
- Minimum Income: Most bank’s standard credit policy demand a minimum income level depending on the type of the project and the bank. For example, ADCB expects at least AED 25,000 per month, post-tax, from non-residents.
- Job Stability: Employment history and contract duration also play an important role because the lenders prefer clients with stable jobs. Applicants should be in a position to prove that he or she owns a business that has been in existence for two years.
- Credit History: A customer has to have a good credit history to qualify for the loan. This involves analyzing of your credit history using bank statements and credit reports from the borrower’s home country.
- Down Payment: It is also crucial for the foreigner to have a down payment more than the UAE nationals with a down payment of 20% to 35% of the property price.
Required Documents
When applying for a mortgage, foreigners need to prepare the following documents:
- A valid passport and residence visa
- Proof of income (salary certificates, employment contracts, bank statements)
- Bank statements for the past 6-12 months
- Property details such as the sale and purchase agreement and title deed.
The Application Process
The mortgage application process for foreigners involves several steps:
- Pre-Approval: Enclose your application accompanied by the following documents. An initial go-through will be done on your credit worthiness and you will be issued a pre-approval letter.
- Property Valuation: The borrower then provides the lender with a date for a valuation to be conducted so that the market value of the property in question is ascertained.
- Offer Acceptance: If the property complies with the lending requirements then the client is issued with an offer containing the conditions for repayment.
- Legal Documentation: When you agree to the terms provided by the lender, he will write the mortgage agreement and other legalities.
- Mortgage Registration: It is through signing a mortgage that legal ownership of property is awarded with the Dubai Land Department.
- Disbursement: The cash is paid out the buyer makes payment for the property to the seller and you receive the proceeds of the loan.
Tips for a Successful Application
- Work with Mortgage Brokers: They can easily guide one through the different lenders and get one the best mortgage deal for you.
- Compare Lenders: Interest and charges differ from one company to another, and as such, you should search multiple companies to identify the best organization to borrow from.
- Prepare Thoroughly: This helps make the application process much easier and possibly increasing the chance of having your application approved.
For this reason, with necessary preparations as per these requirements, the foreigners can easily get a mortgage and be a part of the booming real estate market of Dubai.