All About Documents Required for a Property Loan

Showcasing documents required for a property loan

Buying a property in the UAE requires sufficient upfront capital. Why not apply for a property loan as an expat or a national and seal the deal of your dream property? First, learn about the eligibility criteria and the documents required for a property loan.

Gathering documents firsthand can make the process quick, easy, and time-saving. Scroll down to learn everything about initial documentation for a property loan in the UAE.

Home Loans in the UAE – A Quick Rundown

Cash vs. mortgage is a long debate. On one end, cash transactions are cost-effective, but on the other hand, mortgages are affordable. Also, home financing fulfills the property-buying dreams of expats and nationals in the UAE.

Offered by a financial institution such as a bank for a set interest rate, these loans are of different types. The most common types of mortgages are fixed-rate, variable-rate, and offset mortgages. Buyers can also opt for a pre-approved home loan before purchasing a property.

For each case, the first step is to know about the legal paperwork. The documents required for a property loan in the UAE differ for expats and nationals. Before moving on to it, let’s first have a quick overview of eligibility conditions for home loans.

Calculating mortgage for a property in the UAE

Eligibility Criteria for Home Loans

Both expats and nationals aged 21 to 65 are eligible to apply for a property loan in the UAE, however, conditions differ. For instance, the minimum salary criteria vary for salaried and self-employed individuals.

The eligibility may vary by bank policies, however, here are the general eligibility conditions for a home loan application:

For Nationals

Nationals applying for a home loan can be salaried, self-employed individuals, or co-borrowers. Here are some general eligibility conditions:

  • A minimum monthly income of AED 10,000 per month.
  • A loan-to-value ratio (LTV) of up to 85% of property value.
  • A minimum down payment of 15% is mandatory for properties under AED 5M and 25% for properties above AED 5M.

For Expats

Expat residents or non-residents are also eligible for a property loan in the UAE subject to certain conditions discussed below:

  • Must have a minimum salary of AED 15,000 per month.
  • Financing is applicable for a maximum of 80% of the property value.
  • For properties under AED 5M, expats must pay a down payment of 20%. On the other hand, properties above AED 5M require a 30% down payment.
  • The maximum loan amount can be up to AED 25M or an expat’s 84month income multiples. If income multiples are lower than 25M, the loan value will be the same.
  • Non-residents can only apply for a home loan at limited banks and most institutions offer a loan value of AED 10M. Some of these banks include FAB Bank, Mashreq, and Dubai Islamic Bank.

Documents Required for a Property Loan in the UAE

Before applying for a home loan, it is recommended to arrange all documents to avoid delays in the process. Documents required for a property loan vary by bank policies, but in most cases, the following documents are mandatory:

For Nationals

UAE nationals can easily apply for a property loan, subject to the submission of some essential documents listed below:

discussing about documents required for property loan in Dubai

Salaried Nationals

Nationals working in public or private sector in the UAE need to arrange the following documents:

  • Passport
  • Emirates ID
  • Salary certificate addressed to the subject financial institution
  • Last six months’ bank statements
  • Last six months’ pay slips (If the salary changes are above 10%)

Self-Employed Nationals

Those running their own business must submit additional documents like a trade licence. Here are the mandatory documents in this case:

  • Passport
  • Emirates ID
  • Trade licence copy
  • The last six months’ personal bank statements
  • Memorandum of Association (MOA) document
  • Audit details of the company for the previous two years

For Expats

Expats residing in the UAE and working as salaried or self-employed individuals need the following documents to apply for a home loan:

Salaried Residents

Expats working in the UAE require the below-listed documents for a home loan:

  • Passport
  • Copy of visa
  • Emirates ID
  • Bank statement for the last six months
  • Pay slips for the last six months
  • Salary certificate addressed to the subject financial institution
  • Current residence proof (tenancy contract or utility bills)
  • AECB Report
  • Details and documents proving any personal liabilities (Other loans or credit card)
  • Property purchase documents like MOU and title deed (if the property purchase is completed)
Documents required for a property loan in the UAE

Self-Employed Residents

Expats that have their business registered in the UAE must have the following documents:

  • Passport
  • Copy of visa
  • Emirates ID
  • Bank statements for the last six months (personal and company)
  • Current residence proof (utility bills or tenancy contract)
  • Memorandum of Association (MOA)
  • Trade licence copy
  • Audit report for the last two years’ company financials
  • Additional documents for personal or company liabilities (if applicable)
  • Property purchase documents such as a title deed in Dubai (if the purchase is finalised)

For Non-Residents

Non-residents also wish to invest in the UAE, given that investors with AED 2M worth of properties are eligible for a Golden Visa. Documents vary slightly for non-residents, all details are listed below:

Salaried Non-Residents

As a salaried non-resident, it is necessary to show credibility by providing a loan credit score. Here are the documents required for a property loan:

  • Passport copy
  • ID card from home country
  • Personal details (CV or profile)
  • Bank statements for the last six months
  • Pay slips for the last six months
  • Copy of utility bills and rental agreement
  • Proof of an acceptable loan credit score from the home country
  • Property purchase documents in the UAE (if purchase is completed)

Self-Employed Non-Residents

Self-employed non-residents must arrange the following documents for a property loan in the UAE:

  • All documents as required for salaried non-residents
  • Trade licence copy
  • Memorandum of Association (MOA)
  • Company bank statements for the last 12 months
  • Audited report for the last two years’ company financials
  • Copy of shareholder certificate
  • Certificate of incorporation
planning to buy property in Dubai

Top Banks for Home Loan

Now that you know the documents required and your eligibility, the next step is to apply for a home loan. You can apply for a home loan or consult an independent mortgage advisor on Mortgage Finder. Here are the top banks to apply for a home loan:

  • Emirates NBD
  • ADIB
  • Standard Chartered Bank
  • Mashreq
  • FAB
  • Arab Bank
  • Samba
  • HBSC

Way Forward

Did you know that mortgages for off-plan properties in Dubai and other Emirates are restricted to 50% of the property value? The complete process of a home loan varies for each case.

You must know about interest rates, pre-approved mortgages, and more before getting a mortgage in Dubai and other Emirates. Also, use the Mortgage Calculator to learn how much monthly payments you can afford.

Buying a house in the UAE

FAQs

1. What Documents Are Required for a Property Loan in the UAE?

The documents required for a property loan in the UAE vary by bank policies. Some must-have documents include bank statements, a passport, an ID Card, and an Emirates ID (for UAE nationals and residents).

2. What Is the Minimum Salary for a Home Loan in the UAE?

The minimum salary differs between expats and nationals. Expats must have a minimum monthly income of AED 15,000, whereas nationals of AED 10,000.

Now that you know the documents required for a property loan, you can buy a property without worrying about upfront costs. An elegant lifestyle awaits in the UAE.

Planning to buy a property in Dubai as an expat? You must know about the designated freehold areas in Dubai where expats can buy a property, such as Al Warsan and Business Bay. Additionally, follow this comprehensive guide to applying for a home loan in the UAE as an expat.

Browse the properties for sale in the UAE on Property Finder and filter out your picture-perfect home.

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