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
- Eligibility Criteria for Home Loans
- Documents Required for a Property Loan in the UAE
- Top Banks for Home Loan
- Way Forward
- FAQs
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.
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 84–month 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:
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)
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
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.
FAQs
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).
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.
