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Buying a home in Dubai, whether to live in or as an investment, is a major milestone—and for many, that means applying for a mortgage. If you’re new to the process, it can seem a bit daunting, especially with the differences between how it works for residents and non-residents. So, before you jump in, here are five key things worth knowing.
1. Mortgage rules differ for residents and non-residents
The UAE offers mortgage options for both residents and non-residents, but the terms are not the same.
If you are a UAE resident with a valid Emirates ID and residency visa, banks typically finance up to 75 to 80 percent of the property value for a first home, subject to eligibility. Lenders usually require proof of income, recent bank statements, and a credit report from the Al Etihad Credit Bureau. While requirements vary, a minimum monthly salary of around AED 15,000 is commonly expected for salaried applicants.
For non-residents, financing is more conservative. Most banks offer 50 to 60 percent loan-to-value, depending on the buyer’s profile. Applicants are generally required to submit overseas bank statements, proof of income, and a credit report from their home country. Down payment requirements are higher, and documentation is more extensive.
2. The type of mortgage you choose matters
Dubai offers several mortgage structures, and the right option depends on your financial comfort and long-term plans.
- Fixed-rate mortgages offer predictable monthly payments for a set period, usually between one and five years. These are popular with buyers who want stability.
- Variable-rate mortgages are linked to the Emirates Interbank Offered Rate (EIBOR). Payments may increase or decrease over time, depending on market conditions.
- Islamic home finance follows Sharia principles and uses profit-based structures such as Ijara or Murabaha instead of interest.
- Green mortgages are becoming more common and may offer preferential rates for energy-efficient properties, depending on the bank.
Choosing the right structure is about balancing flexibility, affordability, and risk.
3. Pre-approval makes the buying process smoother
Mortgage pre-approval is strongly recommended before you start viewing properties seriously. This is a formal assessment from a bank confirming how much you may be eligible to borrow, subject to final property approval.
Pre-approval helps you:
- Focus on properties within your realistic budget
- Strengthen your position when negotiating with sellers
- Reduce delays once you have selected a property
Pre-approvals are typically valid for 60 to 90 days. For non-residents, this step is especially important, as some banks require notarised or attested documents.
4. Not all banks offer the same mortgage terms
Mortgage offers in Dubai can vary significantly between banks.
For residents, lenders such as Emirates NBD, ADCB, and First Abu Dhabi Bank often provide competitive options. For non-residents, banks like HSBC, Dubai Islamic Bank, Abu Dhabi Islamic Bank, and Standard Chartered are known to work with international buyers, though criteria differ.
Loan-to-value limits, interest rates, processing fees, and approval timelines can vary widely. Mortgage brokers can help compare options and guide you through the paperwork. In most cases, brokers are paid by the bank rather than the buyer.
5. You need to budget beyond the down payment
Many buyers focus on the down payment but overlook additional costs involved in a mortgage transaction.
Common costs include:
- Dubai Land Department (DLD) fee: 4 percent of the purchase price
- Mortgage registration fee: 0.25 percent of the loan amount
- Bank valuation and processing fees: typically between AED 2,500 and AED 5,000
- Life and property insurance: required by all lenders
For off-plan properties, banks often finance a lower percentage during construction. This means buyers should be prepared for higher upfront payments, particularly when investing in newly launched developments.
You may find it helpful to read our guide on Things to Know Before Buying a Property in Dubai.
Final thoughts
Getting a mortgage in Dubai is achievable for both residents and overseas investors, but preparation is essential. Understanding eligibility rules, mortgage structures, and associated costs can help you make informed decisions and avoid surprises.
With proper planning and professional guidance, a mortgage can be a practical way to enter Dubai’s property market with confidence.
