How to obtain a mortgage on your commercial property in Dubai

We know that Dubai is the gem everyone’s eyes are on, but for those businesses who took the plunge, have you been figuring out your way through a commercial mortgage?

We know how complex mortgages can be, but in Dubai, almost everything is as simple as the snap of two fingers, including a commercial property mortgage. And we’ve got your pocket friendly guide to obtaining a commercial mortgage in Dubai.

Determine your eligibility:

Before applying for a commercial mortgage, assess your eligibility. Lenders typically consider factors such as your business's financial stability, creditworthiness, industry experience, and the purpose of the loan. Make sure your business meets the lender's criteria before proceeding.

Research lenders:

Explore different banks, financial institutions, and lenders in Dubai that offer commercial mortgages. Compare interest rates, loan terms, fees, and customer reviews to find a lender that suits your business needs.

Gather necessary documentation:

Prepare all the required documents to support your commercial mortgage application. Common documents include:

Business plan: Outline your business's objectives, financial projections, and how you intend to use the loan.

Financial statements: Provide balance sheets, profit and loss statements, and cash flow statements for the past few years.

Bank statements: Present business bank account statements to showcase your cash flow.

Business licences and legal documents: this include trade licences, Memorandum of Association (MOA), and other relevant legal documents.

Property documents: If you already have a property in mind, provide details about the property, including its value and ownership documents.

Assess your loan amount and repayment plan:

Determine the loan amount you need and create a repayment plan that shows how you will repay the mortgage over the loan term. Lenders will want to know that you have a viable plan to generate revenue and service the loan.

Submit the application:

Contact the chosen lender to inquire about their application process. You may apply online or visit the bank's branch in person. Complete the application form and submit all the required documentation. Double-check that you have included everything to avoid delays in the processing of your application.

Underwriting and evaluation:

Once your application is submitted, the lender will review and evaluate your financials, creditworthiness, and the property (if applicable). This process may take several weeks as they assess the risk and viability of approving the commercial mortgage.

Receive the offer:

If your application is approved, you will receive a formal offer from the lender. Review the terms and conditions, interest rates, and loan tenure carefully.

Accept the offer and finalise the mortgage:

If you are satisfied with the offer, accept it by signing the required documents. The lender will then finalise the mortgage and disburse the loan amount. Be prepared to pay any associated fees and expenses during the closing process.

Helpful?

If you found this guide helpful or are looking for your next commercial unit, get in touch with our team of experts.

We have a plethora of commercial units you wouldn’t want to miss out on, from Dubai Commercity, to Expo City, we’ve got you covered - take a look.

Or

Take a look at our podcast on commercial real estate in Dubai and how to get your hands on your commercial unit in Dubai.