Non-resident mortgages in the UAE: How to assess your eligibility

If you’ve been eyeing Dubai’s fabulous developments as your next investment, you might be thinking about a mortgage.

As the market is currently standing up high in 2024, it's turning into a foreign real estate investor's paradise. In Q1 2024, our reports indicated that financing shot up against cash purchases, standing at a high of 53% of all sales! Yes, we’re being serious.

So as a foreign investor, before you get into mortgages, it's crucial to know if you are eligible for a home loan in Dubai and right after what type of mortgage suits you.

At Allsopp & Allsopp Mortgage Brokers, we often get asked what are the stances for eligibility for home loans in Dubai - here’s everything you need to know:

What are the eligibility criteria for foreign real estate investors in Dubai?

Banks in the UAE have a given list of countries whose citizens can apply for a non-resident or foreign real estate mortgage. Each bank may have a different list of eligible countries, so make sure you check your eligibility.

What banks can you apply to for a mortgage?

Banks that offer home loans for foreign investors include:

1. Dubai Islamic Bank
2. HSBC
3. Abu Dhabi Islamic Bank
4. First Abu Dhabi Bank
5. Emirates Islamic Bank
6. Ajman Bank
7. Standard Chartered
8. Abu Dhabi Commercial Bank

What do you need for your application?

Once you decide to get a foreign investor mortgage, you have to gather a few things to apply, these are:

Proof of income or employment

For an application, you need to be salaried or self-employed, and banks require you to show them a set of documents such as a salary certificate, company trade license, bank statements and more depending on the type of home loan and applicant.

Down payment

In Dubai, banks usually finance up to 50%-60% of the property value for foreign real estate investors, which means you'll need to provide a down payment of around 20% of the property value from your own funds.

You need to show proof of having that down payment amount in your bank account.

Debt-to-income ratio

Banks consider your debt-to-income ratio, which is the percentage of your monthly income that goes towards paying off debts.

Generally, a lower ratio is preferred, as it indicates a higher ability to handle additional loan repayments.

Credit history

Your credit history and credit score play a significant role in loan approval.

A good credit score increases your chances of getting a home loan at favourable interest rates. Banks will evaluate your creditworthiness by assessing your credit report, bank statements and payment history.

Age restrictions

While globally many banks accept applicants over the age of 21, in Dubai, foreign real estate investors usually have to be over the age of 25 to apply for a mortgage, but this can differ based on the bank too.

The different types of loans and requirements

Describe the type of home loan you’d like to opt for, we recommend studying the different types of home loans in Dubai and identifying what suits you best. But it's important that you meet the bank’s minimum monthly income after tax deductions which differs between UAE expats and non-residents.

Lastly, banks have an approved list of details of different kinds of projects or developers to provide the mortgage in Dubai for non-residents - so if you are buying off-plan you could check there for the best payment plans available to you.

If you tick all these boxes, you could be eligible under most banks and financial institutions in the UAE, to apply for a home loan.

Get in touch with our Head of Mortgages; Stuart Roe for any queries, doubts or clarifications.

And if you’re keen to know more about how much your mortgage could round you up monthly - take a look at our mortgage calculator.