How to get a mortgage pre-approval in Dubai?

With Dubai being the city on everyone’s radar, more people are looking to invest here, especially with the phenomenal quality of life, safety and family-friendly city!

So, has a mortgage been looming over your mind?

There are different types of mortgage loans in Dubai, so as buyers you can now choose from the options that suit you and meet your financial needs!

But before any of that, a pre-approval is necessary so you can freely browse and select the houses that meet your financial bracket, and pre-approvals are simple.

Step one - Hiring a mortgage broker

Before studying the different mortgage types and pre-approvals, a crucial step is researching the right mortgage broker for yourself, such as Allsopp & Allsopp Mortgage Brokers for instance.

Once you’ve found the right broker, who you can trust, and someone who’s also listed under the Dubai Land Department’s bracket - a mortgage broker can help you locate the ideal property, negotiate for the best loans and find the right type of mortgage for you.

Step two - Meet your eligibility criteria

During any mortgage negotiation, before the pre-approval or application process, it's important to meet their eligibility criteria or to see what financier/bank appeals to you.

Here are some general guidelines that all banks follow as a rule of thumb:

1. A UAE national or resident
2. Aged between 21 and 65
3. Have a monthly income of AED 15K (salaried) and AED 25k (self-employed)

It's important to note that some banks do have some extra criteria that may need to be met. This usually depends on the nationality of the applicant, and a few other factors such as salary bands, and job status.

The minimum salary for a home loan in Dubai can vary based on the bank. Some banks allow UAE nationals with a monthly income of at least AED 10k to apply for home loans in Dubai, but it is largely subjective to the different banks, and their policies.

For foreign investors, eligibility criteria are different, check out our guide to non-resident mortgages in the UAE to help you out.

Step three - Gather the right documentation for your pre-approval

Before applying for a mortgage in Dubai, we recommend having a set of general documents at hand.

Each bank or financier may have a few extra requirements, but here are the documents you would need as a rule of thumb:

If you are employed by a company:

• A salary certificate to the bank with all the necessary information
• A list of liabilities or loans to your name
• Copy of your passport front/back and your stamped visa copy
• Copy of your Emirates ID
• 6 months bank statements
• Latest payslips (up to six months)
• Proof of employment
• Proof of your current address, you could bring a copy of your DEWA bill or tenancy agreement (these need to be in your name or an NOC will be required from the original owner)

If you’re self-employed:

• A company trade licence copy
• Incorporation documents
• Memorandum of association
• Shareholder’s certificate
• Company profile
• A list of liabilities or loans to your name
• Copy of your passport front/back and your stamped visa copy
• Copy of your Emirates ID
• 6 months bank statements and 12 months company bank statements
• Proof of your current address – a copy of DEWA bills or tenancy agreement these need to be in your name or an NOC will be required from the original owner)

Step four - Find the ideal mortgage type

After you’ve prepared all the documents at hand, it's time to find the ideal mortgage that suits you best!

There are many different types of mortgage loans in Dubai and multiple financing options as well.

The most important factors to consider when choosing a mortgage type are:

• Your way of living
• Your desired type of real estate
• Your required loan amount
• Your maximum affordable cash deposit

Once done with the identification, you could use the help of a mortgage calculator to see if your selected property fits your budget.

Step five - Get a mortgage pre-approval letter

A mortgage pre-approval letter consists of information signed off by your lender stating that you are eligible for a mortgage. This letter also validates that you will be approved for a house loan and states your maximum permissible borrowing limit.

A mortgage pre-approval letter can be given to you in 3-5 business days once it has been applied for at the bank of your choice.

This is the best way to go when applying for a mortgage as it can fast track your mortgage.

Step six - Get house-hunting!

Once you’ve received your pre-approval letter, you can begin house hunting stress-free.

Take a look at some of our live listings for sales and lettings to help you get started.

Need any advice?

If you have any questions or need guidance on your mortgage, get in touch with our Head of Mortgages; Stuart Roe.