Mortgage & Home Loan

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UAE Mortgage & Home Loans: Everything you need to know


For those who are looking forward to invest or buy property in the UAE, mortgages are readily made available. However, even before getting started with the application process, it is necessary to understand the different mortgages that are being made available and how you should apply one.

Mortgages in the UAE

For your own convenience and comfort, it is necessary to understand how the concept of mortgage works.

  • Long Term Rate: Base Rate + EIBOR
    The Base rate varies from one bank to another. Moreover, EIBOR is standard across most of the banks and published by the Central Bank of the UAE
  • Short Term Rate: Some of the banks in the UAE do offer fixed rates in the short term period, which generally spans around 1 to 3 years
    Given the options presented, customers should primarily focus on the long term rate. The lower the base rate, the better mortgage offers they get to avail.

What are the documents required to get a mortgage?


As far as applying for a mortgage in the UAE is concerned, there are certain documents you are required to provide.

For Salaried Individuals

  • Application form, consent letter along with authorization letter for bureau check
  • National ID or valid passport, residence visa, and Emirates ID
  • Original bank statements for the last 3 months for new customers
  • Salary certificate

For Self- Employed

  • Application form, authorization letter for lending and consent letter for bureau check
  • Copy of Trade License, Chamber of Commerce Registration, Memorandum & Articles of Association
  • Original 12 months company/organization and personal bank statements for new customers

For Expats

  • A copy of your passport
  • Proof of residence in the UAE and proof of your current address
  • Financial documents such as proof of salary, bank statements and tax returns
  • Documents to prove that you can afford the mortgage

UAE mortgage eligibility criteria

Some minimum requirements must be fulfilled, when it comes to applying for a mortgage in the UAE. These are:

  • Minimum monthly income should be in the range of AED 8,000 to AED 15,000
  • Monthly Installment ( EMI) shouldn’t exceed 50% of the monthly income( including Credit Cards, car loans, and other persona loan installments)
  • The maximum/ finance loan period is 25 years ( subject to customer age)
  • Minimum age to apply for a mortgage is 21 years and maximum age is 65 years for expats. For Emiratis, the upper age limit is 70 years.
  • Having a clean credit history is a must as per UAE Etihad credit bureau
  • Maximum LTV ( Loan to Value)
    Property Value < AED 5 million
    • 80% for the first mortgage
    • 65% for the second mortgage onwards
  • Property Value >AED 5 million
    • 70% for the first mortgage
    • 65% for the second mortgage and onwards
  • Non- residents of the UAE are eligible for a maximum LTV of 50%
  • Some of the banks do finance off-plan projects after 50% of construction progress and up to 50% LTV only
  • Joint Applications are allowed to improve Loan Eligibility (couples, siblings, business partners)

Some additional points to remember

  • Pre-approval of a mortgage is valid between 30 to 90 days and is very much dependent on the type of bank.
  • As far as property valuation cost is concerned, it usually falls in between AED 2, 500 to AED 3,000, which again depends on the bank.
  • Refrain from quoting an inflated property purchase price in order to avail a higher LTV ratio, as it considered unethical and illegal. This could also result in a major loss in case the property valuation is lower and it is strongly advised to avoid these methods at all costs.
  • Even before searching for a property, it would make a lot of difference to do the pre-approval, as it makes a huge difference when you are negotiating for better terms with the seller.
  • Other additional fees that you are required to pay include the likes of the loan processing fee, valuation fee, and property insurance.

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