How to buy real estate in the UAE with a mortgage

The United Arab Emirates is a country that attracts expats with its luxury, stability, and incredible prospects. Buying real estate here is a profitable investment decision that provides a stable income. And if earlier the purchase of housing was associated exclusively with large one-time investments, today mortgages open up access to the UAE real estate market for a wide range of potential buyers.

The advantages of purchasing real estate with a mortgage are obvious:

The ability to purchase the desired property without having the entire amount available at once.

This significantly expands the circle of potential buyers, allowing them to plan their lives and investments more flexibly.
Investments in the country's real estate are considered highly profitable.

A mortgage allows you to start profiting from renting or reselling even before the loan is fully repaid.
Flexible programs

Local banks offer various mortgage programs with favorable terms tailored to the needs of borrowers.

The mortgage lending market offers a wide range of products to meet different needs and financial capabilities.

Let's look at the main types of mortgages:

Fixed rate - a classic option that guarantees predictable payments throughout the term of the loan. You know exactly how much you will pay each month, which provides financial peace of mind. However, the fixed rate may be slightly higher than the variable rate at the initial stage.

Variable rate - attractive due to low initial interest rates, which significantly reduce monthly payments in the early years. However, the rate may change depending on market conditions, so there is a risk of increased payments in the future. It is important to carefully study the terms of the agreement and assess the potential risks.

Sharia-compliant mortgage (Islamic financing). Programs developed in accordance with the principles of Islamic banking are available to Muslim buyers. These programs exclude interest charges, based on the principles of joint investment or lease with the right to purchase. The terms of such programs may differ from traditional mortgage products.

Off-plan projects. This option is attractive for those who are willing to wait for construction to be completed. You purchase a property at the design or construction stage, often at a lower price than on the finished market. However, you need to consider the risks associated with construction delays or potential project changes.

Debt relief. Some banks may offer programs with partial or full relief from the remaining debt, subject to certain conditions. This is a fairly rare but very attractive option.

Factors affecting loan approval:

Income is a key indicator. Banks usually require a proven stable monthly income of at least 15,000 dirhams. The higher it is, the more you can count on. It is important to provide complete and accurate information about your sources of income, including references from your place of work, bank statements, and other supporting documents.
A good credit history significantly increases your chances of approval and more favorable loan terms. Any late payments on previous loans may negatively affect your application.
Property value. The loan amount is limited to the appraised value of the property being purchased. Banks usually provide loans ranging from 70% to 80% of the property value. The more expensive the property, the larger the down payment will be.
Having a UAE resident visa is a significant advantage when applying. It confirms your intention to live in the country and increases your credibility in the eyes of the bank. However, some banks offer programs for those who are only planning to move.
Age. Most banks set age restrictions for borrowers, ranging from 21 to 65 years old.

How to increase the chances of approval:

Gather a complete set of documents confirming your income, credit history, and other important information.
Compare offers from different banks. They offer their own terms and conditions: choose the option that best suits your current situation.

Consult with a specialist. Contact a mortgage broker or financial advisor. A specialist will help you understand the nuances and choose the best program.

Thus, the mortgage application process includes the following steps:

Reviewing bank offers and choosing the most suitable solution.

Prepare and submit an application to the selected bank, including the necessary documents.

Have the property appraised by an independent expert.

Review the application and make a decision on whether to grant the loan.

Legal formalities: conclude a mortgage agreement and register the transaction.

Buying real estate in the UAE with a mortgage is an excellent opportunity to invest in a promising market and secure comfortable housing for yourself. Carefully studying the requirements of banks, preparing the necessary documents, and consulting with a specialist will help you successfully complete the process.