All You Need to Know about Home Loans in UAE for Expats

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If you plan to live in the UAE for more than three years, buying a house instead of renting will be much more affordable. If you’re curious about home loans for expats in Dubai, this guide will make it easy for you to begin your search.

Types of Home Loans in the UAE

Home loans come in different types in the UAE, which differ based on the interest rate. You should always keep the rate of interest in mind when looking at a deal. Here are the primary types of home mortgages –

  • Fixed-Rate Mortgage – It is the most basic form of mortgage where you agree to a specific rate of interest before the loan tenure.
  • Discounted Rate Mortgage – In this case, you’ll be given a discount of a specific percentage in the beginning phase of your loan term. You must decide whether this option is suitable based on the amount you’ll have to pay after the discount period.
  • Variable Rate Mortgage – As the name suggests, this option has a changeable interest rate. It will differ based on the market and new regulations that come into play. The increase or decrease can be unpredictable, so you must be financially stable enough to proceed with this type.
  • Capped Rate Mortgage – Though it’s like the Variable Rate Mortgage, the interest rate isn’t fixed. However, you can choose the maximum interest rate before taking the loan.
  • Offset Mortgage – With this option, you’ll get to connect your savings, credit, and loan accounts. So, your total interest amount will be deducted whenever you receive extra money in any of these accounts.
  • Remortgage – In case you need an extra loan when you already have an ongoing one, you could choose this option.

Eligibility Criteria for Home Loan

If you want a mortgage in Dubai for expats, there are some conditions you must meet to apply for a loan. Let’s take a quick look at them –

  • You should be holding your current job for at least six to twelve months.
  • Business owners should be operating for at least two years.
  • Clean credit history is necessary to show you’re trustworthy. In case you don’t have a credit card, you should get one immediately and start using it. Remember to pay your dues every month before the due date to maintain a clean credit history.

Steps to Apply for a Home Loan

It’s pretty simple to apply for home loans in UAE for expats. Here are the steps you must follow –

  • Choose whether to directly deal with a bank or go through a broker.
  • Go through the different mortgage options and choose one that suits you the best.
  • Prepare a mortgage agreement or letter as proof of acceptance.
  • Look for the property you want to purchase and strike the best deal.
  • Once the price is settled, pay the deposit for confirming the purchase along with the completion date.
  • The lender or bank will pay the rest of the amount until completion.

If you’re new to home loans and don’t know how to proceed, it is best to speak to a home loan or mortgage consultant to guide you through the proc

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