The Ultimate Non-Resident’s Guide to Getting Mortgage in UAE

January 21, 2022 By: Webmaster0 comments

Many non-residents from across the globe buy apartments and luxury villas in the UAE every year. From lifestyle investments to tax-free rental yields, there are numerous reasons why non-residents are interested in buying properties in the UAE.

Though there have been a few ups and downs, thereal estate market in the UAE has been by far the most transparent and regulated you can find in the region. In addition, the recent changes to UAE laws and regulations have made real estate investment opportunities an even more attractive prospect. If you are thinking of buying a property in the UAE, this guide is here to inform you about the basics of Dubai mortgage for non-residents. Keep reading!

Will Non-Residents Get a Mortgage in the UAE?

Non-UAE residents will be eligible for a mortgage from lenders to buy property, but few restrictions are in place. According to the AUE Mortgage Cap law, non-UAE nationals must offer at least a 25% down payment of the property value in cash and other associated purchase costs. It eventually will increase to 35% with additional expenses for properties valued at AED 5 million and above.

When buying a second or third property, typically for investment, the down payment would be at least 40% of the property value. If you’re keen on buying a property, contact a broker for the best mortgage rates in UAE.

Features of Mortgage for Non-Residents

Some of the features of mortgages you’ll come across as non-residents are discussed below –

• Mortgage Amount – The exact amount eligible will depend on income, where some banks offer up to AED 20 million to buyers of residential properties.
• Tenure – The timeframe of mortgages goes up to 25 years, until 65 years.
• Interest Rates – Interest rates will vary depending on the bank you approach for a mortgage. Typically, you can expect the rate to range between 4.5% and 6.5% per annum.
• Loan to Value Ratio – Unlike mortgages usually given to residents, most banks will offer somewhere between 50% and 75% funding to a non-resident for buying property in the UAE.

Properties Available in the UAE for Purchase to non-Residents

According to the Dubai Law, a foreign national not currently residing in the UAE will be allowed to buy –

• A leasehold property
• A freehold property in the 23 freehold areas, including Palm Jebel Ali, Palm Jumeirah, Dubai Marina, Sheikh Zayed Road, Jebel Ali, Emirates Hills, and Al Barsha South.

People who aren’t residents of the UAE, Qatar, Bahrain, Oman, Kuwait, and Kingdom of Saudi Arabia, will be eligible of buying freehold and leasehold properties in dedicated investment zones in Abu Dhabi, including Reem Island, Raha Beach, Yas Island, El Reef Village, Saadiyat Island, etc.

Non-residents can purchase leasehold and freehold properties in Ajman, Umm al Quwain, and Ras Al Khaimah of the Northern Emirates, but most properties are available for leasehold.

Closing Thoughts

Buying a new home is not a straightforward task, and it gets more complicated when the property isn’t in your home country. However, if you have the best mortgage broker Dubai by your side, the process gets much easier to understand and manage.

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