Dubai has witnessed in the last two decades an urban boom, commercial prosperity and development renaissance that made it rise to the rank of international cities and occupy a leading position among the top cities and favorite tourist destinations. In addition to being a destination for many who wish to be part of this thriving center for business and innovation.
This prosperity has prompted many people to visit and settle in Dubai, in addition to investors who found buying apartments in Dubai an opportunity that must be seized. But what if one of these investors or residents of Dubai who want to buy an investment or residential apartments in Dubai does not have the sufficient amount to buy property in Dubai that rises to their aspirations; can they apply for a mortgage loan from a bank or a financing company that provides this type of loans?
This question occurs to many and this article will provide the answer, in addition to the information you need to know about having a mortgage loan as a non-citizen in Dubai.
One of the important things that you must consider before applying for a mortgage loan to buy property in Dubai is to know the loan interest type, in other words, what kind of rate will be applied to it. If you have a mortgage with a fixed rate interest you should know the reverse rate applied after the fixed rate period ends. Depending on the type of loan you take to buy your apartments in Dubai and the interest applied to it, you can calculate the total amount that you will have to repay at the end of the mortgage tenor.
Non-citizens can apply for a mortgage to buy apartments in Dubai if they qualify for the asked criteria. Most banks and finance companies require conditions that can guarantee that the loan borrower is going to be able to repay the mortgage. For that, the bank or the finance company will ask you to provide some documentation to prove your fixed income like a salary certificate addressed to the bank, and your company that issues this certificate should be a registered company with the bank. If you are self-employed you will be required to provide a bank statement that shows your work operations.
It would help you get approval on your application for a loan to buy property in Dubai if you have a longer working period in UAE as banks and financial companies consider your being a resident actively working in the country as a factor that supports your application.
Can expats who are not residents of the United Arab Emirates apply for a mortgage loan?
Investors who are not residents of Dubai and wish to obtain a mortgage loan to finance their investment can apply for a mortgage, but the conditions and criteria that they must follow will differ slightly in order to give the bank or the loan provider some security guarantees to ensure that the loan is going to be repaid.
Banks and financing companies in Dubai offer the opportunity to grant mortgages on ready apartments in Dubai and off-plan properties that are still under construction as well, but the percentage they offer varies according to the property status. While a mortgage would cover 75 percent of financing on ready properties for non-citizens who want to invest in Dubai, the percentage given to finance off-plan apartments in Dubai that are still under construction drops to 50 percent of the total property value. That means that the buyer will have to provide half of the value of the property in order to be able to purchase it with the help of mortgage financing.
As a resident of Dubai or a non-resident investor willing to buy property in Dubai with the aid of a mortgage, you can put yourself in a good position regarding having a mortgage preapproval by studying your financial situation and keeping up with your debts and obligations that you incur regularly without delay. This commitment shows your ability to repay the loan you are applying for, which increases your chance of having approval.
