10 Things Every Buyer Should Know Before Applying for a Non Resident Mortgage in Dubai
If you live outside the UAE and want to buy property in Dubai, you need to know how a non resident mortgage works and what problems and chances you might face.
The real estate market in Dubai is booming, and non-residents are a big part of it. In 2024, they made up 35–40% of mortgage bookings in the UAE. Before starting the journey, every buyer should know this.
1. Non-Residents Are a Big Part of the Market
One of the most surprising trends is how much foreign money is going into UAE mortgages right now. A lot of people who don’t live in Dubai apply for mortgages, which shows that the non-resident mortgage market is still very much alive.
When you apply for a non-resident mortgage loan in Dubai, you’re not doing something strange. You’re part of a growing group of investors.
2. Down Payment Requirements Are Higher
Non-residents usually have to put down more money up front than residents do. For non-residents, a lot of lenders want a down payment of 25–40% of the property’s value.
Mada Properties says that if you buy your first home for less than AED 5 million, the LTV (loan-to-value) is usually 60–70%, which means you have more equity. That’s a lot of money to spend, so you should think about it carefully before you do it.
3. Loan-to-Value (LTV) Is More Conservative
If you want a non-resident mortgage, don’t expect the same LTVs that residents sometimes get. Most of the time, lenders set the maximum LTV for non-residents at 60–70%. However this can vary by bank and your profile.
The maximum LTV may go down even more for properties worth more than AED 5 million. This means you need more money up front, and you should do the math to make sure the mortgage will work for you.
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4. Interest Rates Can Be Higher
When you get a non-resident mortgage loan in Dubai, the interest rates are usually not as good as they are for locals or expats who live in the UAE.
Rates for non-residents can start at about 4.99% and go up to 6.49%, depending on the bank, the size of the loan, and how risky you are. These rates show that banks take on more risk when they lend to borrowers who live outside the US.
5. Maximum Tenure Is Generally Limited
There are some limits on mortgage terms for people who don’t live in the country. Based on what Money Maestro says, a lot of lenders only let borrowers pay back their loans for 25 years, and the loan term usually ends when the borrower turns 65.
You should include that in your calculations of how much you can afford. Your monthly payments may be higher than they would be if you were eligible for a longer term.
6. Documentation Is More Stringent
Getting a mortgage as a non-resident means filling out more forms. Most of the time, banks want to see proof of income (like pay stubs, an employment contract, or tax returns), bank statements from your home country, and sometimes global net worth statements.
People who are self-employed usually have to share their company’s financial reports. If you need to translate documents and check them, this can slow things down, so make sure you have enough time.
7. Currency Risk Matters
If you earn money in a different currency but pay your debt in UAE Dirhams (AED), changes in the value of that currency can make it hard for you to pay your bills.
When making a budget, you need to think about this risk. That’s because a lot of people who don’t live in the country apply. If the value of the dollar goes down, your monthly payment could go up.
What does your bank or broker do to figure out your foreign currency income? Do they take steps to protect you from risk?
8. Extra Costs Beyond the Mortgage
There are more costs than just the mortgage when you buy in Dubai. For people who don’t live in Dubai, this usually includes the Dubai Land Department (DLD) fee (about 4% of the property’s value), valuation fees, agency fees (usually about 2%), and sometimes costs to register a mortgage.
Some lenders may also require you to have life insurance or property insurance. These extra costs can make the amount of cash you need up front much higher.
9. Pre-approval Is Essential
It’s a good idea to get pre-approved for a mortgage before you start looking for a home. This will help you figure out how much you can borrow, how much you need for a down payment, and what your interest rate will probably be.
When you apply for a loan as a non-resident, lenders use pre-approval to check your income, credit score, and ability to pay back the loan. This helps you set clearer financial limits when choosing a property. When you negotiate with sellers or developers, having pre-approval also makes your offer stronger.
10. Expert Help Can Make or Break the Process
Because a non-resident mortgage is so complex, it’s helpful to work with a mortgage broker who knows about the ins and outs of the process. These professionals can help you understand the rules of different banks. They will get the best rates, and put together your paperwork.
Because a lot of non-resident lending happens (35–40% of mortgage bookings, according to recent reports), there are brokers who focus on this area. Following their advice can help you save time, money, and avoid making mistakes that cost you a lot of money.
FAQs
What does it mean to have a non-resident mortgage in Dubai?
A non-resident mortgage is a home loan from a bank in the UAE for people who don’t live in the UAE but want to buy a home there. These mortgages usually have stricter requirements than resident loans, such as higher down payments and lower loan-to-value (LTV) ratios.
Can someone who doesn’t live in Dubai buy a house there with a mortgage?
Not everyone who is not a resident is eligible. Lenders look at a number of things. These include your income, credit history, and where you live. Also, not all banks will give mortgages to people who don’t live in the country, and the terms differ from bank to bank.
How much money do you need to put down for a mortgage if you don’t live there?
As a general rule, non-residents must put down 25% to 40% of the property’s value. The bank, the value of the property, and whether it’s a first or second purchase all affect the amount.
What are the average interest rates for mortgage loans for people who don’t live in Dubai?
The interest rates for non-resident borrowers usually start at about 4.99% and can go as high as 6.49%, depending on the lender and the borrower’s profile.
How long do I have to pay back a mortgage for a non-resident?
Most non-resident mortgages in Dubai can only last for 25 years, and the loan term is often limited by the borrower’s age (for example, they must be 65 years old or younger at payoff).
What papers do I need to get a mortgage as a non-resident?
You may need to show proof of income (like pay stubs or tax returns), bank statements from your home country, credit reports, employment contracts, and maybe proof of global assets. If you work for yourself, you need to have your company’s financials.
Does the risk of currency affect mortgages for people who don’t live in the country?
Yes. If you get paid in a foreign currency but pay back in AED, changes in the value of that currency can affect your payments. It’s important to think about different situations and maybe hedge your risk or pick a bank that takes currency into account when it makes loans.
What other costs should people who don’t live in the area expect besides the mortgage?
Dubai Land Department (DLD) transfer fees (about 4%), valuation fees, broker or agent commissions, mortgage registration, and insurance costs are some of the extra costs.
Is it necessary to get pre-approved for a mortgage if you don’t live there?
Of course. Pre-approval lets you know how much you can borrow, how much you need for a down payment, and helps you make better offers on properties. It also makes the last mortgage application easier.
Should I hire a mortgage broker to help me get a mortgage if I don’t live there?
Yes, it can be very helpful to work with a broker who knows a lot about non-resident mortgages in Dubai. They can help you understand the rules of different banks, get better terms, and help you fill out the paperwork.
Conclusion
Do you want to buy property in Dubai? A non-resident mortgage may be the best way to do it. It’s not as easy as getting a house if you live in the UAE, though.
Buyers who are not from the country need to be very ready because the LTV limits are lower. The down payments are also higher. There is more paperwork, and there are extra costs.
However, the chance is very real because a lot of mortgage work in Dubai is currently done by people who don’t live there. This is especially true if you get the right help, are pre-approved, and plan your finances well.
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