In the UAE's thriving real estate market, a diverse range of housing options are available across all emirates, from various types of apartments to luxurious villas. Recently, off-plan properties have gained significant popularity among the country's residents. Home and mortgage loans are widely sought after by those looking to invest in property. Notably, expatriates in the UAE are also eligible for mortgage loans, provided they meet specific criteria. This guide outlines the steps expats can take to secure mortgage loans in the UAE, from minimum salary requirements to repayment schedules.

Types of Mortgages

Fixed-rate mortgage: This loan type offers a fixed interest rate for a set period, ensuring consistent monthly payments. This period can extend up to five years.

Short-term mortgage: Borrowers can opt for a fixed-rate mortgage with a shorter duration, typically one to three years.

Long-term mortgage: Loans nearing the five-year mark are classified as long-term mortgages.

Variable rate: Interest rates in this category fluctuate based on the EIBOR during the chosen period.

Rates Ratio

Various ratios are used by UAE banks and financial institutions to determine loan eligibility. These include:

Debt Burden Ratio (DBR): This ratio compares the borrower's total monthly outgoing payments to their total income. The Central Bank of the UAE permits a maximum DBR of 50% of gross salary and regular income from a defined source.

Loan to Value Ratio (LVR): This measures the loan amount against the property's value. For expats, the maximum LVR varies based on the property's value and category.

Eligibility

Applicants must be at least 21 years old. Recent changes by the Central Bank of the UAE have relaxed certain mortgage requirements, including the maximum age limit for loan repayment.

Documents Required

Banks in the UAE may have specific document requirements for mortgage applications. Common documents include passport copies, Emirates ID copies, salary certificates, bank statements, and pay slips.

Important Considerations

The maximum mortgage loan tenor is 25 years. The DBR cannot exceed 50%. Repayments must be made from salary, business, or rental income, and must be paid at least quarterly.

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