Mortgages In Dubai

The Dubai mortgage market has developed greatly since foreigners have been given the right to own freehold property and many international banks have entered the mortgage arena. The market is very competitive and purchasers are well advised to shop around for the best deal.

Mortgages are available to buyers of residential property as well as those interested in buying for the buy-to-let market. The lending criteria vary from lender to lender, but in general purchasers can expect to get 80% mortgage on the value of the property if they are resident in Dubai and 70% if they are non-resident. The mortgage term is usually for 20 years and must be paid by the borrower’s 60th birthday.

Non-status/self-certification mortgage facilities are available in Dubai on a very limited basis for loans under 60% of the property value.

Documents Required for Mortgage Application:

Each lender has their own requirements, but the basic ones are:

Application form
Passport
If you are employed you need to provide the following documentation as proof of your income over the last 5 years:
- copies of your last three months pay slips
- copies of your last 5 years P60/Employer’s Reference
- copies of your last 6 months Personal Bank Statements
For the self-employed the following documentation is required:
- copies of your last 5 years audited accounts
- copies of last 12 month's business accounts
- last 6 months personal bank statements

Equity Release

Many investors choose to to use equity release as a method to release funds in a property they have in their own country. If you own property and would like to borrow against it, we can introduce you to independent financial advisors who can help you raise the necessary finance.

Mortgage Providers:

The information below shows the main Dubai mortgage providers and summarises rates, requirements and charges. It is intended as a guideline on current conditions which are subject to change from time to time. Purchasers are advised to contact the institutions themselves for further information.

Abu Dhabi Commercial Bank
Available to	UAE Nationals, Expats.
Length of Mortgage	25 years for all.
Interest rate	1. Base rate plus 2.5% for the first year. 2. Varying rate capped at 9.00% for three years. 3. Varying rate capped at 9.50% for 5 years. 4. Fixed rate of 8.50% for three years. Fixed rate of 9.00% for five years.
Maximum loan amount	Up to 90% finance offered, with a ceiling of AED 3.5 million (483,000 GBP).
Insurance requirements	Life insurance, Loan insurance.
Minimum salary (AED)	10,000.00 (1,381 GBP)
Charges	Processing fee of 1%, minimum of AED 5,000 (GBP 700). Early repayment penalty 3% of the outstanding amount, 5% if it is a bank buyout. Valuation fee up to AED 3,000 (GBP 414).

Amlak (Shariah compliant)

Available to	UAE nationals, GCC residents, UAE residents and non-UAE residents
Length of Mortgage	Upto 15 yrs for GCC, UAE & non-residents, 25 yrs for UAE nationals from 01/08/05 Amlak offers all new UAE resident customers upto 20 years on villas and townhouses.
Interest rate	Variable rate (residents): 6.75% for 70% and below 6.95% for 80% finance, 7.25% for 90%, (Non-residents 7.50%) Fixed rate (residents): 7-15 yrs 10.50%; 5 - 7yrs. 8.75% Upto 5 yrs. 8.00% (Non-residents add 0.50
Maximum loan amount	Depends on salary
Insurance requirements	Compulsory property insurance, but not life insurance
Minimum salary (AED)	N/A
Charges	No early settlement charge. No partial repayment charges, 1% processing fee- Min. AED 5,000 (700). Non-resident-1.25%- Min. -AED 5,000, Valuation fee up to 3,000 (GBP 414).

HSBC UAE

Available to	UAE and Non - UAE residents
Length of Mortgage	Up to 20 yrs. subject to repayment by 60th birthday. 20 yrs for villas and townhouse, 15 yrs for apartments
Interest rate	Many packages are available a rough guide is 70% = 6.75% variable, > 70-80% = 7% variable.
Maximum loan amount	Depends on individual financial status. Standard precompletion properties is 80% of developer price, completed properties is 80% of market value as determined by an appointed valuer. (Valuation will be charged).
Insurance requirements	Mortgage protection policy & Buildings Insurance required
Minimum salary (AED)	Depends on financial status.
Charges	1% of the loan amount is levied as arrangement fee for the mortgage.

Lloyds TSB

Available to	UAE residents, non resident UK expatriates only
Length of Mortgage	15 yrs.
Interest rate	7.5% variable, straight repayment mortgage. Lump sum repayments possible at no charge
Maximum loan amount	Depends on salary.
Insurance requirements	Life cover is mandatory
Minimum salary (AED)	12,000 (1,660)
Charges	0.5% arrangement fee on completed application. Valuation fee of AED 2,500. Fees can be added to loan amount. No early repayment penalties

Mashreqkbank

Available to	Residents & Non - residents
Length of Mortgage	Residents & Non - residents
Interest rate	For residents 6.25 & 7.25% fixed until Dec 2007 and for non – residents 6.5% to 6.75% and then ·3.75+ EIBOR Varies depending on the property
Maximum loan amount	Up to 65% for non-residents and 70% for residents.
Insurance requirements	Life and property insuran
Minimum salary (AED)	10,000 AED (1,400 GBP)
Charges	1.23% processing fee on the loan amount.

National Bank of Abu Dhabi

Available to	UAE Nationals, Expats only in Abu Dhabi/Dubai emirates
Length of Mortgage	Up to 25 years for all
Interest rate	Base rate + 1%.
Maximum loan amount	Up to AED 5,000,000. (690,000 GBP)
Insurance requirements	Property and life Insurance
Minimum salary (AED)	10,000.00
Charges	Processing fee AED 1,500 Minimum of AED 5,000, repayment penalty of 1% of outstanding, or AED 10,000 whichever is greater.

National Bank of Dubai

Available to	UAE nationals, GCC residents, UAE residents and Non-residents
Length of Mortgage	20 yrs for UAE Nationals, 15 yrs for Expats, 12 yrs. For Non-residents
Interest rate	7.65% on reducing balance basis
Maximum loan amount	Multiples of salary for 60 months, or 80% of the property valuation (by the Land Department), whichever is lower
Insurance requirements	Life and property Insurance mandatory. Monthly premium. 0.40% per annum of the loan amount
Minimum salary (AED)	8,000.UAE Nationals, 10,000 Expats, 25,000 Non-residents
Charges	1% processing fee, or AED 5,000 whichever is higher

RAKbank

Available to	UAE nationals, Expats and Non-residents. Minimum age 21 yrs
Length of Mortgage	21 years for all.
Interest rate	6.50 - 7.25%, on reducing balance basis (salaried customers and self employed with audited financial statements), 6.50 - 7.75% (self employed), 6.50 - 6.70% (salaried with salary transfer), 7.00-7.50%
Maximum loan amount	Depends on individual financial status - usually up to AED 5 million
Insurance requirements	Property Insurance mandatory. Life insurance is optional
Minimum salary (AED)	5,000 for single name ownership otherwise 8,000 for joint name
Charges	Loan processing fee of 1.25% of loan amount. Early repayment penalty of 1% of the outstanding if within five years

Union National Bank Dream Home Loan

Available to	UAE Nationals, Expats
Length of Mortgage	UAE Nationals, 25 years Expats -20 years
Interest rate	6.75% on a reducing balance basis depends on down payment 10% - 6.75% flat rate 20% - 6.5% 30% - 6.25%
Maximum loan amount	Up to 5 million AED.
Insurance requirements	Property and life insurance included in loan 0.45% of loan amount applied for 50% of length of loan, paid in advance.
Minimum salary (AED)	8,000.00
Charges	Processing fee or 1%, minimum of AED 5,000. Early repayment penalty of 1% of outstanding amount, 1.5% for a bank buyout