FAQ
How much income do I need to be able to qualify for a mortgage in the UAE?
Salaried Employees: Minimum monthly income of AED 10,000 required.
Self Employed Applicants: Minimum monthly income of AED 25,000 required.
How much down-payment do I need, to purchase a property in the U.A.E.?
UAE Nationals: 15% for first (active) mortgage and 35% for every mortgage thereafter.
UAE Residents (expats): 20% for first (active) mortgage and 40% for every mortgage thereafter.
Non-UAE Residents: 40% of the property value.
Are there any hidden fees that I should know about?
Borrowers have to pay a fees, ranging from AED 2,500 to AED 3,150, to the banks at the time of evaluation of the property. Also, a processing fee ranging from 0 to 1.25% of the loan value (+VAT) may be charged by the banks (depending on bank and type of transaction) at the time of final approval to process the loan.
Some Banks may charge a pre-approval approval fee of up to AED 5,000, which may or may not be adjusted towards other aforementioned fees at the time of loan disbursal, depending on the bank.
It is to be noted that in most cases, the pre-approval is free and the processing fees does not exceed 0.5% (+VAT) of the loan amount.
How long can I get my mortgage for?
Salaried employees can borrow up to the age of 65 years and self-employed individuals can borrow up to 70 years of age, with the constraint that no mortgage loan tenure can exceed 25 years in length.
What if I wish to pay off my mortgage earlier than the agreed time line with the bank?
The borrower can choose to do so by paying the balance loan amount, exclusive of future interest, and in addition to a minimal early settlement fee, as mentioned in the final offer letter from the bank.
Most banks allow early settlement of a percentage of the balance loan amount every year without additional charges. These percentages may be different for different banks.
Do I need to transfer my salary to the bank that gives me a mortgage?
While this is not required in most cases, some banks incentivize borrowers with cash back schemes, lower rates, fee waivers, etc. if they agree to moving their salary transfers to the bank they are getting their mortgage from.
Does my company have to be listed with the bank for me to get a mortgage with them?
No, this is not required in most cases, however, banks may refuse to lend to you if you work for a high risk or restricted company/ industry.
Do I have to pay off my mortgage immediately and in full, if I lose my job and/or move to a different country?
No, you do not, as long as you are able to make your regular monthly installments without having to default to a point that the bank has no choice but to foreclose your property.
If your UAE residence status changes, you will be required to notify the bank so your mortgage can be converted from a resident plan to a non-resident facility, or vice-versa.
What happens to my mortgage if I change jobs?
It does not affect your mortgage, as long as it does not affect your ability to furnish your regular monthly installments.
Can I transfer my mortgage to a different bank if they are offering me a better product/ service?
Yes you can, and we can help you with it.
