Getting Started: The basics of financing your Dubai Property

Have your eyes on an apartment or villa which you’re eager to buy? Wondering how you can finance your dream home in Dubai? No worries, we’ve got some Q & A’s that will surely guide you through the process.

Firstly, it’s important to check if you are eligible for a loan and whether or not you have any mortgage constraints. Most lenders have a minimum salary limit ( which may vary from 7k -15k) and you may find that definitions of income vary among lenders. Lenders prefer a fixed income rather than commission based salary income due to volatility in meeting monthly payments.

Some loans may seem more appealing than others, but be sure not to rush. It’s important to take the following into consideration:

  1. The maximum property price the lender is willing to finance
  2. The highest interest rate to value ratio.

Want to begin the process, but not sure what documents are required?

It’s important to make sure you have all the necessary documents, otherwise, the process application can be delayed. Below is the list of documents you need:


  1. Your Emirates ID and Emirates ID copy.
  2. Valid Visa with Valid Residence


Salaried Individual:

  1. Latest salary certificate
  2. Latest pay slips
  3. Previous employment proof
  4. Your bank statement for the past 6 months



  1. A financial audit of the past two years
  2. MOA (Memorandum of Association) needed
  3. Latest 6 months back transfer
  4. Latest 2 years audited financial


If you are a co-borrower than the below documents are required:

  1. A valid passport and visa page
  2. Income documents


Thinking to go for the lowest home loan but unsure if that’s the best decision?

  1. Assess the variable rate before choosing your loan.
  2. Evaluate the variable rate, which includes both base and margin rates after the fixed intro period and then decide on the best decision.
  3. Make sure your financial evaluation and property selection is based on variable rate and not the lowest fixed rate offered for a short intro period. This will help you make practical decisions in the long run.

How substantial should your down payment be?

The first thing to consider is the mortgage law. The first property you purchase in the UAE will require by law a minimum 25% downpayment of the value of the property for a property that is up to AED 5 Million. Including transfer, processing and agency commission fees, you should have 34% of the value of the property in the bank to buy your first property.

In late 2013, the Central Bank issued new mortgage cap regulations as per the below table:

Price Maximum applicable loan for non-GCC Maximum applicable loan for GCC Maximum Loan Term
First Property Up to AED 5 mill 75% 80% 25 years
First Property More than AED 5 mill 65% 70% 25 years
Additional Properties Any Value 60% 65% 25 years
Off Plan Any Value 50% 50% 25 years

For more on the Mortgage, law visit our Know Your Rights page. Here’s the recommended advice: pay a high down payment and opt for a lower loan to value. This will assist you with your future payments making them easier to manage.

Be aware of the transaction fees

If you are buying a property in Dubai – you are looking at paying the following transaction costs:

  • Property Registration Fee to DLD – 4% of the property purchase
  • Agent Fee ( 2% of purchase price)
  • Mortgage Processing/Arrangement Fee ( from 0 -1% of the loan)
  • Mortgage Registration Fee to DLD – 0.25% of the loan amount plus AED290
  • Valuation Fee  which is anywhere from AED2500 to AED3000 for most residential properties
  • Off-plan property buyers must pay a 4% Oqood Fee

Deciding to break the loan or make re-payments?

The UAE Central Bank has ruled that banks are allowed to ask for a maximum loan break cost of 1% of the loan amount or 10,000 AED depending on which is lower. In the scenario that you would like to cut off the loan during a fixed period, a few banks might charge more than the standard limit.

If you get promoted, begin to earn more money and decide to pay your mortgage faster, the bank has the authority to charge you payment fees. Although, some banks allow you to pay up to 20% before they charge their fees.

Seek the best advice and do your own research

Make sure you are getting the best advice from your mortgage consultant and be sure to do your own research because your financial incentives may not align with theirs.

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