Local financial institutions in Dubai assess and issue mortgages based on several factors that help them determine the creditworthiness of the applicant and the risk associated with the property. Here’s a detailed breakdown of the process:

1. Income and Employment Verification: Banks typically require proof of stable income through salary slips, bank statements, or audited financials (for self-employed individuals). The applicant's debt-to-income ratio is a major factor.
   
   

2. Credit History Check: Financial institutions assess the applicant’s credit history to ensure there is a good record of repaying loans and managing debt.
   
   

3. Down Payment Requirements: UAE regulations stipulate that first-time buyers must put down at least 20% of the property value (for properties below AED 5 million), while non-residents or second-time buyers may need higher down payments.
   
   

4. Property Appraisal: The bank will conduct an independent valuation of the property to confirm its market value, ensuring the loan amount aligns with the actual value of the property.
   
   

5. Loan Approval and Terms: Once the applicant meets the financial criteria, the mortgage is issued. Terms like the interest rate (fixed or variable) and loan duration (usually 25 years) are determined based on the applicant's profile and the bank’s risk assessment.