Yes, it is possible to mortgage a property in Dubai. Both residents and non-residents can obtain a mortgage for purchasing property, whether it's a completed unit or an off-plan project. Many banks in Dubai, such as Emirates NBD, HSBC, Mashreq Bank, and Abu Dhabi Commercial Bank, offer a range of mortgage products tailored to different needs. The available loan-to-value (LTV) ratio varies depending on the buyer's residency status. For residents, the LTV ratio can be up to 80% for properties below AED 5 million, while for non-residents, it usually caps at around 50-75%, depending on the bank and property type.
The mortgage rates in Dubai are competitive, generally ranging between 3.5% and 4.5% for residents as of 2024, with different terms for 15 and 25-year mortgages. Non-residents may face slightly higher interest rates depending on the lender.
One significant aspect of Dubai mortgages is the robust legal framework set by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). Mortgages in Dubai require registration, and payments must be made into RERA-approved escrow accounts for off-plan projects, ensuring that buyers' investments are protected.
Compared to other countries, Dubai's mortgage market is unique due to the favorable tax environment—no property tax or capital gains tax—and the higher LTV ratios for residents. Non-residents may find the process more straightforward than in many countries, with clear regulations and options for both local and international buyers. However, a strong credit score and financial history are essential to secure favorable terms>
