What is the maximum amount I can borrow for a property purchase?
In Dubai, the maximum amount you can borrow for a property purchase is determined by the Loan-to-Value (LTV) ratio, which varies based on your residency status, the value of the property, and whether it's your first property or an additional investment.
For UAE Nationals: You can borrow up to 85% of the property’s value if the property is worth AED 5 million or less. For properties valued over AED 5 million, the LTV decreases to 75%.
For Expats: The maximum LTV is 80% for properties valued at AED 5 million or less. If the property exceeds AED 5 million in value, the LTV drops to 70%.
Off-Plan Properties: The LTV for off-plan (under construction) properties can be lower, typically around 50%, depending on the stage of construction and the developer’s reputation.
It's also important to note that lenders will assess your income, existing liabilities, and credit history before determining the exact amount you can borrow. The loan term typically ranges up to 25 years, and the maximum term is often tied to your retirement age, which is usually capped at 65 years for salaried employees and 70 years for self-employed individuals.
If you do not earn income in Dubai because you are a foreigner, you can still obtain a mortgage for purchasing property in Dubai, but there are additional considerations and requirements:
LTV Ratio: As a non-resident or foreigner with no income in Dubai, the Loan-to-Value (LTV) ratio may be lower compared to residents. Typically, you might be eligible for an LTV of around 50% to 75%, meaning you will need to provide a larger down payment.
Proof of Overseas Income: You will need to demonstrate a stable income from your home country. This involves providing detailed financial documentation, such as bank statements, tax returns, and proof of employment or business ownership. Lenders will assess your income to ensure you can meet the mortgage repayments.
Interest Rates: Non-residents may face slightly higher interest rates compared to residents. This is due to the perceived higher risk associated with lending to individuals who do not live or earn income locally.
Documentation: Additional documentation is required for non-residents. This includes a valid passport, proof of address in your home country, and possibly international credit reports. Some banks may also require a local UAE sponsor or guarantor.
Approved Banks: Not all banks in Dubai offer mortgages to non-residents, so you may need to work with specific banks that provide this service. It's advisable to consult with a mortgage broker who can guide you through the options available to non-residents.
Investment Visas: In some cases, purchasing property in Dubai might qualify you for a residency visa, which could then simplify the process of securing a mortgage. However, this depends on the property value and other criteria.
Obtaining a mortgage as a foreigner without local income is possible, but it involves navigating more complex requirements and higher costs
