Check Mortgage Loan Eligibility Criteria & Documents Required in Dubai

By Sakshi Srivastava - 03 Jan 2022 Last Updated: 28 Jan 2022
Check Mortgage Loan Eligibility Criteria & Documents Required in Dubai

When applying for a home loan in Dubai, you need to submit a few documents and should have the required eligibility criteria. In our study further, we will discuss the Mortgage Loan Eligibility Criteria & Documents Required in Dubai.

What is a Mortgage Loan?

A mortgage loan is a loan used by buyers of real estate to raise cash to purchase real estate, or by current property owners to generate funds for any purpose while establishing a lien on the property being mortgaged. Mortgage origination is the procedure by which the loan is "secured" on the borrower's property. This means that if the borrower defaults on the loan or otherwise fails to comply with its conditions, a legal process is put in place that permits the lender to take ownership of and sell the secured property to pay off the loan. You can buy property in Dubai in one of two ways: cash or with a mortgage. While a cash investment may be more cost-effective in the long run, a mortgage gives you more control over how you handle your money. If you want to buy a home in Dubai with a mortgage, you'll need to understand how the emirate's home loans work and what you'll need to do to receive one.

What are the Eligibility Criteria for Mortgage Loan in Dubai?

Whether you want to buy an apartment in Dubai or prefer a villa or townhouse, you may simply obtain a home loan if you match the qualifying requirements.  

If you are one of the following people, you can apply for a mortgage in Dubai:

  • A national or resident of the United Arab Emirates
  • Between the ages of 21 and 65
  • Have a monthly income of between AED 15K and AED 25K (salaried) (self-employed)

However, it is also to be noted that that the minimum wage for a property loan in Dubai varies depending on the bank. Some banks in Dubai will consider UAE nationals with a monthly income of at least AED 8k for home loans, however, this is mostly dependent on bank rules.

Non-residents in Dubai can also look into mortgage possibilities. However, their options are limited due to the fact that just a few institutions offer house loans to non-resident property buyers.

What are the Documents Required for a Mortgage Loan in Dubai?

Anyone who wants to buy property on a mortgage needs to first apply for one. Obviously, there is paperwork required to process a mortgage application in Dubai. The requirements may vary slightly from one bank to another, but for the most part, you will need the following documents to apply for a mortgage in Dubai:

  • A copy of your visa and passport
  • A copy of your Emirates ID
  • A salary certificate for proof of employment
  • Proof of residence (copy of tenancy contract or DEWA bill)
  • Pay slips and bank statements for the past six months
  • The latest statements of your credit cards

If you’re a non-resident applying for a home loan in Dubai, you only need the following paperwork:

  • A copy of your passport
  • Your bank statements for the past three months

How to Apply for a Mortgage Loan in Dubai?

The steps to apply for a mortgage loan in Dubai are elaborated below:

Choosing the Lender

Home mortgages in Dubai are obtained through banks and must be registered with the Dubai Land Department (DLD) in order to be legal. Dhanguard can assist you in choosing the right bank for you with considerably low-interest rates. Our connection with a pool of banks and a lot of information and insight into the local market will further enable you to concentrate your efforts on locating the ideal home instead of getting caught up in the mortgage procedure.

Choosing the Right Type of Mortgage

In Dubai, there are various forms of mortgages. They primarily fall into the fixed-rate and variable-rate mortgage categories. When selecting which sort of house loan is best for your situation, there are various aspects to consider.

  • These factors include, but aren’t limited to:
  • Your way of life
  • The type of property you'd like to purchase
  • The amount you require as a loan
  • The amount of cash you can afford to put down as a deposit

Moreover, most of the banks feature online mortgage calculators where you can enter your information and get an estimate of your monthly payments based on the current home loan interest rate in Dubai.

Obtaining the Pre-Approval Letter

Getting a pre-approval is the third and possibly most significant step in the process of applying for a mortgage in Dubai. A pre-approval letter for a house loan is an official document issued by a bank as proof of your ability to get housing financing. It specifies your maximum borrowing limit and increases your chances of securing a home loan.  A bank's pre-approval letter for a house loan usually takes three to five business days.

Choosing the Right Property

It's time to start looking for the right property now that you have a budget and a pre-approval letter. Depending on the lender, pre-approval letters are usually good for 60 to 90 days. This offers you plenty of time to look for the house you want to buy. People sometimes look for their dream home first, then apply for a mortgage. It might work, but you might not be able to get the entire amount of home financing you need to buy the house.

Finalization of the Purchase

You can contact your bank to finalize the loan agreement after you've found the property. A property evaluator may be assigned by the bank to determine the worth of your chosen property and assist you in making a good offer. You can pay your deposit and set a completion date for the purchase transaction if you and the seller agree on a price. The bank will release your loan money to the seller on the last day of property transfer, making you the owner of the property.

Conclusion

Whether you're purchasing a new home or building one for your family, you can trust on one of the country's top consultancies to provide you with inexpensive financing for the loan and term you choose. Dhanguard Consultancy can assist you in relocating to your dream home, allowing you to make lifelong memories.

By Sakshi Srivastava

03-Jan, 2022

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