Mortgage in Dubai for Foreigners
As an international buyer, you can obtain a mortgage from banks in Dubai even without living in the UAE. The conditions for foreigners (non-residents) differ from those for residents: lower loan-to-value ratios and stricter documentation requirements. In this guide we cover every aspect of a Dubai mortgage for foreign buyers.
Mortgage conditions for non-residents
The UAE Central Bank sets the maximum loan-to-value (LTV) ratio for mortgages. For non-residents, the following rules apply:
• First home: maximum 50% LTV (you contribute at least 50% of your own funds) • Second and subsequent homes: maximum 50% LTV • Commercial property: maximum 50% LTV • Off-plan property: maximum 50% LTV of the completion value
By comparison, for UAE residents: • First home up to AED 5 million: maximum 80% LTV • First home above AED 5 million: maximum 70% LTV • Second and subsequent homes: maximum 60% LTV
The minimum property value for a mortgage varies by bank but is typically AED 1,000,000 (approx. EUR 250,000). Some banks apply a minimum of AED 500,000.
The maximum term is 25 years, with the condition that the mortgage is repaid before your 65th birthday (employees) or 70th birthday (self-employed).
Banks and interest rates
The following banks in Dubai provide mortgages to non-residents:
• Emirates NBD: the largest bank in the UAE. Offers mortgages from 3.99% variable. Minimum property value AED 1,000,000. Fast processing and extensive experience with foreign clients.
• ADCB (Abu Dhabi Commercial Bank): competitive rates from 4.25% variable. Known for flexible conditions and good client service. Minimum value AED 500,000.
• Mashreq Bank: mortgages from 4.49% variable. Known for fast approval and less stringent documentation requirements. Popular with European buyers.
• HSBC UAE: a familiar name for European clients as an international bank. Rates from 4.75% variable. Advantage: if you already hold an HSBC account in Europe, the process is simplified.
• RAK Bank: aggressive rates from 3.89% variable. A smaller bank but growing in the mortgage market.
• Dubai Islamic Bank: Sharia-compliant financing (Ijarah/Murabaha). Rates comparable with conventional mortgages.
Interest is usually variable, linked to EIBOR (Emirates Interbank Offered Rate) plus a fixed margin. Fixed rates are available for periods of 1–5 years, after which the rate becomes variable.
Required documents
For a mortgage application as a non-resident, you will need the following documents:
Personal documents: • Valid passport (copy of all pages) • Proof of address in your home country (no older than 3 months) • Bank statements for the past 6 months • Proof of income: payslips (3–6 months) or annual accounts (2 years) for the self-employed • Last year's tax return • Overview of existing loans and liabilities
Property documents: • MOU (Memorandum of Understanding) or SPA (Sales and Purchase Agreement) • Title Deed of the property (for existing property) • Valuation report (usually arranged by the bank)
Important for international applicants: • Documents must be in English or accompanied by a certified translation • An annual income statement from your home country is generally accepted as proof of income • Self-employed applicants must be able to provide audited financials
The processing time for a mortgage application averages 2–4 weeks after all documents have been submitted.
Costs of a mortgage
Taking out a mortgage in Dubai involves the following costs:
• Mortgage registration fee: 0.25% of the mortgage amount (paid to the DLD) • Mortgage admin fee: AED 290 (paid to the DLD) • Bank processing fee: 1% of the mortgage amount (paid to the bank) • Property valuation fee: AED 2,500–3,500 (paid to the valuer) • Life insurance: mandatory with most banks, around 0.4–0.8% of the outstanding amount per year • Property insurance: mandatory, around AED 1,000–3,000 per year
Example calculation for a mortgage of AED 1,000,000: • DLD mortgage registration: AED 2,500 • DLD admin: AED 290 • Bank processing fee: AED 10,000 • Valuation: AED 3,000 • Total mortgage costs: AED 15,790
These costs come on top of the standard acquisition costs (4% DLD fee, commission, trustee).
Repayment and early settlement
Mortgages in Dubai are repaid by default in equal monthly instalments (annuity). The monthly payment covers interest and principal.
Example monthly payment for a mortgage of AED 1,000,000 over 25 years at 5% interest: • Monthly payment: approx. AED 5,850 • Total interest over the term: approx. AED 755,000 • Total payment: approx. AED 1,755,000
Early settlement is possible but comes at a cost: • Early settlement fee: a maximum of 1% of the outstanding amount or AED 10,000 (whichever is lower), this is capped by law by the UAE Central Bank • Partial prepayment: with most banks you can repay up to 20–25% of the outstanding amount extra each year without penalty
When refinancing (switching to another bank for better conditions), you pay: • The early settlement fee at the old bank • A new mortgage registration fee: 0.25% of the new mortgage amount • A processing fee at the new bank: 1%
Alternative financing options
Not every buyer opts for bank financing. There are several alternatives:
Developer payment plan: For off-plan projects, developers such as Emaar, DAMAC, Sobha and Nakheel offer payment plans. Typically: • 10–20% deposit • 30–50% during construction (in instalments) • 20–40% at handover or post-handover (up to 3–5 years after completion) These plans are interest-free and require no bank approval.
Own funds: Many international buyers finance the purchase entirely from their own funds. This saves mortgage costs (around 2–3% of the mortgage amount) and simplifies the purchase process.
Equity release on property in your home country: Some buyers increase the mortgage on their home in Europe to finance the purchase in Dubai. European mortgage rates are generally lower than Dubai rates. Consult your mortgage adviser about the options.
Personal guidance from Augusta experts
Every situation is different. Our advisors would be pleased to discuss your requirements, entirely without obligation.
Frequently asked questions
Can I get a mortgage in Dubai as a non-resident?+
Yes, several banks in Dubai provide mortgages to non-residents. The maximum LTV is 50%, interest rates range between 3.89% and 6.5% variable, and the term is up to 25 years. You need a minimum income, which varies by bank.
How much of my own money do I need?+
As a non-resident, you must contribute at least 50% of your own funds. For a home of AED 2,000,000, you therefore need at least AED 1,000,000 of your own money, plus around AED 160,000 in additional costs.
Which bank offers the best mortgage rate?+
Rates vary and are adjusted regularly. RAK Bank and Emirates NBD generally offer the most competitive rates. Augusta Properties can put you in touch with mortgage advisers who obtain quotes from multiple banks.
How long does a mortgage application take?+
On average 2–4 weeks after all documents have been submitted. A pre-approval can be obtained within 3–5 business days. We recommend starting the mortgage application in parallel with the purchase process.
Is the mortgage interest tax-deductible in my home country?+
Generally not. In the Netherlands, for example, the interest is not deductible because the property does not qualify as a primary residence, and the same applies in Belgium. The mortgage debt can, however, usually be deducted from the taxable asset value. Consult your tax adviser.
Is Islamic financing available?+
Yes, several banks in Dubai offer Sharia-compliant financing through Ijarah (lease-to-own) or Murabaha (cost-plus). The effective costs are comparable with conventional mortgages. Dubai Islamic Bank and Abu Dhabi Islamic Bank are the largest providers.