For expats looking to buy property in the UAE, securing a mortgage can be a bit more complex than for UAE nationals. However, with the right information and preparation, expats can navigate the process successfully. Here’s what you need to know:
1. Eligibility Criteria
Expats can apply for a mortgage in the UAE, but certain requirements must be met:
- Residency: You need to have a valid UAE residency visa.
- Age: Lenders typically require you to be between 21 and 65 years old at the time of loan maturity.
- Income: Banks will assess your income to ensure it meets the minimum requirements, usually around AED 15,000 to AED 25,000 per month, depending on the bank.
2. Loan-to-Value (LTV) Ratio
The LTV ratio, or the percentage of the property’s value that can be borrowed, is typically lower for expats than for nationals. In most cases:
- Expats can borrow up to 80% of the property value for a residential property.
- For investment properties, the LTV may be lower, typically around 60-70%.
3. Down Payment
You will need to make a down payment, which is usually around 20-25% of the property’s value. The exact amount will depend on the property type and your financial profile.
4. Interest Rates and Terms
The mortgage rates for expats can vary, with both fixed and variable options available. Rates tend to be higher for expats than UAE nationals, but shopping around and comparing lenders can help you find the most competitive deal. Mortgage terms are typically between 15 to 25 years.
5. Documents Required
Be prepared to submit the following documents:
- Passport copy and UAE visa.
- Salary certificate or bank statements.
- Property details (sale agreement, etc.).
- Credit report (usually from the Al Etihad Credit Bureau in the UAE).
6. Special Considerations
- Legal Assistance: Expats should seek legal advice to ensure they understand the terms of the mortgage and the property’s legal status.
- Financial Planning: Consider your long-term financial stability. Since mortgage rates can fluctuate, ensure you have a clear plan for repayment.
Conclusion
Getting a mortgage as an expat in the UAE is entirely possible with the right preparation. By understanding eligibility requirements, loan terms, and the application process, you can make informed decisions and secure the best mortgage deal to buy your dream property in the UAE.
