How to Get a Mortgage as an Expat in Dubai (2025 Guide)
Dubai’s real estate market continues to attract expatriates looking to invest in property. With its tax-free environment, high rental yields, and world-class infrastructure, Dubai offers a lucrative opportunity for foreign investors and homebuyers. However, securing a mortgage as an expat in Dubai can be a complex process, especially with the recent changes in mortgage regulations effective February 1, 2025.
This guide will help you understand how to get a mortgage as an expat in Dubai, covering eligibility requirements, best banks, updated down payment rules, and how to secure the best mortgage rates.
Can Expats Get a Mortgage in Dubai?
Yes, expats can legally obtain a mortgage in Dubai, but they must meet specific conditions set by UAE banks and the Central Bank of the UAE. The government allows foreigners to buy property in designated freehold areas, and banks offer home loans for expats in Dubai under strict lending criteria.
Legal Framework for Expat Mortgages
- Expats can own freehold properties in specific Areas.
- The UAE Central Bank regulates mortgage lending for foreigners.
- Non-residents can apply for mortgages but may face higher down payment and interest rates.
Updated Eligibility Criteria for Expat Mortgages in Dubai (2025)
To qualify for a mortgage for expats in Dubai, you need to meet the following criteria:
Basic Requirements
- Minimum Salary: Most banks require AED 15,000 – AED 25,000 per month.
- Employment Status: Full-time employees and business owners can apply.
- Visa Validity: Applicants must have a valid UAE residence visa.
- Credit Score: A strong credit history (AECB Score) improves your chances of approval.
- Age Limit: Must be between 21 and 65 years old.
Factors That Affect Mortgage Approval
- Employment duration – Banks prefer applicants employed in the UAE for at least six months to one year.
- Existing debts and liabilities – High debt levels reduce mortgage eligibility.
- Property type – Off-plan properties may require higher down payments.
Types of Mortgages Available for Expats in Dubai
Expats in Dubai have access to various mortgage options, each with different financial benefits.
1. Fixed-Rate Mortgages
- Interest rate remains constant for a set period (1–5 years).
- Best for those who prefer predictable payments.
2. Variable-Rate Mortgages
- Interest rates fluctuate based on market conditions (EIBOR).
- Best for those willing to take some risk for potentially lower rates.
3. Islamic Home Financing
- Sharia-compliant financing with profit rates instead of interest.
- Best for those looking for Islamic mortgage options.
Best Banks for Expat Mortgages in Dubai (2025)
Dubai has several banks offering competitive mortgage options for expats. Below are some top choices:
- Emirates NBD – Interest rate: 3.5% – 5%, Loan tenure: Up to 25 years.
- Mashreq Bank – Interest rate: 3.9% – 4.8%, Loan tenure: Up to 25 years.
- HSBC UAE – Interest rate: 3.75% – 5.2%, Loan tenure: Up to 25 years.
- Standard Chartered – Interest rate: 3.6% – 4.9%, Loan tenure: Up to 25 years.
Pro Tip: Compare offers from multiple banks to get the best mortgage rates.
Required Documents for a Mortgage Application
When applying for a Dubai property loan for expats, be prepared to submit:
- Passport and UAE Residence Visa (valid).
- Emirates ID.
- Salary certificate or proof of business income (for self-employed).
- Last 6–12 months bank statements.
- Credit report (from AECB – Al Etihad Credit Bureau).
- Property valuation report (provided by the bank).
Having all documents ready speeds up your approval process.
Updated Down Payment Requirements for Expats (2025)
Following the latest UAE mortgage rules (effective February 1, 2025), expats must now pay down payments upfront:
- For Properties Below AED 5 Million: Minimum 20% down payment.
- For Properties Above AED 5 Million: Minimum 30% down payment.
- For Off-Plan Properties: Usually 50% or more.
New Rule: Banks will no longer finance Dubai Land Department (DLD) and real estate broker fees as part of the mortgage. Buyers must now pay these costs upfront.
How to Get the Best Mortgage Rates in Dubai
To secure the best mortgage rates in Dubai, follow these strategies:
- Maintain a High Credit Score – Aim for a 750+ credit score.
- Opt for a Shorter Loan Tenure – Shorter loans come with lower interest rates.
- Compare Multiple Banks – Negotiate and get the best deal.
- Increase Your Down Payment – Higher down payments reduce borrowing costs.
Current Mortgage Rates in Dubai (2025): 2.99% – 4.99% depending on the bank.
Mortgage Repayment Terms & Conditions
- Loan Tenure – Expats can get a mortgage for up to 25 years, subject to age limits.
- Monthly Installments – Payments include principal repayment + interest/profit.
- Early Repayment Fees – Banks may charge 1%–3% of the outstanding loan.
- Refinancing Options – Some banks allow refinancing.
How to Apply for a Mortgage as an Expat in Dubai (Step-by-Step Guide)
- Research Mortgage Options – Compare banks, interest rates, and mortgage types.
- Get a Mortgage Pre-Approval – This helps you know how much you can borrow (valid for 30–90 days).
- Select a Property – Ensure it is in a freehold area.
- Submit a Mortgage Application – Provide the required documents.
- Bank Valuation & Approval – The bank assesses your financial profile and property value.
- Sign Loan & Property Sale Agreement – Finalize the process at Dubai Land Department (DLD).
Understanding Mortgage Fees & Hidden Costs
- Mortgage Processing Fee – 0.25% to 1% of the loan amount.
- Property Valuation Fee – AED 2,500 to AED 3,500.
- Mortgage Registration Fee – 0.25% of the loan amount + AED 290.
- Life Insurance – Required by most banks (cost varies).
Conclusion
Buying property as an expat in Dubai is a fantastic investment, but understanding mortgage requirements, interest rates, and hidden costs is crucial. With the new 2025 mortgage regulations, homebuyers must now pay DLD and broker fees upfront. By maintaining a good credit score, comparing mortgage options, and working with experts, you can secure the best mortgage rates and make homeownership in Dubai a reality.
FAQs
- What is the down payment for expats in Dubai?
- 20% for properties below AED 5M, 30% for properties above AED 5M.
- Can non-residents get a mortgage in Dubai?
- Yes, but with higher down payments and stricter terms.
- What is the maximum loan tenure for expats?
- 25 years, subject to age limits.
- Which banks offer the best mortgages?
- Emirates NBD, HSBC UAE, Mashreq Bank, Standard Chartered.
- Are DLD and broker fees included in mortgages?
- No, as of February 2025, these must be paid upfront.