A mortgage is a practical and widely used tool for purchasing real estate in Dubai. Below is a clear overview of how the process works and what should be considered before entering a deal.

In Dubai, mortgage approval defines what you can realistically buy, not the other way around.

Who Can Qualify for a Mortgage in Dubai

UAE residents are the primary category. Banks work with residents more readily and typically offer more favorable terms.

Non-residents face a more complex process:

  • Approvals are not guaranteed
  • Banks assess the country of residence, source of income, and risk profile
  • Checks are stricter, loan amounts are lower, and interest rates are higher

Mortgage approval for non-residents is handled on a case-by-case basis, and a significant number of applications are declined.

What Should Be Done in Advance

📌 The key rule: secure approval first, search for property second.

The correct sequence is:

  • Apply for pre-approval
  • The bank reviews income, credit history, country of residence, and documentation
  • Only after approval does it make sense to select a property and sign a sales agreement

⚠️ Without pre-approval, sellers and agents proceed with caution, and the risk of deal failure increases significantly.

Pro Tip

Pre-approval is not a formality — it is a risk filter for both buyer and seller.

Which Properties Qualify for a Mortgage

Apartments, residential units, villas, and commercial properties may qualify, provided the asset is officially registered with the Dubai Land Department (DLD).

The bank conducts an independent valuation of the property before issuing the loan.

How the Transaction Works

The process typically follows these steps:

  • Obtain bank pre-approval
  • Select a property and sign the purchase agreement
  • The bank performs property valuation
  • After valuation, a final offer is issued and manager’s cheques are prepared
  • A transfer date is scheduled at the trustee office
  • Ownership and mortgage registration are completed

Entry Costs: Example Breakdown

Example: property priced at AED 1,500,000.

  • Down payment: AED 375,000
  • DLD fee (4%): AED 60,000
  • Agent commission (2%): AED 30,000
  • DLD registration office: approximately AED 4,200
  • Mortgage registration (0.25%): approximately AED 2,813
  • Bank administrative fees: AED 2,000–5,000
  • Mortgage insurance: AED 800–1,500 per year

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What Happens in Case of Default

If mortgage payments stop:

  • A default notice is issued
  • Legal recovery procedures begin
  • The property may be sold below market value as a distressed sale
  • If sale proceeds do not cover the outstanding loan, the owner may remain liable to the bank

Final Note

If you are considering a mortgage in Dubai and want to assess your realistic chances of approval, we can help analyze your situation and connect you with the right broker to improve approval odds.