Guide to Mortgage Loans for Non-Residential Investors in Dubai
In a city that continues to experience significant economic growth, Dubai property has become an increasingly attractive proposition for foreigners. Dubai offers its residents an exceptionally high standard of living, with luxury developments like Tilal Al Ghaf that have responded adeptly to the residential needs of both local Emiratis and expatriates.
It's not only cash buyers taking a bite out of the Dubai property market. Emirati banks offer home loans to non-residents, making a Dubai investment all the more achievable. If you’d like to learn more about Dubai mortgages for non-residents, our concise guide will answer all your key questions.
Can non-residents get a mortgage in Dubai?
The great news for foreign investors is that, yes, non-residents do have several mortgage options for properties in Dubai's freehold districts. When doing your home loan research, it's important to note that non-residents are subject to different mortgage rules than residents.
What are the Dubai mortgage eligibility criteria for non-residents?
If you want to know how to get a home loan in Dubai, you must familiarise yourself with the local bank’s mortgage eligibility criteria. These vary from bank to bank, but commonly, to tick their boxes, you must:
- Be a citizen of an eligible country.
- Receive a monthly salaried income that meets the bank's minimum threshold or show proof of sufficient earnings as a self-employed individual.
- Fall under the bank's maximum age limit.
Which documents do Dubai mortgage providers require?
Purchasing Dubai property for foreigners requires the correct documentation. Your mortgage provider may request copies of your passport, salary slips (if you're employed), tax returns, trade licenses, and audited financial statements (if you're self-employed), as well as your last three to six months of bank statements as proof of income, and details of any pre-existing loans.
What are my mortgage options?
Dubai mortgages for non-residents include fixed-rate options, which allow you to lock the interest rate for an agreed term, and variable mortgages, whose interest rates fluctuate with the market. Currently, you can expect to pay between 3 and 5% on a home loan as a non-resident.
Non-residents may also be eligible for a discounted rate mortgage, which delivers a lower interest rate for the first few years, or for a capped mortgage, which protects you against interest rate turbulence.
In terms of LTV (loan-to-value), foreign investors should expect to make a down payment of between 20 and 50% of the Dubai property’s value.
Are there fees involved?
As with all house sales, there are fees involved with purchasing Dubai property for foreigners. Notably, you will need to pay a transaction fee when registering your property purchase with the Dubai Land Department, typically around 4% of the home's value.
Legal and ownership considerations
You do not need to be a resident of Dubai to invest in the city’s property market. Non-residents are permitted to purchase property in freehold areas of the city, such as Tilal Al Ghaf, and will benefit from full ownership rights.
Investors may be interested to know that purchasing property in Dubai is a potential route to long-term residency. If you invest over 750,000 AED, you could apply for the two-year, renewable Property Investor Visa. In comparison, non-residents who invest over 2 million AED in off-plan properties (those under construction) will be granted the coveted Golden Residence Visa. This allows you to reside in Dubai for ten years.
A bright investment opportunity
Savvy investors have Dubai firmly in their sights. Beyond the tax-free status (maximising returns) and the potential to secure investment-based residency visas, the property market presents a perfect opportunity for investors to flex their financial muscles.
ROIs are exceptionally healthy, sitting between 5% and 8%, with opportunities to reap the highest returns through savvy investments in the city's master-planned developments, such as Tilal Al Ghaf's aspirational neighbourhoods. With excellent rental yields, investors are willing to think long-term, nurturing a diversified portfolio.
Tilal Al Ghaf: A safe investment
Investors have a wide choice of high-end property developments to explore in Dubai. So, why choose Tilal Al Ghaf when you're looking to make an overseas property investment?
The desirability of Tilal Al Ghaf is a green flag for investors, who understand that Emiratis and expats alike will seek out attractive, sustainable, lifestyle-focused developments that curate a sense of community. Modern infrastructure, high-end amenities, a superb school, and a convenient city location ensure that properties within Tilal Al Ghaf will continue to grow in popularity.
If Dubai's thriving rental market and the potential for generous returns are music to your ears, why not browse our website and explore your next investment opportunity?
