Guide to Mortgage Loans for Non-resident Investors in Dubai

Quality of life, tax-free income, and high savings attracted a lot of people to buy property in Dubai. If you are a non-resident and want to live in Dubai permanently then this is best to own a house. If you are interested and want to know the way to get a Dubai mortgage for non residents then you need to consult with the Taskmaster professionals who will guide you properly and also help you to obtain it in an easy manner. Here we mention a little guide on the mortgage loan for non-resident.

By now many non-residents have begun investing in purchasing apartments and villas in Dubai because they are comfortable with this status of life and certain people like tax-free capital gains and some others prefer tax-free rental yields are required which mainly can reach around 10% on small apartments. Recent changes in the UAE regulations have opened up UAE properties to foreign buyers and have had a remarkable impact on their industry.

Introduction of Mortgage Loans for Non-resident Investors in Dubai 

Mortgage loans are available for non-resident investors in Dubai. Several banks grant mortgage loans for non-resident as long as they stay in a special nation on the list of banks of sanctioned nations. These mortgage loans have come with many interesting features that range from a higher amount of loan to a competitive rate of interest and lucrative repayment duration. Few banks would permit non-resident investors to pledge for many properties, subject to affordability.

Non-resident investors are granted the right to purchase a mortgage from Dubai lenders, according to the Dubai mortgage law, for a non-resident to pay at least 25% of the value of the property as well as the cost of purchase, several lenders can ask for 50% LTV. The percentage of the down payment would be grown to 35% plus the cost of purchase of property above AED 5 million. If you have to mortgage for a second or third property, for instance, you will require at least 40 percent value of the property to cover your down payment.

Features of Mortgage Loans for Non-resident Investors in Dubai 

There are a few terms and features of mortgage loans given to the non-resident investors buying property in Dubai when it comes to the loan amount, LTV ratios, and interest rates.

Maximum Loan Amount – It would vary depending on and your financial circumstances. For example, while a bank provides funding of up to AED 10 million, then the second bank is wanted to funding up to AED 24 million.

LTV Ratios – As per the law of UAE mortgage, non-residents are needed to keep at least 20% of the purchase amount of the property as a down payment, if the property is worth up to AED 5 million. For properties over AED 5 million, the minimum down payment needed by a non-resident is 30%. Although, many banks in Dubai would only funding up to 50% of the property value for non-resident investors.

Eligibility Criteria to Get Mortgage Loans for Ono-resident Investors in Dubai 

Prior to applying for a mortgage loan in Dubai for non-resident investors, you will have to complete all the eligibility criteria. Remember that these criteria are usual rules of thumb and can vary between banks in the United Arab Emirates.

  • You will have to be a national of a nation that is on the list of banks prior to applying for a mortgage for non-resident investors in Dubai
  • You require to be a salaried or self-employed person to applying for a mortgage for overseas investors.
  • Several banks also have age limitations for a mortgage as a non-resident applicant in Dubai. For example, non-resident applicants must be above 25 years of age to applying for a mortgage loan to ADCB (Abu Dhabi Commercial Bank).
  • You must also complete the minimum monthly income demand of the bank; it may vary between UAE expatriates and non-citizens. In addition, this minimum income need will have to be accomplished after tax deductions. For instance, ADCB bank needs foreigners to have a monthly income of around AED 25,000 to be eligible for their mortgage loans.
  • Many banks also have a series of property developers and projects that are sanctioned for mortgage loans. Prior to applying for a mortgage loan, you will have to ensure that your property comes under this sanctioned list.

Documents Required to Get a Mortgage Loan for Non-resident Investors in Dubai

Before applying for a property mortgage in Dubai for non-resident investors, you have to present some essential documents. The documents you have to be prepare are mentioned below:

Your credit report from several banks Al Etihad credit bureau in the UAE in the form of documentation, a bank statement of the past two years, information of your credit card and all liabilities such as loans and credits cards, and more. A complete set of documents.

For the 50% loan choice, a scan of your valid passport and your past six months’ bank statements and proof of income in your country. No obligation letter will be asked from you.

You would require to sign a mortgage loan offer letter in Dubai at certain phases throughout the entire procedure, and it is compulsory and is in the last stage of buying at the Dubai Land Department.

This is good to consider the extra costs included in a property transaction like a property appraisal charge, commission of the realtor, charges of the land department, and fees to register the mortgage loans.

Above we mentioned a complete guide on the mortgage loans for non-resident investors in Dubai. We hope this will surely help you. If you understand more about non-resident mortgage in Dubai then you need to contact the Taskmaster loan brokers in Dubai who will definitely guide you on this matter and also provide you assistance during the entire process of getting a mortgage loan for non-residents.

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