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Best Mortgage Offers for Expats in the UAE

Quick and easy way to your new home or investment with
affordable mortgages

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Buying vs. renting in the UAE

Buy

Pros

  • Invest in your future
  • Change it how you want
  • Use for equity or investment
  • Rent out or sell for profit

Cons

  • Saving for a down payment
  • Upfront costs

Rent

Pros

  • Lower upfront expenses
  • Freedom to move
  • Landlord responsible for repairs and maintenance

Cons

  • No major changes allowed
  • Rent can increase
  • Short-term home
  • Dependent on landlord plans

Rent

Pros

  • Invest in your future
  • Change it how you want
  • Use for equity or investment
  • Rent out or sell for profit

Cons

  • No major changes allowed
  • Rent can increase
  • Short-term home
  • Dependent on landlord plans

Current bank interest rates in UAE

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Conditions for
pre-approval

Employment

  • Salaried employees - at least 6 months in their current job
  • Self-employed - running their business for
    at least 2 years

Credit history

  • Good credit history is necessary

Income

  • Minimum income considered by many banks starts from AED 15,000 (or from AED 25,000 for self-employed)
  • Maximum 50% of income dedicated to repayment

Employment sector

  • Some banks only offer loans to employees from well-established
    institutions or government departments

Down payment

  • Starting from 20%
    (15% with national Islamic funding options)

Loan term

  • Up to 25 years

Age range

  • Between 21 and 65 years old (70 for self-empoyed)

Required documentation
for pre-approval

Personal documentation

Emirates ID and passport or visa

Proof of employment

Proof of residence address
(DEWA bill or tenancy contract)

Salaried employee:
  • Latest salary certificate
  • Latest pay slips (if there is more than 10% variation in income)
  • Proof of previous employment if in current for less than 3 years
  • Any additional bank statements from the last 6 months
Self-employed:
  • Valid Trade License copy
  • MOA (Memorandum of Association) including all amendments
  • Bank statements from the last 6 months
  • Audited financials from the last 2 years

Identical documentation for co-borrowers
(if applicable)

Property documentation

  • Quote or offer letter from the seller
  • Sale or purchase agreement
  • Title deed or site plan

* For government funded options, such as: Sheikh Zayed
Housing Program (SZHP), Mohammad Bin Rashid Housing
Establishment (MBRHE) and Sharjah Housing Program (SHP)

Property documentation

  • Quote or offer letter from the seller
  • Sale or purchase agreement
  • Title deed or site plan
  • Copy of valid facility approval*

* For government funded options, such as: Sheikh Zayed
Housing Program (SZHP), Mohammad Bin Rashid Housing
Establishment (MBRHE) and Sharjah Housing Program (SHP)

Maximum monthly instalment and loan amount

Monthly income in AED Maximum monthly instalment in AED Maximum mortgage loan
amount in AED
10,000 5,000 1,500,000
12,000 6,000 1,800,000
14,000 7,000 2,100,000
16,000 8,000 2,400,000
18,000 9,000 2,700,000
20,000 10,000 3,000,000
22,000 11,000 3,300,000
24,000 12,000 3,600,000

Mortgage loan down payment

Property type Property price Maximum LTV
(loan-to-value ratio)
Minimum DownPayment Required
First property Under AED 5 million 75-85% 15-25%
First property Over AED 5 million 65-70% 30-35%
Any subsequent property Any price 60% 40%
Off-plan / under-construction property Any price 50% 50%

Mortgage
duration process

Typical process phase Estimated duration
Registration and loan inquiry at Kredium 5-10 minutes
Mortgage pre-approval through Kredium up to 24 hours
Personalized offers from Kredium up to 24 hours
Mortgage application with a lender 1-5 days
Mortgage processing by a lender
• Salaried employees up to 7 days
• Self-employed a couple of weeks
Mortgage closing with a lender 1 day

Costs of
mortgage approval

Costs Amounts in case of a AED 2,500,000 loan
Mandatory one-time costs in AED
Land department fee 125,580
Property registration fee 4,200
Mortgage registration fee 6,260
Valuation fee 3,675
Bank processing fee 26,250
Optional one-time costs in AED
Real estate agency or broker fee 65,625
Conveyancing fee* 8,000
Oqood fee** 125,000
Mandatory recurring costs in AED
Life insurance 280
Property insurance 136
Total 365,006
Without optional costs 166,381

* A paid legal professional to manage the purchase or sale, usually from AED 6,000 to AED 10,000

** A fee for off-plan mortgages, usually 4% of purchase price

Monthly instalments for a AED 2.5 milion mortgage loan with different rates and terms

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Mortgage instalments
Interest rate 10 15 20 25
1.90% 22,892 15,973 12,529 10,475
2.20% 23,228 16,319 12,885 10,841
2.40% 23,454 16,552 13,126 11,090
2.60% 23,681 16,788 13,370 11,342
2.80% 23,910 17,025 13,616 11,597
3.00% 24,140 17,265 13,865 11,855
3.20% 24,372 17,506 14,117 12,117
3.40% 24,605 17,750 14,371 12,382
3.60% 24,839 17,955 14,628 12,650

Early mortgage repayment

1% fee (1.05% inclusive of VAT) on the outstanding loan amount

The fee is capped at AED 10,000 (AED 10,500 inclusive of VAT)

Some lenders allow early settlement up to 40% of the loan amount with no fee required

Some lenders don't charge a fee for early settlements up to 15% of the outstanding amount (limited to once per year)

Imagine you want to prepay your loan and fully close it in 5 years
Year 0 1 2 3 4
Outstanding amount 3,500,000 2,800,000 2,100,000 1,400,000 700,000
Prepayement 700,000 700,000 700,000 700,000 700,000
Fee 10,500 10,500 10,500 10,500 7,350
Imagine you want to prepay your loan and fully close it in 5 years
Year 0
Outstanding amount 3,500,000
Prepayement 700,000
Fee 10,500
Year 1
Outstanding amount 2,800,000
Prepayement 700,000
Fee 10,500
Year 2
Outstanding amount 2,100,000
Prepayement 700,000
Fee 10,500
Year 3
Outstanding amount 1,400,000
Prepayement 700,000
Fee 10,500
Year 4
Outstanding amount 700,000
Prepayement 700,000
Fee 7,350

Rishi Dewani

Mortgage Advisor

+971 56 546 3279

Broj telefonaWhatsappEmail

Vanja

Real Estate Adviser

Broj telefonaWhatsappEmail
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