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Best Mortgage Offers
for UAE Nationals

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

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Bank offers
Conditions
Documentation
Maximum instalment
Loan down payment
Process duration
Mortgage costs
Interest rates
Repayment rate

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

  • 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

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 USD 4k (or oveer USD 816k in annual turnover 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 70 years old

Required documentation
for pre-approval

Personal documentation

Emirates ID or passport

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
  • 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)

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 Down Payment Required
First property (Islamic financing) Under AED 5 million 85% 15%
Over AED 5 million 80% 20%
First property (standard financing) Under AED 5 million 80% 20%
Over AED 5 million 70% 30%
Any subsequent property Any price 65% 35%
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
Personalized offers from Kredium 30 minutes-1 hour
Mortgage application with a lender 1 day
Mortgage processing by a lender
• Salaried employees 7-10 days
• Self-employed 15-20 days
Mortgage closing with a lender 1 day

Costs of
mortgage approval

Costs Amounts in case of a AED 3,500,000 loan
Mandatory one-time costs in AED
Land department fee 175,580
Property registration fee 4,200
Mortgage registration fee 8,760
Valuation fee 3,675
Bank processing fee 36,750
Optional one-time costs in AED
Real estate agency or broker fee 91,875
Conveyancing fee* 8,000
Oqood fee** 175,000
Mandatory recurring costs in AED
Life insurance 392
Property insurance 191
Total 504,423
Without optional costs 229,548

* 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 3.5 million mortage loan with different rates and terms

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Mortgage instalments
Interest rate 10 15 20 25
1.90% 32,048 22,362 17,541 14,665
2.20% 32,519 22,847 18,039 15,178
2.40% 32,836 23,173 18,377 15,526
2.60% 33,154 23,503 18,718 15,878
2.80% 33,474 23,835 19,062 16,236
3.00% 33,796 24,170 19,411 16,597
3.20% 34,120 24,508 19,763 16,964
3.40% 34,446 24,508 19,763 16,964
3.60% 34,774 25,193 20,479 17,710

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 Adviser

+971 56 546 3279

Broj telefonaWhatsappEmail

Vanja

Real Estate Adviser

Broj telefonaWhatsappEmail
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