UAE has been amongst the most popular destination for expats. Particularly in the business-friendly areas such as Dubai and Abu-Dhabi. As per the Business trends the mortgage market in UAE is well established with both local as well as international lenders in providing home loans to expats. Even though the criteria vary for foreign national, the options are available for residential and buy-to-let mortgages purpose when living in UAE.
Who can get a mortgage in UAE?
Foreign buyers can get a mortgage in UAE but there are certain eligibility criteria which they need to meet, like having current job for at least six months depending on the area you want to buy and the lenders rule also comes into picture accordingly.
The borrowers who are self employed must have their business run for minimum of two years. Moreover, having an existing relationship with the bank can be an advantage because the bank would be familiar with the circumstances.
There are certain banks who accepts the payment depending on the specific companies. This means that if you work for a government department, banking institution, or multi-national company, you are unlikely to have a problem.
Furthermore, if your employer is not well-established, you will have to struggle to get a loan from some lenders even if you’re creditworthy. It becomes very important to have a clean credit history when applying for loan, as lenders have the tendency to reject the poor applicants or non-existent credit files. Therefore, until you have checked your credit file and repaired any issues you shouldn’t apply for any mortgage.
If you have never had credit, you could consider taking out a credit card and paying it off in full each month to build up a credit history.
How to apply for a mortgage in UAE?
To apply for a mortgage, you can either approach directly to bank or seek advice from a mortgage broker, there are various websites which will give you a clear picture of comparisons where you can weigh up deals from a range of lenders. When it comes to expat borrower a mortgage expert can be a great asset. They will be able to help you navigate the quirks of the local market and find you the right deal for your circumstances.
Documents required to get mortgage in UAE
The documents may vary depending on the bank from which you are willing to apply mortgage
Lenders are likely to ask you for the following:
- A copy of your passport;
- Proof of residence in the UAE and proof of your current address;
- Financial documents, such as proof of salary, bank statements, or your tax return.