Your guide to a hassle-free home loan process

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Admin , Facility Supervisor

26/11/2023, 7 Minutes Read

Considering buying a house in Dubai but don't know where to start? Buying a house is one of the most important decisions one makes in a lifetime. At Wasl, we understand the process can be overwhelming for many of us. So, we came up with a quick checklist to make this process much less stressful.

Without further ado, let us straight jump on to the criteria of home buying.

 

Who can buy a property in Dubai?

Whether you want to buy an apartment or a villa – you can consider the option of getting a home loan through your bank. In Dubai, getting a home loan is a rather easier process – provided you meet the eligibility criteria.  This applies to the UAE nationals and residents alike – however, you should be aged between 21 and 65 years and have a monthly income in the bracket of AED 10,000 - 15,000 (salaried) and AED 25,000 (self-employed).

Who can buy a property in Dubai?

 

Eligibility for loan

To be eligible for a home loan in Dubai, one must be able to demonstrate a stable income and have a good credit rating. Some banks have a list of approved employers to decide your eligibility.

  • Borrowing limits 

    Expats who are first-time buyers can borrow up to 80 percent of their property value in loan on properties that cost less than AED 5 million. UAE nationals may borrow up to 85 percent of the property value, on properties less than AED 5 million. For properties over AED 5 million, this decreases to 65 percent for expats and 70 percent for UAE nationals.

  • Down payments

    Subsequently, as a first-time buyer of properties less than AED 5 million, you need to put down a deposit of 20 percent as a UAE resident and 15 percent for UAE nationals. For properties over AED 5 million, the down payment increases to 35 percent for residents and 30 percent for the UAE nationals.

     

Eligibility for loan

 

Documents required for a loan

If you want to purchase a property in Dubai and apply for a home loan, you will need to submit the below paperwork. The final approval of these documents usually takes around two-three weeks:  

As a Dubai resident, you will need a passport, a residency and Emirates ID, latest salary certificate, last 6 months of statements for all accounts and payslips, proof of current address (DEWA bills or Ejari contract), latest credit card(s) statements as well as proof of additional income (rent, bonuses, etc.).

UAE nationals will need to submit a copy of their passport, financial documents, such as proof of salary, bank statements for the last 6 months, as well as proof of residence in the UAE and their current address.

Documents required for a loan

 

The process

The first step is to approach a bank directly or take advice from a mortgage broker in arranging the required documents. In Dubai, home mortgages are sourced through banks and must be registered with the Dubai Land Department (DLD) to be legally valid.

The second step would be to research the right type of loan. The documents will then be submitted to a bank or a financial institution of your choice. There are different types of home loans in Dubai, which vary according to the rate of interest. Most banks have online loan calculators that allow you to input your variables and get an idea of the monthly installments, under the applicable home loan interest rate in Dubai.

The third and most important step during the loan process is getting a pre-approval letter. A home loan pre-approval letter is an official document issued by the bank as evidence of your eligibility for obtaining housing finance. This document outlines the maximum borrowing limit and helps in obtaining a home loan. Normally, it takes up to three to five working days to get a home loan pre-approval letter from the bank and is mostly valid for 60 to 90 days, depending on the lender.  

Once you have agreed on the property and the price, make the down payment and get the repayment schedule for servicing the loan. Provide any documents required by your bank to finalise the loan.

On the final day of property transfer, the bank or mortgage lender will release your loan amount to the seller – making you the owner of the property.

Dubai welcomes everyone from across the world to buy a home here – the city offers all the facilities for a better living. It is an ideal location to invest for many reasons.

Gardenia Townhomes II

At Wasl, we help you find the home of your dreams. Get in touch with one of our sales agents to know more about our freehold developments and the units for sale which include Gardenia Townhomes II and the second building of The Nook at Wasl gate in Jebel Ali, as well as, Park Gate Residences and One Residences at Wasl1 development, located next to Dubai World Trade Center. For additional information, contact 800Wasl (9275).