Foreign investors have been buying property in Dubai for years because it has world-class facilities, a great location, and policies that are friendly to investors. Many people think it’s hard to get a mortgage in Dubai if you’re not a local, but the process is actually easy and open to everyone. Here is a complete guide on how people who don’t live in Dubai can get a mortgage.
Understanding the Mortgage Market in Dubai
Non-residents can get a mortgage in Dubai in a number of different ways. Foreigners can borrow money from banks in Dubai as long as they meet certain requirements. Lenders are more interested in how well the applicant can pay back the loan, which is based on their income and security rather than where they live.
Steps to Getting a Mortgage in Dubai
- Connect with a Mortgage Broker
You don’t have to choose a home in Dubai before you apply for a mortgage. First, get in touch with a bank broker. They can help you through the whole process. Mortgage brokers know about the newest deals that different banks are giving and can help you find the best one. Most of the time, their services are free.
- Prepare the Required Documents
People who don’t live in Dubai must provide certain papers in order to apply for a mortgage there. These usually consist of:
- Proof of ownership of any businesses
- Financial statements: The last 12 months of bank statements for both personal and business accounts
Unlike some countries where salary slips are required, Dubai’s banks focus more on steady income, making it easier for business owners and self-employed individuals to qualify.
- Obtain Pre-Approval
An important step that lets you know how much you can borrow is getting pre-approved. It also lets sellers know that you mean business as a buyer. After the first set of papers are sent in, pre-approval usually takes about a week.
- Search for Property
The real estate market in Dubai moves quickly because agents are paid by fee and are very eager to close deals. When looking for a home, think about these things:
- Suitability for both short-term holiday stays and long-term living
- Prime locations such as Dubai Marina, which is known for its appeal and investment potential
- Sign the Sales and Purchase Agreement (SPA)
The SPA spells out the terms of the sale and protects both the buyer and the seller. It is a legally binding document. It lists the price that was decided upon and promises that the deal will be completed within a certain amount of time, usually two months. Once the SPA is signed, the house will not be advertised any further. If either party backs out, they usually have to pay a 10% penalty, unless the mortgage is not accepted.
- Property Valuation
Once you sign the SPA, the bank will look at the property to see how much it’s worth on the market and if it’s a good fit for the mortgage. This service generally costs about 1000 dirhams, which is paid for by the buyer.
- Receive the Offer Letter
After the home is valued, the bank will send an offer letter with all the mortgage terms. To sign this paper, you will need to go to the bank in person. The bank will give you a manager’s check for the debt amount after you sign.
- Transfer of Property
You can move the property into your name once you have the manager’s check. This process usually takes place at the office of the trustee, and both the buyer and the sale must be there. You can give power of attorney to someone else to represent you if you can’t be there. The move process is quick and easy, and it’s usually done in just a few minutes.
Benefits of Getting a Mortgage in Dubai as a Non-Resident
Minimal Documentation
As a visitor with a tourist visa, you don’t need to show much paperwork. You only need to show proof that you own the business and bank records from the last 12 months. Residents, on the other hand, need to send in more detailed paperwork.
Fast Process
Getting a mortgage is a quick process that’s usually done in a few weeks. You don’t have to wait to apply for a mortgage until you can legally live in the country.
Eligibility for a Golden Visa
You can apply for a Golden Visa if you buy property worth at least 2 million dirhams. This long-term residence visa lets you live and work in Dubai without a sponsor. This makes it a good choice for business owners and investors.
In Conclusion
It is possible to get a mortgage in Dubai even if you don’t live there. With the right help, it’s also pretty easy. You can get a house in this exciting city if you talk to an experienced mortgage broker, get all the paperwork ready, and understand the process. Dubai real estate investing is a good idea because of the benefits, such as the low paperwork needs, quick approvals, and the chance to get a Golden Visa.
DXB-VIP has a team of experts who can help you with any part of the service you need, making sure that your mortgage application goes smoothly and quickly.
