DUBAI LOAN AND MORTGAGE FOR NON-RESIDENT

Dubai / UAE Loans & Mortgages for Foreign Non-Residents — What They Are, How They Work, and What to Expect

A non-resident loan/mortgage in Dubai (UAE) is financing granted by a UAE bank or finance company to a borrower who does not hold UAE residency. In practice, offerings focus on non-resident home mortgages (secured on UAE property). Standard unsecured personal loans are generally not available to non-residents; lenders typically require UAE residency, Emirates ID, and local income for unsecured credit.

How UAE non-resident mortgages work

• Security & purpose — The property in the UAE is taken as collateral (purchase of completed/off-plan units or refinance of existing property).
• Rates — Quoted as a fixed or variable rate (often linked to EIBOR) plus a bank margin. For illustration, indicative non-resident pricing commonly falls in the ~4.5%–7.5% p.a. band subject to market conditions, profile and LTV.
• LTV — Maximum loan-to-value for non-residents is usually lower than for residents (often 50%–60%, occasionally higher for select profiles/projects).
• Tenor — Up to 25 years (300 months) is typical, subject to age at maturity and lender policy.
• Costs — Arrangement/processing fees, valuation, property registration/notary, life/property insurance; some fees are flat, others % of loan.

Common product types for non-residents

• Mortgage — Purchase (completed/off-plan; staged drawdowns for some projects).
• Mortgage — Refinance (rate/tenor change or equity release, subject to caps and valuation).
• Islamic home finance (e.g., Ijara, Murabaha) with profit rates instead of interest.
• Developer payment plans (post-handover schedules). Not a bank loan; typically 0% interest but large down-payments and strict timelines.
• Cash-secured lending (Lombard/loan-against-deposit) for HNW clients; may be available on a case-by-case basis.

Do & Don’t for applicants

• Do prepare full income documentation (salary slips, employment letter, tax returns) and recent bank statements in the currency/country where you earn.
• Do check LTV caps, rate type (fixed vs variable), lock-in, early-settlement charges, and total cost of credit in AED.
• Do consider FX risk if your income is not in AED; stress-test for EIBOR & exchange-rate changes.
• Don’t rely solely on headline rates. Compare all fees (processing, valuation, insurance) and the APR/total repayable.
• Don’t send any “release” or “activation” fees to third parties. Legitimate fees are on the bank’s official schedule and paid through formal channels.

Typical documentation (non-resident)

• Passport (and visa for property visits if applicable); proof of overseas address
• Employment letter/contract, recent payslips, and 3–6 months of bank statements
• Tax returns or equivalent (where relevant), credit report from home country (if requested)
• Property documents: sale & purchase agreement (SPA), developer NOC, valuation report (bank-appointed valuer)
• Insurance (life/property) as per lender policy

Notes: Each lender has its own country list, minimum income, and property/project eligibility. Unsecured personal loans normally require UAE residency and Emirates ID.