Introduction
Purchasing property in the UAE is an exciting milestone, but navigating the mortgage landscape can be overwhelming. Understanding your options, eligibility requirements, and the application process is crucial to secure the best deal. At Hoxtons, we simplify this process for our clients, helping them find the ideal mortgage that matches their financial goals and lifestyle.
Types of Mortgages in the UAE
Fixed-Rate Mortgages – Your interest rate remains unchanged throughout the loan term. This provides stability and predictable monthly payments.
Variable-Rate Mortgages – The interest rate fluctuates based on market conditions, such as the Emirates Interbank Offered Rate (EIBOR). These may start lower than fixed rates but can increase over time.
Islamic Mortgages (Sharia-Compliant) – Designed for individuals who prefer interest-free financing. Instead of interest, you pay profit rates calculated under Sharia principles.
Hybrid Mortgages – A combination of fixed and variable rates, offering stability in the initial years and flexibility later.
Eligibility Checklist
Age: Typically 21–65 years at the end of the loan term.
Income: Minimum salary requirements vary by lender (usually AED 10,000–15,000/month).
Residency: UAE residents, expats, and non-residents can apply, though conditions differ.
Credit History: A clean credit record increases approval chances.
Documentation: Passport, UAE visa, Emirates ID, bank statements, salary certificate, property documents.
Step-by-Step Mortgage Process
Pre-Approval – Check your eligibility and get an estimate of how much you can borrow.
Documentation – Submit all required documents to the lender.
Application & Approval – Lender evaluates your application, credit score, and property valuation.
Mortgage Offer & Signing – Review the terms, sign the agreement, and proceed with payment.
Drawdown – Funds are transferred to complete the property purchase.
Key Terms to Know
Loan-to-Value (LTV): Percentage of the property price the bank will lend.
Debt Burden Ratio (DBR): Percentage of your income that can go toward debt repayments.
EIBOR: Emirates Interbank Offered Rate, affecting variable mortgage rates.
How Hoxtons Can Help
Hoxtons works with 20+ leading lenders in the UAE to ensure clients receive the most competitive rates and terms. Our mortgage consultants handle all steps, from pre-approval to drawdown, ensuring a smooth and stress-free experience.
Conclusion
Securing the right mortgage doesn’t have to be complicated. With Hoxtons, you can navigate the UAE property market confidently. Book a free consultation today and start your mortgage journey with experts by your side.
FAQs
Can non-residents apply for a mortgage in the UAE? Yes, non-residents can apply but may face higher deposit requirements and stricter eligibility.
What is the minimum down payment? Usually 20% for residents and 30–40% for non-residents.
How long does the mortgage approval process take? Typically 2–4 weeks, depending on documentation and lender requirements.
