UAE Mortgages for Expats: Deposit Requirements, Rates & Property Finance Explained

Introduction

Property in the UAE is an attractive investment for both residents and non residents. With a growing economy, world class infrastructure and the promise of long term visas for property owners, it’s no surprise that expats are keen to buy. However, borrowing rules differ depending on your residency status, the value of the property and even your nationality. This guide outlines the deposit requirements, fees and process so that you can navigate the mortgage landscape with confidence.

Deposit requirements

The Central Bank mandates minimum down payments to ensure that borrowers have sufficient equity:

• Expatriate buyers must contribute at least 20% of the property’s value in cash for homes priced at up to AED 5 million. For properties over AED 5 million, the deposit increases to 30%. Banks may require additional funds to cover fees.
• Emirati nationals benefit from lower minimums: 15% for properties up to AED 5 million and 25% for more expensive homes.
• Non resident buyers typically need a minimum deposit of 25% regardless of property value, and some lenders ask for 35%. Non resident mortgages are less common and often carry higher interest rates.

Increasing your deposit reduces the bank’s risk and can result in better terms. If you can put down 30–40%, you may qualify for lower rates and smaller monthly repayments.

Additional costs

When budgeting for a property purchase, it’s essential to factor in several extras:

• Bank arrangement fees: Usually around 1% of the loan amount (plus VAT).
• Property valuation fee: Typically AED 2,500–3,500, paid to the bank’s surveyor.
• Dubai Land Department (DLD) fee: 4% of the purchase price for properties in Dubai. Other emirates have similar registration fees.
• Mortgage registration fee: 0.25% of the loan amount plus AED 290 admin fee.
• Insurance: Life insurance linked to the mortgage is mandatory with most lenders; property insurance is also recommended.
• Brokerage and legal fees: If you use a mortgage broker or lawyer, their fees vary.

These costs can add up to 7–8% of the property price, so ensure you have sufficient liquidity.

Types of mortgages

• Fixed rate mortgages: The interest rate is fixed for a set period (usually 1–5 years), providing certainty about payments. Rates tend to be higher than variable rates, but you are protected from hikes.
• Variable rate mortgages: The rate fluctuates with the UAE Central Bank base rate. Monthly payments can go up or down, which may be attractive if you expect rates to fall.
• Islamic mortgages: Offered under Sharia principles, these are structured as Ijara (lease) or Murabaha (cost plus profit). Instead of charging interest, the bank buys the property and leases it to you; your payments gradually transfer ownership.

Step by step process

1. Assess affordability and obtain pre approval. Approach several banks or mortgage brokers to receive pre approval based on your income, liabilities and credit history. Pre approval letters are usually valid for 60 days and help to speed up the property search.
2. Select a property and sign a sales agreement. Once you’ve chosen a home, sign a Memorandum of Understanding (MOU) with the seller and pay a deposit (often 10%).
3. Submit your formal mortgage application. Provide salary certificates, bank statements, passport copies, residency documents and details of the property. Self employed applicants must submit audited financial statements and trade licences.
4. Property valuation and final approval. The bank will commission an independent valuation to ensure the property is worth the purchase price. After reviewing the valuation, the bank issues final approval and a mortgage offer letter.
5. Transfer ownership and register the mortgage. On completion day, you and the seller meet at the DLD or relevant authority to transfer the title. The remaining funds are paid, fees settled and the mortgage is registered. You will then start monthly repayments according to the agreed schedule.

FAQs

How long does the mortgage process take? 

For salaried applicants with complete documents, approval can be obtained within a week or two. Self employed applicants often wait longer due to additional verification.

Can I get a mortgage if I’m self employed?

Yes, but you will need to provide audited accounts, VAT returns and proof of consistent income. Banks may offer lower loan to value ratios and higher rates to reflect the perceived risk.

What happens if I leave the UAE?

Many banks allow borrowers to retain their property and continue making payments from abroad, but you must inform the bank of any change in residency. Some lenders may require you to settle the loan if you no longer have income in the UAE.

Is life insurance mandatory?

Most lenders require life insurance linked to the mortgage to protect both the borrower and the bank. The premium is often added to the monthly instalment.

How Kingsbury & Partners Private Office can support you

Our Private Office hub assists clients at every stage of the property purchase journey. We analyse your financial profile, recommend lenders offering competitive rates and explain the advantages of fixed, variable or Islamic products. Our relationships with local banks and brokers ensure that you receive pre approval quickly. We also liaise with real estate agents, lawyers and surveyors to coordinate valuations and contractual documents. Whether you’re an expatriate resident or a non resident investor, we provide bespoke advice on structuring deposits, understanding taxes and managing currency exposure. With our support, you can secure your dream home or investment property in the UAE with confidence.