A mortgage is a loan from a bank that helps you purchase a home. You then pay the mortgage plus
interest back in monthly Instalment over a set number of years.
Your Questions Answered
Frequently Asked Questions
Banks in the UAE can lend to:
- Residents (UAE nationals & expats)
- Non-residents
- Salaried
- Self-employed
85% if you are UAE national
80% if you are non-UAE national
70% if the property is over AED 5 million
60% if you’re buying your second or third property
Most banks in the UAE require you to have a minimum monthly salary of AED 15k to qualify for a home loan,
although some banks may consider applicants with a monthly salary of AED 10k
A principle is the amount you borrowed that you have to pay back without including interest
A tenor is the life of a loan
Loan to value or LTV is the amount a bank will finance on the property you are purchasing
DBR is the ratio of debt burden income. It is used by banks to determine the credit eligibility of an
applicant. DBR is calculated by an individual's monthly liabilities over their monthly income as a
percentage
A NOC is a legal document that is required from the developer confirming that there are no outstanding
service charges and/or fees regarding the property, allowing the transfer of ownership to happen
For salaried expats/non-residents the cap is 25 years or until the age of 65
For self-employed expats/non-residents the cap is 25 years or until the age of 70
For UAE nationals the cap is 25 years or until the age of 70
When you are on your own, you will have to approach multiple lenders and go through the hassle, while
wasting a lot of time. At fäm Mortgages we examine your case and determine the best outcome for you while
taking advantage of our relationships with the banks
Mortgage interest rates vary from bank to bank. Rates are dependent on if you are salaried, self-employed,
resident or non-resident. It can be as low as 1.79%+EIBOR and go up to around 5%
The Emirates Interbank Offered Rate (EIBOR) is the benchmark interest rate, stated in UAE Dirhams, for
lending between banks within the United Arab Emirates market. EIBOR is calculated daily by the Central Bank
of the UAE
Security cheques have to be given to the lender, which are used as a guarantee for the credit. The lender
will ask you to provide multiple undated cheques for the full amount of the credit as a minimum. All UAE
banks require a security cheque for any types of credit such as credit cards, personal loans, and mortgages
You should typically set aside about 7% of the property price for Land Department, valuation, processing,
and life insurance fees
A valuation is done to assess the actual market value of the property. It is usually done by a third party
company as instructed by the bank
The bank will finance the MOU price or the valuation price, whichever is lower. If the valuation comes
short, the client will have to cover the delta
A property valuation may cost you from AED 1,800 - AED 3,150, depending on the bank
Yes, it is legal for the banks to finance most of your property transaction fees through your monthly
Instalment
A pre-approval is a pre-qualification from the bank for your mortgage. A pre-approval is valid for 60 days
Once your full set of documents are received a pre-approval for a mortgage may take 3-5 working days for
employed persons and 10 working days for self-employed applicants
You should apply for a pre-approval before you search for a property
A mortgage may take as little as three weeks from the pre-approval to the transfer of ownership. However, on
average the process takes around 30-90 days from start to finish depending on the complexity of the purchase
Yes, life insurance is provided by the bank
The maximum age is 65 for salaried expats/non-residents and 70 for self-employed applicants as well as all
UAE nationals. The minimum age to qualify for a mortgage is 21
Yes, you are able to get a mortgage for off-plan or under construction properties. However, they are very
limited to select projects and developers
Yes, your housing allowance can be factored in your mortgage as long as it is mentioned in your contract or
pay slip
Yes, depending on the company and industry you are in. It should also be included in your pay slip
Yes, you can get handover finance for off-plan projects. Pre-approval can only occur 60 days before handover
In case of death, your life insurance is charged by the banks to cover the outstanding loan amount