How to get a mortgage in Dubai?

How to get a mortgage in Dubai?

There are two ways in which you can buy property in Dubai – with cash or on a mortgage. While investing in cash may be more cost-effective overall, a mortgage allows you greater flexibility in how you manage your money. Below mentioned is a step-by-step process to understand how you can get mortgage finance for the purchase of your dream home.


In order to find a suitable lending institution for you, you can either directly approach a bank for their available mortgage deals or hire a broker to work on your behalf. Hiring a broker may be preferred as it makes the process easy and quick due to their industry experience and insights. This way, you can focus on your home selection without worrying about the whole mortgage process.

Remember, home mortgages in Dubai are sourced through banks and to be legally valid, must be registered with Dubai Land Department (DLD).


Mortgages in Dubai are of different types mostly falling into two categories: fixed-rate and variable-rate. When deciding on which type of mortgage will best suit you, you need to consider factors such as what type of property you are planning to buy, how much down payment you already have, and how much is the loan amount that you need. It is also important to consider your lifestyle, habits, etc. to understand how much installment you can manage to pay every month.

For convenience, you can use our mortgage calculator that allows you to input your variables and get an idea of monthly installments under applicable home loan interest rates in Dubai.


The most important step in the process of mortgage loan application is getting a pre-approval letter from the lending bank. A home loan pre-approval letter is an official document that your lending bank issues and which acts as proof of your eligibility for getting the home loan. It also mentions the maximum borrowing limit for your home loan basis on your eligibility. It takes 3-5 working days to obtain a home loan pre-approval letter.


Now, when you know your budget i.e. the amount of down payment you have and the amount you can avail as a home loan (as per pre-approval letter by the bank), you can confidently begin your home search. The validity of the pre-approval letter is from 60-90 days, so you have all these days to find your perfect home.

Here, it should be clarified that it is not mandatory to start your home search only after home loan pre-approval. Sometimes, people first find their desired property and then apply for a mortgage. This works too, however in that case you may or may not be able to secure the full amount of home finance you need to purchase the property.


When you have finalized the property you wish to purchase, you can now reach out to the bank to finalize the loan agreement. The bank may further assign a property evaluator to find the true value of your desired property which may also help you in making a good offer on it.

Once you and the seller reach an agreement on the price, you make the down payment (deposit). A completion date for the purchase transaction is decided when the bank will release your loan amount to the seller, and you become the owner of that property.

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