Frequently Asked Questions

Welcome to our “Questions & Answers” section! Here, you will find detailed information about lending in the UAE, including loan eligibility criteria, borrower requirements, interest rates, the application process, and much more. We have gathered the most frequently asked questions to help you understand the details and make an informed decision. If you have any additional questions, feel free to contact us—we are always happy to help!

Mortgage pre-approval is a process where a lender evaluates your financial information to determine how much money they are willing to lend you for a home purchase. Pre-approval also demonstrates to sellers that you are a serious buyer and can help expedite the closing process.

Yes, many banks offer mortgages to non-residents in UAE. However, interest rates for non-residents may be higher than those for residents, and the loan term may be shorter.

The bank hires an accredited, independent third-party valuation company, which determines the property’s market value. If the appraised value differs from the price stated in the sales agreement, the bank typically bases the mortgage calculation on the lower of the two amounts.

You can view all applicable fees using our mortgage calculator. Simply click on ‘mandatory payments,’ and the system will generate a detailed breakdown of all costs related to property purchase.

Non-residents can get up to 65% LTV on their mortgages in the UAE. To know the updated rates, speak to our mortgage advisors today.

Islamic Mortgage is different from a conventional mortgage. Under Shariah Law it is forbidden to charge interest on a loan, so banks buy the property on behalf of the customer and rent or lease it back for a profit.

Before applying for a mortgage in the UAE, all banks conduct a credit check on the borrower. This check is carried out by the Al Etihad Credit Bureau (AECB).

A fixed-rate mortgage is where the rate of interest on your mortgage is kept fixed for a certain period of time, which is generally between 1-5 years. Once the fixed period ends, you are moved to variable rates. Variable rates, on the other hand, refer to the interest rate that one has to pay linking to 1, 3, or 6 months EIBOR, with a percentage fixed by the bank.

Yes, if the bonus & housing allowance is guaranteed and mentioned in the salary certificate or contract. Even if the bonus income is discretionary, it can be considered in some cases.

Before applying for a mortgage in UAE, all banks will conduct a credit check on the applicant. The credit check is carried out by Al Etihad Credit Bureau (AECB), which is the sole credit bureau in the UAE that maintains credit reports on individuals and companies. Download Al Etihad Credit Bureau app and pay a small fee to obtain your updated credit report.

Yes, Life Insurance is mandatory for any mortgage in UAE. In fact, most banks offer insurance before lending you the funds to buy the property.

Equity release (or cash) from the property is possible even for non-residents. This method requires minimal documentation and allows up to 65% of the property value to be released.

It depends from bank to bank, but most banks do charge a penalty for settling the mortgage amount early. The penalty is fixed at 0.1% of the remaining amount capped at AED 10,000 whichever is less.

With a fixed rate mortgage, the interest rate on your mortgage loan remains the same for a certain period of time, which is usually between 1 and 5 years. At the end of the fixed rate, you switch to a variable rate. Unlike fixed rates, variable rates are linked to the EIBOR rate for 1, 3 or 6 months, and their percentage value is set by the bank.

Yes, life insurance is a requirement for any mortgage in the UAE. Most banks offer insurance before issuing a loan for a property purchase.

The AECB Report is a credit report issued by the Al Etihad Credit Bureau in the UAE. It contains information about a borrower’s credit history, payments, outstanding debts, and credit score. Banks and financial institutions use this report to assess the borrower’s creditworthiness. The report can be obtained via the AECB website or mobile application.

The Final Offer Letter (FOL) is a document issued by the bank that outlines the final loan terms, which the client must sign before the mortgage is officially approved. The FOL includes: ● The approved loan amount ● The interest rate ● The loan tenure ● The monthly installment amount ● Any applicable fees and conditions Once the borrower signs the FOL, they formally accept the terms, which cannot be altered afterward.

The Dubai Land Department (DLD) is a government entity that regulates the real estate market in Dubai. Its key functions include: ● Property registration ● Overseeing sales, lease, and mortgage transactions ● Licensing developers, real estate agencies, and property management companies

The Abu Dhabi Department of Municipalities and Transport (DMT) is a regulatory body overseeing real estate, construction, and transport in Abu Dhabi. In the real estate sector, the DMT carries out similar functions to the DLD in Dubai, including property registration and market regulation.