Whether you're buying your first home in Dubai or planning to move to a new property in a different area, navigating the mortgage process can be overwhelming. That's where WeSetupBusiness comes in. Our dedicated mortgage advisors are here to help you every step of the way. With years of experience and expertise, they are well-equipped to assist both residents and expats in finding the right mortgage solutions tailored to their needs.

At WeSetupBusiness, we pride ourselves on our strong relationships with numerous banks and lenders across Dubai. This allows us to offer you a range of options that align with your financial situation and property goals. When you share your requirements with us, our advisors will work diligently to guide you through the entire mortgage process, ensuring that you understand each step and don’t miss any crucial details.

From understanding the types of mortgages available to securing the best rates, our team is committed to making your home-buying journey as smooth and stress-free as possible. We believe in personalized service, and our advisors take the time to get to know your specific needs and preferences. This way, we can provide advice and support that truly helps you in securing your dream home. Trust WeSetupBusiness to make your real estate journey in Dubai a happy and successful experience.

Mortgage Financing in the UAE

Mortgage financing is gaining popularity globally, as it enables individuals with good annual incomes to purchase their preferred properties through manageable installment payments. This option not only makes desirable properties accessible but also helps you avoid the ongoing costs of renting, which do not build equity over time.

In the UAE, you can find excellent support regarding mortgage rates, eligibility requirements, loan conditions, early repayment options, and other factors that can facilitate your journey to owning a dream home in Dubai.

Conventional vs. Islamic Mortgages

A conventional mortgage involves a financial institution lending you money, which you repay along with interest. This interest acts as profit for the lender. The mortgage consists of a principal amount and the interest accrued on it. Typically, you have a repayment period of up to 25 years, which is why these loans are often referred to as repayment loans.

In contrast, an Islamic mortgage adheres to Sharia law, which prohibits interest on loans. Instead, the lender purchases the property on your behalf and then leases it back to you for profit. One significant advantage of Sharia-compliant mortgages in Dubai is that you won’t face interest payments as late fees, although the bank may charge certain fees.

Fixed vs. Variable Interest Rates

When considering property mortgages in Dubai, homebuyers have various options to choose from.

Fixed Rate Mortgage

A fixed-rate mortgage secures an interest rate for the entire duration of the loan. This allows you to know exactly how much you will pay throughout the mortgage term. Depending on your agreement, you might be able to pay off a fixed-rate mortgage early without penalties, or you may incur a breakage cost for early repayment.

Variable Rate Mortgage

A variable-rate mortgage is another option available to expats and locals in Dubai. The interest rate on this type of mortgage fluctuates, meaning your monthly payments can change. If rates decrease, your payments go down; if they rise, your payments increase. While this option offers flexibility, it also introduces some uncertainty. Similar to fixed-rate mortgages, variable-rate mortgages can be open or closed, and you can switch to a fixed-rate mortgage at any time.

Home Loan to Value Ratio

For UAE nationals, the minimum down payment is 15%, allowing for an 85% mortgage on properties valued up to AED 5 million. For properties exceeding AED 5 million, the down payment increases to 30%, resulting in a 70% loan-to-value ratio.

Maximum Home Loan to Value Ratio for Expats

Non-residents can secure a mortgage of up to 80% with a 20% down payment for properties priced at AED 5 million or less. For properties above this amount, the loan-to-value ratio decreases to 65%, requiring a 35% down payment.

For off-plan properties in Dubai, buyers must make a 50% down payment, resulting in a loan-to-value ratio of 50%.