Mortgage in Dubai for Russians

26.12.2023
Mortgage in Dubai for Russians

Dubai is forecast to continue to establish itself as an attractive investment destination for Russian investors in 2024, offering not only luxury real estate properties, but also access to a variety of financial opportunities, including high mortgage rates and flexible terms. We will tell you step by step how to get a mortgage in Dubai for non-residents and what documents will be needed.

Basic requirements and conditions for obtaining a mortgage in Dubai

Mortgages in Dubai for non-residents are provided in free zones where foreign citizens have full ownership of the purchased property. There are more than 20 such Freehold zones in Dubai.

Dubai law establishes the following criteria for obtaining a mortgage:

- age from 21 to 65 years for employees, and up to 70 years for entrepreneurs.

- proof of income.

- positive credit history.

- presence of a business or official place of work in the UAE.

- the country of which the applicant is a citizen must be included in the list approved by the bank;

- the applicant’s minimum monthly income after taxes must be at least 25,000 dirhams;

- the property must be on the list of approved developers and projects approved for mortgage lending;

- down payment is 25% of the property value,

- costs associated with legal and documentary support for concluding a transaction - about 6-7% of the value of the property.

The bank requires the following package of documents for a mortgage:

- completed mortgage loan application form;

- confirmation of the client’s income - statements for the last six months and payslips for the same period;

- for employees - income certificate and information about the employer;

- entrepreneurs must provide audit reports for the past two years, income and expense reports for the last 12 months, as well as copies of constituent documents, VAT certificate and trade license;

- confirmation of additional sources of income, including income from rental property or dividends;

- a copy of a foreign passport;

- evidence of the legality of funds for paying the down payment;

- receipts for payment of utilities;

- all documents must be submitted in English or Arabic.

Mortgage process

The procedure for obtaining a mortgage loan in Dubai usually lasts approximately three months and consists of the following steps.

1. Pre-approval

Obtaining preliminary approval from the bank by providing documents confirming your financial solvency and creditworthiness.

2. Selection of real estate

After obtaining pre-approval, the selection of a suitable property in the approved non-resident zone follows.

3. Real estate valuation

The bank will evaluate the selected property to ensure that its price matches the requested loan amount.

4. Final loan approval

After a successful appraisal of the property, the bank will provide final approval for the mortgage loan.

5. Signing the contract

Signing a mortgage agreement with the bank and a purchase and sale agreement with the real estate seller.

6. Down payment and payments

A down payment is required. Typically ranging from 25% of the property value, and arrange a subsequent mortgage payment schedule.

7. Registration of the transaction

Registration of the transaction with the Dubai Land Department and receipt of the title deed.

Each step requires careful consideration of documents and conditions, and may also include additional fees and taxes.

Recommendations for obtaining a mortgage in Dubai

Applying for a mortgage in the Emirates can be a complex process, especially for foreign investors. By avoiding mistakes and following our recommendations, you can more successfully and safely obtain a mortgage in the UAE. Here are some tips to help you avoid common mistakes:

Choose reliable banks. Listed below are well-known and reliable banks in the Emirates that are available to citizens of other countries.

HSBC is a global bank that offers mortgages to foreign clients whose income is at least 15,000 dirhams per month (about $4,080), with interest rates starting from 2.39%.

Emirates NBD is the second largest bank in the UAE. The interest rate on mortgage loans for foreign clients here starts at 2.49%.

Mashreq is the oldest private bank in the UAE with branches in Europe and the USA. It also has a minimum income threshold for foreigners of Dh15,000 and an initial mortgage interest rate of 2.49%.

Carefully study mortgage rates in Dubai and choose the best one.

Buy real estate from developers with a good reputation. Purchasing real estate from an unverified developer may lead to construction delays or other problems.

Consider additional costs such as transaction registration fees, property insurance, utilities and maintenance.

Be sure to consult with a Dubai real estate lawyer to ensure that all legal aspects of the transaction are taken into account.

Don't take out a loan whose monthly payments will be too burdensome for your budget.

If you want to repay the loan early in Dubai, you will have to pay the bank from 10 thousand dirhams (1% of the mortgage amount).

The process of going through all stages of a mortgage in the UAE, from choosing a bank to signing an agreement, is greatly simplified when an experienced real estate agency specialist helps you. We offer you comprehensive legal and accounting support at every step of your transaction. Our team will also help with choosing a property by providing photos and videography. To start cooperation, simply leave a request on our Major Real Estate website, and we will definitely contact you.

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