Non-UAE resident can get a mortgage

Ask the agentDhiren Gupta

Question of the Week

I am a non-UAE resident who bought an apartment in Dubai Sports City. I already paid 41% of the sale price. The developer is now asking for the balance to be settled. Can I get a mortgage? What is the process and how much time will it take?

Obtaining a mortgage as a non-UAE resident is not that hard. The challenge will be to find the best product with favourable terms.

Since your apartment is ready, you will surely have a wide choice to arrange your balance payment. Banks will perform their due diligence to check if you qualify for the required loan.

Generally, for the process, you have to submit copies of your passport and visa page, salary certificate, bank statement details along with your credit card details and a credit report copy.

To make the loan application process fast and stress-free, it is advisable to have a mortgage consultant who can give you a wide choice and assist you in identifying the best product and lead you through the complete process.

For non-residents, banks currently finance up to 75% of the property value, with profit rates from 4.99% to 5.5% and a maximum mortgage term of 25 years. The complete processing comprises several steps that are completed within a couple of weeks.

I live in Canada and plan to buy a family house in Dubai. Should I be present in the registration process, or can I appoint someone?

Not compulsory. You can appoint somebody in Dubai who can complete the sale legal formalities including obtaining an NOC and doing the property transfer work on your behalf at the Dubai Land Department (DLD). Except the real estate broker, you can sign a power of attorney (POA) appointing a reliable person who can oversee and perform the required procedures in your absence. However, there are certain rules which you need to follow. The POA should be either signed before a notary public, or certified in the country where it is signed and then legalised by the UAE Embassy in that country. Before taking it to the DLD, the document should be verified at the Ministry of Foreign Affairs and translated into Arabic. As per the current DLD regulations, POAs should not be more than two years old.

I bought a property in 2010 but its interest rate is now higher. I plan to shift to another lender. Will it be wise?

Assuming the rates of 2010, I could say that the existing market rates stand low and start from 2.99 to 5%. But to determine if refinance is a worthy option for you, that can be answered if we know your outstanding payment with the current lender and the current market value of your property. You can consider refinance if you think that with the current rate, you can save a certain amount monthly. You can approach either your current lender to restructure your existing mortgage, or you can concurrently check with other lenders to make an informed decision. Currently, many lenders are offering minimum entry costs by waiving the processing and market evaluation fees. Refinancing comes with some extra charges. Still, if your calculation fits into your budget and lets you redeem the added money, it could be an ideal deal for the long term.

I bought an apartment two months back and recently came to know that the previous apartment owner had faulted the service charges to the owners association. What do I need to do with these since the apartment belongs to me now?

This is a very uncommon scenario as during the property sale/purchase, it is mandatory to obtain a no objection certificate (NOC) from the developer or the owners association (OA).

Once all the service charges and dues are paid until date, only then can the sale proceeding be further processed.

However, as per the guidelines from the Real Estate Regulatory Authority (RERA), up to the date of sale, the seller is the one responsible for the service charges of the unit, and from the date of sale onwards, the new owner of that unit will be liable to pay such charges.

Hence, you will pay the service charges of your property starting only from the period of your ownership.

I bought a property under my mom’s name. It is currently rented. I want to buy 50% share and get the title deed in my name. Can I get a mortgage?

This is quite possible to transfer the property completely to your name. Your mother needs to reassign her 50% property share to you and once the property gets transferred and the new title deed is issued from the Dubai Land Department (DLD), you can get a mortgage for your property.

To transfer property ownership shares, she needs to get an NOC from the developer; thereafter, you need to put a requisition for another title deed after paying the transfer fee at the DLD.

Once the property transfer process is completed, the bank finance option will be available. Every bank has its qualifying norms. If your documents meet the requirements, you can surely manage 50 to 75% finance on the market price of the property. If you need to be assured of how much you qualify for against your property, you can consult a mortgage advisor to get your profile reviewed.

Source: Dhiren Gupta, Special to Freehold
Managing Director, 4C Mortgage Consultancy


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