Can I Buy a Home in Dubai With a Mortgage?
Written by: Marcus M. Araz, MBA, PhD · Updated:
Yes, you can. You can take out a home loan in Dubai even without holding a residence permit. The Central Bank's loan to value caps look at the status of the property, not at the buyer's residency: a maximum of 50% off-plan, and up to 80% on a foreign buyer's first ready home worth up to AED 5 million.
What sets the loan to value caps
The mortgage regulation of the Central Bank of the UAE (CBUAE) sets the ratio according to the status of the property. For a foreign buyer the table looks like this:
| Property status | Maximum loan to value | Down payment required |
|---|---|---|
| Off-plan | 50% | 50% |
| Ready home, your first property, up to AED 5 million | 80% | 20% |
| Ready home, your first property, above AED 5 million | 70% | 30% |
| Your second and subsequent property | 65% | 35% |
The point to watch is the off-plan purchase. If you buy before the project completes, the ratio stays at 50% whoever the buyer is, so you need to put down half the price in cash.
A mortgage without residency is possible, but the door is narrow
It is widely said that “you cannot get a mortgage in Dubai without residency”. That is not true: the regulation contains no ban tied to residency. The practical picture, however, is this: only a limited number of banks lend to buyers living abroad, and even on ready homes those banks usually stay in the 50% to 60% band. So the right is there, but using the full cap is hard.
Banks also ask for proof of income, bank statements and documents showing the source of the down payment. The correspondence is conducted in English.
Does buying with a mortgage affect the right to residency
These two subjects get mixed up. Taking a mortgage does not in itself block a residency application, but for the Golden Visa a mortgaged property calls for extra documents: the Dubai Land Department asks for a bank letter showing that the threshold amount has been paid and for the bank's consent to residency being issued. The detail is on our Residency in Dubai by buying property page.
Extra costs tied to the mortgage
Taking a mortgage adds two more items to the cost of buying: the mortgage registration fee (about 0.25% of the loan amount plus a fixed charge) and the bank's valuation fee. These sit on top of the 4% DLD transfer fee.
You can work out your own scenario with the Dubai Purchase Cost Calculator and see the item by item breakdown on our Cost of buying a home in Dubai page.
Frequently asked questions
Can I get a mortgage while I have no residence permit in Dubai? Yes. The Central Bank rules set no residency condition. However, few banks work with buyers living abroad and in practice the ratio stays below the cap.
How much can I borrow at most on an off-plan purchase? 50% of the price. That ratio depends on the property being off-plan, not on the buyer's nationality or residency.
What is the ratio on a ready home? 80% on a foreign buyer's first property up to AED 5 million, 70% above that. 65% on the second and subsequent property.
Can I get a Golden Visa with a mortgaged property? You can, but the Dubai Land Department asks for a bank letter showing that the threshold amount has been paid and for the bank's consent.
Which costs are added when I take a mortgage? The mortgage registration fee (about 0.25% of the loan amount plus a fixed charge) and the bank's valuation fee.
Sources
The loan ratios rest on the CBUAE mortgage regulation, and the documents on the residency side on the Dubai Land Department's and the GDRFA's own pages. Ratios and document lists can change; before any purchase decision we confirm the current position together.
Legal notice
capital.works® (YATIRIM UK LIMITED) is a real estate advisory company; it does not provide banking or immigration advice in the United Arab Emirates. This page is for general information and is not personal financial or legal advice. Approval of your loan application depends on the bank's own criteria, and your residency application on the assessment of the competent authorities. For financing on the UK side, our FCA authorisation applies (FRN 1049015, authorised credit broker).
The next step
Write to us with your budget and where you live, and we will tell you which banks work with you and what loan ratio is realistic: Contact us. You can see the whole of the Dubai side on our Dubai Property Guide page, and for a mortgage in the UK read our Can a Turkish citizen get a mortgage in the UK article.