Serdar Properties

How Mortgage Loan works in Dubai?

January 3, 2023

The maximum home loan that expats are permitted to obtain under Dubai mortgage law is 80% of purchase price of the property, therefore, purchasing a property in Dubai for less than AED 5 million, expatriates must come up with 20% down payment.

In Dubai, loan maximum for mortgages on off-plan properties is a little different.

As opposed to making complete cash purchase, getting a mortgage in Dubai enables on keeping fluidity cash flow.

It’s important to know how mortgages operate in Dubai when deciding between paying cash and getting a mortgage to purchase a house.

Two ways of buying property is with cash or on mortgage. Cash investment can be overall cost-effective, mortgage allows greater flexibility of managing finances.


How to get a Mortgage in Dubai?

Here’s the step-by-step process of getting mortgage to finance home purchase:



Considering legally binding, home mortgages in Dubai must be obtained through banks and registered with the Dubai Land Department (DLD). Go directly to the bank and ask about any mortgage deals they have available, or you can employ broker to negotiate on your behalf to secure finest mortgage loan in Dubai.

Mortgage brokers are knowledgeable about local market, as well as available home loans that may be suitable for you. As a result, concentrating on locating ideal property rather than becoming confused by the entire mortgage process.


There are several factors need to consider when deciding what type of home loan is right for your circumstances. Mostly one would fall into categories of fixed-rate and variable rate mortgages.

Most banks feature online mortgage calculators let you enter information and obtain estimation of monthly instalments based on applicable home loan interest rate in Dubai.


An official document issued by the bank as needed for evidence of eligibility for obtaining housing finance.

A bank’s pre-approval letter for a house loan typically takes three to five business days and generally valid for 60 to 90 days, depending on the lender. Giving more time on searching for desired property purchase.


It’s not uncommon for people to look for their ideal property first, then submit a mortgage application. It might work, but  might not be able to get entire amount of mortgage financing needed on buying house.


You can contact your bank to finalize the loan arrangement once you have found the home. Determining the worth of  property you want and assist you in making competitive offer, the bank could send property evaluator.

Paying deposit and choose a date for the sale to close once you and the seller have agreed on a price. The bank will release the loan amount to seller on the last day of property transfer, making you the new owner of property.


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