Looking for a Mortgage for purchasing your dream home in the UAE? Our team at MoneyCamel.com makes your job easier by providing you with all the important information you need to know about mortgage regulations, requirements, costs and tips to help you get the best deal.

1. Home Loans in UAE
Your All-Inclusive Guide to Home Loans in the UAE

2. The search for the perfect mortgage deal is just as important as the search
for your perfect home.
We cover everything you need to know before you decide to go the
mortgage-route in the UAE:
• Basic requirements for home loan applicants
• Mortgage Regulations in the UAE
• The Costs involved in taking a Mortgage
• Things to consider when choosing a bank
• Getting a Pre-Approval
• Important Tips for Mortgage customers
1
Planning to take a Home Loan in the UAE?

3. Basic requirements for Home Loan applicants
To be eligible to apply for a home loan you must be:
• A resident of UAE – either a UAE National or Expat resident
• Minimum 21 years of age (some banks have a minimum age requirement of 25 years)
• Salaried or Self-employed, with a verifiable source of income
Other important things to know:
• Minimum salary requirements vary across banks, but usually range from AED 10,000-
25,000 per month.
• All banks offer loans for ready residential properties, and some also offer loans for
selected off-plan purchases
• Some banks also offer loans to Non-residents, for buying property in the UAE
2

4. Mortgage Regulations in the UAE
• Maximum Loan Tenure – 25 years
• Maximum Age of Borrower – 65 for Expats & 70 for UAE Nationals (at
the time of last repayment)
• Maximum Mortgage Lending – The maximum LTV permitted by the
UAE Central Bank:
3

5. The Costs involved in taking a Home Loan
These are the standard fees that you will have to pay when taking a home loan
from any bank in the UAE:
• Interest/Profit Rate – You can choose between Conventional or Islamic loans and
between fixed-rate or variable-rate options. Presently, rates are in the range of 3-
5% p.a.* Check moneycamel.com for best rates on mortgages.
• Valuation Fee – Banks usually charge between AED 2,500-3,000 for carrying out a
valuation of the property
• Processing Fee – Mortgage processing fee is usually 1% of the total loan amount
• Property Insurance Fee – Banks charge around 0.03-0.06% of the property value
for insuring it
• Life Insurance Fee – You need Life Insurance to take a mortgage and banks charge
between 0.03-0.05% of the loan amount for this
*Indicative Rates as of June 2015
4

6. Things to Consider when Choosing a Bank
How does the bank arrive at the rates for the entire tenure?
• How much is the bank margin?
• Is it fixed or not?
What does the bank charge before it actually disburses the loan to you?
• What is the processing fee & valuation fee?
• Are there any discounts on these fees?
How are the repayment terms offered by the bank?
• What are the prepayment/early settlement fees?
• What percentage of the loan can you prepay every year free of charge?
5

7. Pre-Approval: Get one before you decide to go
house-hunting
Why you need a Home Loan Pre-approval:
• To know how much a bank is willing to lend to you and how expensive a home you can afford
• To be taken as a serious buyer by most brokers & agencies and to improve your negotiating-position
Documents required for obtaining a pre-approval:
• Pre-approval application form
• Identity documents – Passport, Residence Visa copies
• Income documents – Salary certificate from your employer
• Bank statements – Usually for the last 6 months
Fees charged by banks:
• Around AED 1,000-2,000
• This is non-refundable, but is adjusted in the processing fee if you end up taking the loan
6

8. MoneyCamel Tips for Mortgage
Customers
• The lowest rate isn’t always the best one - Check the duration for which the
interest rate is fixed, the lowest rates that are advertised are fixed for a
mere 1-2 years and floating thereafter
• Stay abreast of the latest deals – There is always some special offer going
on at various banks all year-round. Get the latest offers on Mortgage on
moneycamel.com
• You can negotiate with the bank representative to lower the
processing/valuation fees – This is especially easier if you take the loan
from the bank where your salary gets credited
• Some banks also give you the option to take life insurance from another
provider and then assign it to the mortgage bank, so you don’t have to be
stuck with just one choice
7