Buying a Home in Dubai? How Expats Can Get a Mortgage

Expat Mortgages in the UAE: Why It's About Strategy, Not Just Approval

Let’s start with a myth: that getting a mortgage as an expat in the UAE is difficult, complicated, or reserved for the elite.

The truth? Yes, expats can absolutely get mortgages in the UAE. But the better question is, how do you get a mortgage supporting your long-term financial strategy, not just your short-term goal of owning property?

Most people stop at the basic requirements. They meet the salary threshold, get their documents in order, hand everything to a mortgage broker or bank, and feel like they’ve done it the “smart” way. But the real smartness, the real opportunity, lies in understanding how this financial decision fits into a broader plan. A mortgage, especially in a tax-free jurisdiction like the UAE, is a strategic lever, not just a loan.

Who Can Get a Mortgage in the UAE?

The doors are open if you’re a foreign national living in the UAE. Banks here are not only willing but often enthusiastic to lend to expatriates. However, they are cautious, and rightly so, especially given the transient nature of the expat population.

To qualify, you’ll need to be a resident with a valid visa and Emirates ID. Tourists or short-term visitors won’t be eligible. Most banks prefer that you have at least six months of employment history in the UAE or a business track record if you’re self-employed. They’ll also want to see consistent income, usually a minimum of AED 15,000 to AED 25,000 per month, depending on the lender, and a decent credit score, either from the UAE or your home country. If you’re new to the country and don’t have a local credit history, the application process becomes more document-intensive but not impossible.

Another fundamental requirement is the down payment. While UAE nationals may qualify for loans with just 15% down, expats are expected to put down at least 20%. This figure rises further for second homes or investment properties, often up to 40% or 50%. It’s also worth noting that some banks limit the age at which you can repay your loan, typically requiring that the loan be fully repaid by the time you reach 65 if you're salaried, or 70, if self-employed.

How Much Can You Actually Borrow?

This depends on several variables: your monthly income, existing debts, the value of the property, and whether the home will be your primary residence or a secondary/investment property. In general, expats can borrow up to 80% of the value of a property if the price is under AED 5 million. For properties valued above that threshold, lending is usually capped at 70%, and if you're buying a second property or one you don’t intend to live in, the ceiling drops again, often to around 60%.

Banks will also assess your Debt Burden Ratio (DBR), which calculates the proportion of your monthly income that goes towards all debt obligations, including credit cards, car loans, personal loans, and the proposed mortgage. The Central Bank of the UAE limits this to 50%, which means your total monthly debt repayments can’t exceed half of your monthly income. So, even if your salary is healthy, outstanding debts can limit your mortgage eligibility.

Repayment terms vary but generally range from 5 to 25 years. However, the term offered to you will depend on your age and your employment type. Someone in their 50s, for instance, may be limited to a 10- or 15-year term.

Understanding UAE Mortgage Rates: Fixed, Variable, and the Hidden Costs

Mortgages in the UAE are available as fixed-rate or variable-rate products, and choosing the wrong one can cost you more than just a few percentage points.

Fixed-rate mortgages are straightforward. You agree to a set rate, typically for one to five years, and your monthly payments remain stable throughout that period. This provides certainty and is often favoured by first-time buyers or those looking to budget consistently. However, many overlook what happens after the fixed period ends. You’re typically moved to a reversion rate, a variable rate set by the bank, which is often significantly higher than your fixed rate. In some cases, I’ve seen clients drift onto reversion rates above 6% simply because they weren’t advised on what to do before their fixed term ended.

Variable-rate mortgages, on the other hand, are tied to the Emirates Interbank Offered Rate (EIBOR) plus a fixed bank margin. These mortgages offer more flexibility, especially in falling interest rate environments, but they also come with uncertainty. EIBOR has been rising in recent years, so what initially looks like an attractive rate can quickly climb, eating into your disposable income and your returns if the property is an investment.

The actual cost of borrowing, however, goes beyond the rate. You’ll also need to budget for upfront expenses, including:

A mortgage arrangement fee is usually 1% of the loan amount.
A property valuation fee, typically between AED 2,500 and AED 5,000.
Property registration fees with the Dubai Land Department (DLD) are 4% of the property’s purchase price.
Mandatory home and life insurance are both required for mortgage approval.

These fees can add another 6% to 8% to your deposit. So, if you’re buying an AED 2 million home with an 80% mortgage, don’t expect to walk in with just AED 400,000. When all costs are factored in, you’re likely looking at closer to AED 500,000–550,000.

Buying Off-Plan? The Mortgage Rules Are Different

If you’re planning to buy an off-plan property, that is, one that’s still under construction, your mortgage experience will be entirely different. Some banks do offer mortgages for off-plan purchases, but the developer must be on the bank’s approved list. And not all developers make the cut. Some developers that make the cut are Emaar, Damac, Nakheel, Meeras, Sobha, and Ellington.

In most cases, you’ll need to fund the construction period with your own cash in stages through a payment plan agreed with the developer. The mortgage only kicks in upon completion, or at 50% if they are on the bank's approved list. There are options where banks will disburse funds in stages, tied to construction milestones, but these come with their own challenges, including stricter eligibility and longer approval timelines.

Off-plan can be a smart play regarding capital appreciation, especially if you're buying well before the handover, but it requires liquidity and patience. You’ll often need to provide 30% to 50% of the total property value upfront, with the same required again through the payment plan, which can tie up your capital for several years. This is why I advise clients to approach off-plan with a clear understanding of cash flow requirements and exit options, especially if they might be relocating or repatriating within a few years.

Why Most Expats End Up With the Wrong Mortgage

Let’s be honest: most people get their mortgage advice from someone who benefits most from closing the deal. Whether it’s a bank representative, a commission-based broker, or even a property agent pushing their preferred lender, the result is often a product that suits the institution, not the client.

The typical expat buyer is focused on the interest rate, the monthly payment, and whether they can borrow enough to buy the property they want. That’s it. But what about the bigger questions?

What happens if you leave the UAE in five years?
Will your mortgage terms penalise you?
Will the property remain a tax-efficient investment if your residency status changes?
What if you want to rent it out while living abroad?
How will that rental income be taxed in your country of residence?

These are the questions no one else is asking, and they’re the questions that matter most. A mortgage is a 10, 15, or 25-year commitment. Making that decision without considering your future lifestyle, tax status, or estate planning needs is, frankly, reckless.

The Smarter Way to Approach Expat Mortgages

We approach mortgages with one key principle: it’s not about buying a property. It’s about building wealth.

Your mortgage should support your overall financial goals, whether that’s retirement, legacy planning, tax efficiency, or income generation. That might mean borrowing less and investing the difference offshore. It might even mean not buying at all and instead allocating capital toward more flexible, liquid assets until you're clear on your long-term plans.

This is where most brokers stop, and where I begin. I don't just help you get approved. I help you align with the right financial strategy, in the right jurisdiction, at the right time.

What Most Expats Miss: The Risks of Buying at Market Highs

Let’s shift the focus from mortgages to timing for a moment. While access to finance is one piece of the puzzle, when and why you buy property in the UAE are just as critical as how you finance it.

According to the Property Monitor Dynamic Price Index, Dubai property prices are at an all-time high. As of March 2025, prices have surged over 42% since the start of 2020, driven by post-COVID demand, ultra-low interest rates in 2021–2022, and renewed investor confidence. But that momentum is showing signs of plateauing. The same index indicates month-on-month growth has already slowed, and year-on-year figures suggest we may be approaching the top of the current cycle.

If you’re an expat considering a short-term property investment, say, a two- or three-year hold with a plan to resell or “flip”, you need to tread carefully. Buying at the peak of a market cycle comes with a serious risk: negative equity. If prices soften (as they have before), you may find yourself in a position where the property's market value is lower than your outstanding mortgage balance, especially in the early years when most of your repayments are going toward interest, not principal.

It’s not speculation. Dubai’s property market has already lived through this story. Between 2014 and 2020, property prices declined year-on-year in many areas. This was primarily due to two interlinked factors:

Unrelenting supply growth, as developers launched thousands of new units across the emirate
Consistent land development inland, particularly around new infrastructure projects, diluting scarcity and limiting the upside potential for quick capital gains.

Dubai is not like Manchester or Birmingham, where geographical constraints naturally restrict development. Here, the government and private sector continue to unlock vast tracts of land, which is excellent for long-term affordability and urban expansion but limits how much property values can sustainably rise in the short term.

So what does this mean for expats?

If your intention is to buy and hold for the long term, the short-term market cycle matters less. Property prices may rise or fall over the next 2–3 years, but a 10- to 15-year horizon allows you to ride out that volatility, enjoy rental income, and eventually realise capital gains as population growth and infrastructure continue to expand.

But the timing couldn't be riskier if you’re entering the property market purely to flip. You’ll likely buy at or near the top, absorbing high transaction fees and facing the possibility of a slow, multi-year price correction. Without a strong exit strategy or a financial buffer, this could lock up your capital or even result in a loss.

My advice? Buy for the right reasons. Not just because you can, but because the asset makes sense within your broader financial plan. Property in the UAE can be a powerful wealth-building tool, but it’s most effective when backed by long-term thinking, strong financial structuring, and a clear understanding of market dynamics.

Buying UAE Property from Overseas and Unlocking the Golden Visa

You don’t have to live in the UAE to buy property here. In fact, thousands of foreign investors from the UK, Europe, Asia, and South Africa purchase real estate in Dubai and Abu Dhabi each year, often without setting foot in the country during the transaction process.

So, can non-residents get a mortgage in the UAE?

Yes, but with important caveats. Some UAE banks are willing to lend to non-residents, though the process is more limited than for resident expats. Non-resident mortgages typically come with stricter criteria, including:

Higher down payments (usually 50% or more of the property value)
Limited lender choice (only a handful of banks offer this)
More scrutiny around source of income and background checks
Slightly higher interest rates compared to resident borrowers

More often than not, overseas buyers purchase UAE property using the 50/50 cash and mortgage option, especially if they are looking to qualify for residency or park wealth in a tax-free jurisdiction. With no stamp duty, capital gains tax, or inheritance tax in the UAE, real estate offers a unique opportunity for global investors to hold property over the long term with minimal tax leakage, provided they plan their exit route carefully and structure their ownership appropriately.

Can overseas buyers qualify for a UAE Golden Visa?

Yes, and this is where things get very interesting.

The UAE Golden Visa is a long-term residency programme designed to attract investors, entrepreneurs, and highly skilled professionals. One of the most accessible pathways is through property investment.

As of 2024, you can qualify for a 10-year Golden Visa if you invest at least AED 2 million (approx. USD 545,000) in real estate. This can include:

A completed property
An off-plan property from an approved developer
Multiple properties adding up to the threshold
Properties purchased with a mortgage (but your equity stake must be at least AED 2 million)

Once granted, the Golden Visa allows you to live, work, and sponsor family members in the UAE, without needing a local employer or job visa. It's particularly attractive for investors who want to maintain a foothold in the UAE while living internationally or those who see Dubai as a future base for retirement or business.

What about taxes for overseas property investors?

The UAE does not impose income, capital gains, or annual property taxes. However, overseas buyers should always consider the tax implications in their country of residence. For example, UK residents may still be liable for capital gains tax upon selling a UAE property. This is where working with an advisor who understands both international tax law and UAE property structuring is essential.

How My Intelligent Investor Can Help?

Getting a mortgage as an expat in Dubai can feel confusing, but My Intelligent Investor makes it easier.

Our property and expat mortgage service gives you clear steps, expert advice, and useful tools to help you understand the process. Whether you need to know about down payments, interest rates, or bank requirements, they have the right information and manpower for you.

If you’re considering buying a home in Dubai, contact us to learn how to secure the best mortgage for your needs.