More and more international investors are discovering the benefits of investing in property in Dubai. In addition to buying with their own funds, there is growing interest in financing options through a mortgage. But how does it work? Is a mortgage in Dubai also available for people without a residence permit (Emirates ID)?
This article answers those questions and explains what you need to know about mortgages in Dubai as a foreign investor.
Can I apply for a mortgage in Dubai as a foreigner?
Yes, it is possible to apply for a mortgage in Dubai as a foreigner. Even if you are not a resident of the United Arab Emirates (UAE), you can finance property through a local bank under certain conditions. Banks in Dubai distinguish between:
- Residents of the UAE with an Emirates ID
- Non-residents without an Emirates ID
The conditions, interest rates and maximum loan amounts vary by category. Residents usually benefit from more favourable terms and lower interest rates. Non-residents can usually borrow a maximum of 50% of the property value, depending on income, creditworthiness and property type.
How do you apply for a mortgage?
Applying for a mortgage in Dubai involves several steps:
- Select a bank and discuss your profile and requirements
- Request a preliminary approval (pre-approval)
- Collect all required documents
- Have the property valued and the application assessed
- Sign the mortgage agreement and complete the transfer
Most banks issue a pre-approval within three to five working days. Keep in mind that each bank has its own criteria and may have different requirements for income, employer or chosen developer.
The entire process can take several weeks (about six) to a few months, depending on the complexity.
Everything in this guide
Mortgage for Dubai residents
If you live and work in Dubai and therefore hold a valid residence permit (Emirates ID), there are more extensive financing options. Banks assess factors such as:
- Employment status, employee or entrepreneur
- Industry in which you are active
- Monthly income
- Length of employment or business activity
Employees can usually apply for a mortgage after three to six months of employment. Self-employed individuals typically need to have been active for at least six months and must provide bank statements as well as evidence of stable income.
For residents, banks often finance 75 to 80% of the property value, with maximum terms up to 25 years. Interest rates are usually lower than those for non-residents.
Mortgage for non-residents of Dubai
If you live outside the UAE, you can still apply for a mortgage with a bank in Dubai. Many banks now offer mortgages to international buyers, reflecting the strong demand for real estate in the region.
Key features of mortgages for non-residents:
- Loan-to-Value (LTV): usually up to 50% of the purchase price
- Term: often limited to 15 to 20 years (shorter than for residents)
- Deposit: 50% or more of the purchase price from your own funds
- Interest: generally higher than for residents, depending on the bank and risk profile
A residence visa can improve conditions. Some banks offer more favorable interest rates and longer terms to foreign buyers with a valid UAE residence permit.
Loan terms and mortgage types
The majority of mortgages in Dubai have terms of up to 25 years. Mortgage types such as linear or annuity mortgages also exist, but interest is treated differently due to Islamic banking principles:
- Banks do not charge traditional “interest” but a form of service fee
- In practice this works similarly to a standard mortgage interest
- Interest-only mortgages are rare
Interest rates
Mortgage interest rates in Dubai generally range between 3.5% and 5%. This is often lower than many European countries at the moment. However:
- Non-residents usually pay a higher rate than local residents
- Rates are typically variable, although some banks allow you to fix the rate for several years
Requirements and documents
To apply for a mortgage as a foreign investor, you must provide several documents, including:
- Proof of income (usually at least six months of payslips or annual accounts)
- Bank statements for the past six months
- Proof of existing assets and liabilities
- Personal identification such as passport and visa (if applicable)
The bank assesses your application based on income and debt obligations, similar to how banks do in other countries.
How does a mortgage work for off-plan property?
For off-plan property, meaning homes that are still under construction, separate rules apply. Most banks in Dubai will only provide a mortgage once at least 50% of the construction has been completed. This progress is registered by the government. Until that point, the buyer must pay the instalments themselves according to the developer’s payment schedule.
When the project has reached the required construction stage, the buyer can switch to a standard mortgage for the remaining amount. This structure, often referred to as an off-plan mortgage on completion, allows financing to be arranged under regular conditions once the property is ready.
Not all banks offer mortgages for off-plan properties, and financing is usually limited to projects from approved developers such as Emaar, Nakheel, Dubai Properties and Meraas.
Advantages and disadvantages of off-plan mortgages
Advantages:
- Generally lower purchase prices for off-plan homes
- Potential for value appreciation during construction
- Flexible payment options, with or without a mortgage
- Ability to rent out the property upon handover while instalments are still being paid
- Possibility to customise finishes according to personal preferences in some projects
Disadvantages:
- Limited number of banks that provide off-plan mortgages
- Mandatory down payment of at least 50%
- Mortgage only available once 50% of construction is completed
- Interest rates often higher and less flexible
- Not every project qualifies for financing
Payment plans as an alternative to mortgages
A popular financing option for off-plan projects is the use of a payment plan offered by the developer. These are interest-free instalments. Examples of common payment structures include:
- 10% upon signing the contract
- Instalments during construction, such as 1% per month
- 50% upon handover
- Post-handover payments: continued repayment after handover
In some cases, you can rent out the property immediately after handover while still completing the payments. This makes it attractive for investors looking for passive income while benefiting from flexible payment options. Note that payment plans vary by project and developer. On Buy Dubai Off-plan you will find the payment plan listed for nearly every project.
Are interest-free mortgages possible?
Yes, some banks in Dubai offer interest-free mortgages that comply with Islamic finance principles (sharia-compliant). Instead of charging interest, these products work on a profit-sharing model. The bank purchases the property together with you and rents out their share to you. Your monthly payments consist of rent and repayment of your ownership share.
Dubai Islamic Bank is a leading provider in this field and offers several types of interest-free mortgage products.
Additional costs when taking a mortgage
When taking out a mortgage in Dubai, there are extra costs to consider:
- DLD fees: 4% of the purchase price, payable on transfer
- Bank charges: application and arrangement fees, often between 0.5% and 1% of the loan amount
- Property insurance: mandatory for the duration of the loan, usually between 0.3% and 0.5% per year
- Valuation fees: typically between AED 2,500 and AED 3,500
Be aware that some banks charge an early repayment penalty, usually 1% of the outstanding balance. However, there are also banks that allow early repayment without penalty.
These costs depend on whether you are buying an existing property or an off-plan property.
Which banks offer mortgages?
Several banks in the UAE provide mortgages to international investors. Popular options include:
- Emirates NBD: competitive interest rates, terms up to 25 years
- Abu Dhabi Commercial Bank (ADCB): fast application process, fixed rate options
- Dubai Islamic Bank (DIB): sharia-compliant, interest-free financing
- Mashreq Bank and HSBC Middle East also offer solutions for European investors
Not all banks finance off-plan projects. Always check whether the developer and project are on the bank’s approved list.
Transferring money to Dubai for property financing
Many international buyers wonder how to transfer funds to Dubai for a property transaction. There are several methods to do this.
Common payment methods:
- International bank transfer to the developer’s escrow account.
- Through your own bank in your home country (some banks may request additional information).
- Some developers also accept payments via crypto or cash (cash is more restricted since 2025), but this is less common and carries more risk.
Important tips:
- Notify your bank in advance about the transaction, especially for larger amounts.
- Always request an official payment confirmation from the escrow account.
- Be aware of exchange rate fluctuations between your currency and the dirham.
Mortgage through a Dubai company (LLC)
Some investors consider purchasing property through a local Dubai company (LLC). This can be interesting for larger investments or when you also have other business activities in Dubai.
Financing via an LLC:
- Banks will usually only finance if the LLC has sufficient cash flow and equity.
- For new companies, financing can be more challenging because there is no proven income yet.
- Interest rates may differ compared to private mortgages.
Note: The costs for establishing and maintaining an LLC are significantly higher than for a private purchase, so this structure is usually only interesting for larger investments.
When is financing in Dubai attractive?
Whether financing in Dubai is attractive for you depends largely on your personal situation. Here are some basic guidelines:
Financing can be attractive if:
- You have sufficient income to meet the strict banking requirements.
- You have some of your own capital available (a down payment is always required).
- You are investing in a proven project or location with stable rental yields.
- You can take advantage of an attractive payment plan.
Financing is less suitable if:
- You are looking for maximum financing without your own funds.
- You are only speculating on short-term price increases.
- You depend entirely on mortgage financing.
- You have little knowledge of local regulations and financing options.
Conclusion: possible, but less flexible than in Europe
Financing property in Dubai is possible for international investors, but it works differently from what you may be used to. You can usually finance up to 50% to 60%, but you must always contribute your own funds.
The combination of payment plans and mortgages often offers interesting opportunities, especially for off-plan projects.
Good preparation is essential. Always seek advice from specialists familiar with both your home market and Dubai. This helps avoid unpleasant surprises.
At Buy Dubai Off-plan our recognised property advisors can connect you with reliable mortgage specialists in Dubai.
Through our free personalised property support service we guide you through the entire financing process in Dubai. From comparing mortgage options to assisting with the application and negotiations with banks, we work with trusted financial advisors on location. They can also advise on projects with attractive payment plans.
Curious which financing option suits your situation best? Contact us without obligation for independent suggestions about mortgages and property financing in Dubai.