Get a Mortgage in Dubai 2025: 9 Smart Steps for Expats & Residents

Buying property in Dubai is a dream for many, and in 2025, it’s more achievable than ever. Whether you’re an expatriate seeking a long-term investment or a UAE resident wanting to own your first home, understanding how to get a mortgage in Dubai can put you on the fast track to property ownership.

With real estate firms like Concrete House Real Estate making the buying process seamless, it’s now time to break down everything you need to know—from bank offerings and interest rates to eligibility criteria and application steps.

Understanding Mortgages in Dubai 2025

Mortgages in Dubai are loans secured against real estate property, allowing buyers to pay in installments. Regulated by the UAE Central Bank, mortgage regulations ensure financial security while offering flexibility to expats and nationals alike. In 2025, with increasing demand, banks are becoming more competitive, offering attractive rates and simplified approval processes.

Why Dubai’s Real Estate Market is a Global Magnet

Dubai continues to attract global investors due to its tax-free environment, futuristic infrastructure, and high return on investment (ROI). The introduction of 10-year Golden Visas and 100% foreign business ownership in free zones have boosted confidence further. Whether you’re buying to live or lease, the city’s real estate is a rock-solid investment in 2025.

Types of Mortgages Available in Dubai

Dubai offers various types of mortgage loans:

• Fixed-rate mortgages – Interest remains the same for the term (usually 1–5 years).

• Variable-rate mortgages – Tied to EIBOR, the rate changes with market fluctuations.

• Islamic mortgages – Sharia-compliant models like Ijara and Murabaha, involving lease or buy-back arrangements.

Current Interest Rates in Dubai (2025)

Interest rates are influenced by the EIBOR (Emirates Interbank Offered Rate). In 2025, average mortgage rates range between 3.5% and 4.5%, depending on the loan type, term, and your financial profile. Rates are slightly higher for off-plan properties and longer tenure loans.

Step-by-Step Guide to Getting a Mortgage in Dubai

1. Determine your budget

2. Choose a mortgage type

3. Get pre-approval from a bank

4. Hire a real estate agency (like Concrete House)

5. Find the property and sign MoU

6. Complete property valuation

7. Receive final mortgage offer

8. Register property with DLD

9. Transfer ownership and receive keys

Documents Required for a Mortgage in Dubai

You’ll need:

• Passport copy with visa page

• Emirates ID

• Salary certificate or business license

• Bank statements (6 months)

• Credit report from AECB

• Proof of address (utility bill or tenancy contract)

How Much Can You Borrow in Dubai?

• Expats can borrow up to 80% of the property value

• UAE nationals can borrow up to 85%

• Total loan should not exceed 50% of monthly income

Mortgage for Off-Plan vs Ready Properties

Banks are more conservative with off-plan properties. Financing usually covers 50–75%, and is only extended to projects from approved developers. Ready properties, however, enjoy wider options and higher LTV ratios.

Down Payment Expectations in 2025

The minimum down payment remains:

• 20% for expats

• 15% for nationals

You must also account for property registration, agent commissions, and DLD fees, which can total another 6–8%.

Mortgage Pre-Approval Process

Pre-approval is essential and typically valid for 60–90 days. It involves bank reviewing your income, expenses, and liabilities to give you a max loan amount.

Property Valuation and Legal Requirements

Your chosen bank will carry out a valuation to ensure the selling price matches market value. Expect fees of AED 2,500–3,500. After that, the Dubai Land Department (DLD) requires all documents for registration.

Hidden Costs in Getting a Mortgage in Dubai

Be prepared for:

• Processing fee: ~1% of loan amount

• Valuation fee

• Life & property insurance

• DLD registration and transfer fees

The Role of Real Estate Agencies like Concrete House

Working with trusted agencies like Concrete House Real Estate ensures smooth communication with banks, accurate documentation, and hassle-free negotiation—all tailored to your goals.

Islamic Mortgages in Dubai (Sharia-compliant)

Dubai Islamic Bank and others offer Murabaha (cost-plus) and Ijara (leasing) models. These avoid traditional interest and comply with Islamic finance laws—ideal for religious or ethical buyers.

Risks & Pitfalls in Dubai Mortgages

• Fluctuating EIBOR

• Overvaluation by developers

• Early settlement penalties

• Denial of financing post-MoU due to credit issues

Mortgage Refinancing in Dubai

Homeowners can refinance to secure better rates, especially if their fixed term expires. Ensure total costs (fees + penalties) don’t outweigh the benefits.

How to Improve Mortgage Eligibility in Dubai

• Lower your DTI ratio

• Pay off existing debts

• Maintain consistent income

• Avoid multiple credit card applications

Can Non-Residents Get a Mortgage in Dubai?

Yes! Though they may face:

• Higher down payment (30–40%)

• Shorter repayment terms

• Higher scrutiny on international income

Foreign Currency Mortgage Risks

Mortgage in USD/GBP can lead to exchange losses if AED strengthens. It’s safer to choose AED mortgages unless you earn in the same foreign currency.

What Happens if You Miss Payments?

Missed payments can result in:

• Late penalties

• Foreclosure after 3–6 months of default

• Legal action if unresolved

Communicate early with your lender to renegotiate terms.

Impact of the EIBOR on Mortgage Rates

The EIBOR is the benchmark rate that affects variable mortgage pricing. A rise in EIBOR leads to increased EMIs unless you’re on a fixed plan.

Dubai’s DLD and Mortgage Registration Fees

You’ll pay:

• DLD fee: 4% of property price

• Mortgage registration fee: 0.25% of loan value

• Title deed fee: AED 540

Choosing Between Bank Loans & Developer Finance

Developer finance offers longer installment plans, but higher total cost. Banks give lower rates but stricter eligibility.

Tips for First-Time Buyers in Dubai

• Get pre-approved early

• Work with DLD-registered brokers

• Double-check hidden charges

• Understand mortgage type before signing

Comparing Mortgage Offers in Dubai

Use a comparison sheet to analyze:

Role of Mortgage Consultants in Dubai

They:

• Help with paperwork

• Suggest best banks for your profile

• Save time and often negotiate better terms

Should You Choose a Mortgage in AED or USD?

Unless you earn in foreign currency, always choose AED. It’s safer and avoids forex volatility.

Case Studies: Successful Expats Who Got Mortgages in Dubai

Ahmed, a British expat, secured a mortgage from HSBC with 20% down for a 2-bed apartment in Dubai Marina. With the help of Concrete House, the process took under 6 weeks.

How to Get a Mortgage in Dubai

Getting a mortgage in Dubai in 2025 is a highly structured yet rewarding process. From pre-approval to property handover, it requires careful planning, paperwork, and trusted partners. When done right, it’s your gateway to one of the most promising real estate markets globally.

FAQs

Can foreigners get a mortgage in Dubai?
Yes, expats and even non-residents can get mortgages with certain banks.

What is the minimum salary to qualify for a mortgage?
Usually AED 10,000–15,000 per month depending on the bank.

Can I get a mortgage for an off-plan property?
Yes, but only from approved developers and with stricter conditions.

What is the maximum mortgage term in Dubai?
Generally, up to 25 years or until the borrower turns 65.

Do I need to be a UAE resident to apply?
No, some banks offer mortgages to non-residents with global income.

Is a pre-approval necessary?
Highly recommended to strengthen negotiations and speed up the process.