29.07.2025
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What is it about? Mortgages in Dubai are available to foreign citizens, which is why many consider purchasing residential property in one of the world's wealthiest cities. However, the lending conditions differ for citizens and non-residents of the country.
How to apply? The first thing to clarify is whether the borrower meets the banks' mortgage lending conditions. It is also necessary to complete the mandatory stages of transaction processing: from choosing a credit and financial institution (CFI) to registering property rights.
Dubai is known as a city where fantastic opportunities and attractive prospects open up for everyone. Foreign investors wishing to purchase property on the shores of the Persian Gulf need not pay the full cost upfront. UAE banks will assist them with special lending options. For Russians, getting a mortgage in Dubai in 2025 is no longer a dream but a very real opportunity to become a property owner in one of the most successful and dynamically developing cities on the planet.
Over the past seven years, the volume of lending to non-residents by UAE banks has increased by almost 100%. According to Reidin/Global Capital Partners, mortgage loans were used in more than 55% of real estate transactions during the past year.
It is expected that in 2025, the demand for mortgage lending in the UAE real estate sector will increase, despite the predominant practice of conducting most transactions with full cash payment or developer payment plans. This is due to several reasons. One of them is the projected decrease in the key interest rate in the Emirates by 100 basis points by 2025. These expectations are based on the fact that the local currency, the dirham, is pegged to the US dollar. This means that the UAE Central Bank's monetary policy correlates with the US Federal Reserve's course, which after a period of rate increases, is more likely to fall.
The improvement in Dubai mortgage conditions is likely to attract those considering purchasing an apartment. This is related to rising rental costs, which makes people think about property acquisition, as monthly mortgage payments may prove more advantageous than these amounts. Now, borrowers who already have a mortgage will get a chance to refinance loans on more favourable terms due to lower interest rates. This circumstance may attract investors to the real estate sector who are interested in short-term profits, considering that housing prices in Dubai remain at a high level.
Here, not only citizens of the country but also foreigners have the opportunity to obtain a loan for an apartment. However, requirements for non-residents are stricter, and only a small number of CFIs are willing to provide them with credit.
Banks have special requirements for foreign citizens wishing to get a mortgage to purchase property in Dubai:
Financial institutions sometimes introduce special conditions, such as requiring an established period of employment at the current workplace or a limited number of previous employers.
Let's examine how to get a mortgage in Dubai. The procedure takes approximately three months and consists of several periods:
The process takes one to two days.
Despite having an account with a trusted CFI, it's recommended to review offers from other financial institutions. It's important to compare interest rates, lending conditions, and payment methods. If planning to purchase property under construction, it's useful to know whether the developer cooperates with your CFI regarding mortgages for such properties. Clients who already use the bank's services often get loan approval faster, as the CFI is familiar with their credit history and financial situation.
The process usually takes three to five days.
The bank evaluates the applicant to ensure they meet basic creditworthiness requirements. CFI specialists will examine the potential client's financial condition, assets, obligations, and credit history. The main reasons for rejection are insufficient income, making mortgage payments impossible, or not meeting age criteria.
The bank requires the following documents:
Documentation must be provided in English or Arabic.
The process takes one to two months.
The buyer makes the final choice after receiving preliminary bank approval for the transaction. Mortgage lending is available for both completed properties and properties under construction. However, for the latter, there is a requirement: construction must be completed and the property commissioned no later than two years after the loan is issued. The bank may require a down payment of up to 70%, depending on the company and the project stage. It's also necessary to provide a handover notice or Building Completion Certificate (BCC).
The process takes up to 3 weeks.
After selecting the property, a memorandum of understanding is prepared, specifying payment terms, deposit amount, and other details. Then the client opens a deposit by providing a cheque that will only be cashed if the deal falls through.
Important! The bank charges a processing fee for preliminary approval ranging from 0.5 to 1% of the property value, which depends on the down payment amount. The client pays this sum when submitting documents. If the CFI rejects the application, they are obligated to return this money.
Once the agreement is concluded and the cheque is transferred, the bank proceeds with an independent assessment. This procedure is necessary to evaluate the property's real value. An expert, chosen from certified specialists, conducts an analysis, with results recorded in a report. The document notes all advantages and disadvantages of the property. Only after this can the bank decide on issuing the loan, having assessed liquidity and verified the property's market value.
Property valuation costs, which amount to approximately 2.5 to 3 thousand dirhams (681-820 US dollars) plus 5% VAT, are paid by the borrower. Insurance amounts must also be considered:
After approving all transaction stages, the CFI provides the client with the pre-approved loan amount. The mortgage repayment process begins from the first day of the following month, with the borrower making monthly payments according to the previously agreed plan.
These payment amounts are determined based on the chosen interest rate.
Mortgages in Dubai are offered at the following rates:
For loans longer than ten years in Dubai, fixed mortgage interest rates are used. Variable rates are most commonly applied to loans planned for up to five years.
Property acquisition is accompanied by ownership registration through DLD. The electronic Title Deed includes a "Mortgaged in favor of" notation. Once the client closes the mortgage, they receive a new document free from this entry.
Such payments include:
As of June 2025, the Central Bank's key rate, which was increased in July 2023, reached 5.4%. At the beginning of the year, the minimum rate fluctuated between 4 and 7%. The average rate is expected to be 5% in the third quarter.
Yes, but a penalty fee will apply. The penalty amount is 1% of the early repayment sum but does not exceed 10,000 AED (approximately 2,700 USD).
It is possible to buy an apartment in Dubai through a mortgage and obtain such a visa. For a five-year visa, the down payment must be at least 2 million dirhams (about 545,000 USD). The applicant will be eligible for resident status. For a three-year visa, the initial payment of 750,000 dirhams (205,000 USD) must constitute at least half of the property value. The remaining portion can be covered by a mortgage loan.
Property acquisition through such loans becomes possible for foreign citizens provided they are financially stable. If a borrower delays payment for more than 30 days, the CFI may enter a "negative review" in their credit history, significantly complicating future mortgage possibilities.
If a client fails to meet their bank obligations, this can lead to lengthy legal proceedings requiring additional financial expenses. Due to the government's strict approach to law violations, for Russians who default on their mortgage in Dubai, this could result in deportation immediately after debt settlement.
The city's economic development and its role as a key financial and trade hub attract many people wishing to establish themselves here for business development and expansion. As a result, the real estate market here is growing. Investors are interested in Dubai mortgage rates, as property acquisition for obtaining a residency visa is attractive. Residents are offered lower interest rates and preferential terms, making property purchase in this region particularly attractive for local inhabitants.
