The UAE is home to the most innovative of architectures. It is no longer just about buying a simple home but rather buying the most exotic, affordable, and imaginative property. Traditionally, the UAE property market was open to just the UAE Nationals, GCC Nationals, and the general expat population.
Recent laws have changed this perspective, allowing home loans for non-UAE residents. Banks also have products that cater to non-residents including mortgages. However, it must be noted that the rules governing non-resident property buyers vary against UAE-based buyers.
The Legal Aspect
The Central Bank of the UAE has dictated certain bylaws for non-resident property buyers:
- As a non-resident, you are eligible to buy properties in the freehold zones.
- You can be eligible to get a loan for 75% of the property value if the property falls under Dhs. 5 million.
- If the property value is more than Dhs. 5 million, then your loan to value ratio (LVR) falls to 65%.
- If you are buying the property as an investment or a second home, your LVR falls even more to 60%.
- For off-plan properties, you can only avail of a 50% LVR.
Another interesting aspect you must understand is that the down payment varies according to your purpose of buying the property.
- If you are purchasing your first home under Dhs. 5 million, the down payment is 25%.
- If the property is more than Dhs. 5 million, then it is 35%.
- If the property is a second home or an investment, the down payment is 40%.
- If the property is off plan or under construction, the down payment is 50%.
The Bank Loan Approval Process
Most banks now offer non-residents an opportunity to borrow money to buy properties in the UAE. You can check out the non-resident mortgages from FAB, Dubai Islamic Bank, HSBC, Mashreq bank, and so on. The maximum amount you can borrow is Dhs. 10 million.
Other noteworthy things are:
- The maximum loan tenure is 25 years when you purchase a residential property and 15 years when you purchase a commercial property.
- The minimum age limit is 21 years
- The maximum age limit is 65 years for salaried non-residents and 70 years for self-employed non-residents.
Documentation Needed by the UAE Banks
Non-residents must show proof of income just like UAE nationals and UAE residents. Your proof of income should be after you have paid all your taxes. Some banks only cater to individuals from certain countries, so you may need to check if your citizenship falls under those categories. You also need to show your tax returns.
Besides this, you also need to:
- Provide your passport as proof of identity
- Bank statements for a minimum of 3 to 6 months
- The credit score from your country
- Salary certificate and pay slips if employed
- For self-employed non-residents, you need to show audited accounting statements, trading license, and certificate of incorporation
Conclusion:
As you can see, there are no restrictions on non-residents to buy property in the UAE. You can also avail of mortgages from most of the UAE banks. The only thing you need to consider is the down payment which is huge and the documentation requirements by the banks.
