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UAE Property Mortgages Guide

In the UAE there are many types of mortgage products available, below are some of the main types:

  • Residential mortgages
  • Investment mortgages
  • Non-resident mortgages
  • Commercial mortgages

 

These are available as conventional or Islamic finance.

 

The UAE Mortgage Cap law requires various nationalities to have a cash down payment of at least 20% of the property value for non-UAE nationals  and 15% for UAE nationals plus associated purchase costs.

 

Down payment requirements for non-UAE nationals 

 

Purchase type
Purchase price
Maximum loan-to-value ratio (LTV)
Minimum down payment
First property
Under AED 5 million
80%
20%
First property
Under AED 5 million
70%
30%
Second, third+ property
Any price
60%
40%
Off plan / under construction
Any price
50%
50%

Required Documents

Individuals

Through Real Estate Registration Trustees offices
1- Letter from the mortgagee bank
2- Three mortgage contracts certified by the mortgagee bank and signed by both parties
3- Emirates ID card of the owner (For identification only, no photo is taken) / valid passport copy for Non-residents
4- Electronic No Objection Certificate (eNOC) from the developer in the freehold areas (through Dubai Rest Application)
5- Power of Attorney in case they are appointing someone on their behalf


Through Bank (electronically)

 

1- Electronic No Objection Certificate (eNOC) from the developer in the freehold areas (through Dubai Rest Application)

 

Sole Proprietorship

1- Copy of the Commercial License
2 – Emirates ID Card (For identification only, no photo is taken) or valid passport copy for Non-residents
3- Power of Attorney if appointing someone on their behalf


Limited Liability Company (LLC)


1- Trade license + Page of partners and equities (original and copy)
2- Certificate of Incumbency
3- Establishment contract (appendices if any) (original and certified copy from the Ministry of Foreign Affairs and translated in Arabic)
4- A legal agency in the event of a representative, or a legally certified board of directors decision.

 

Service Fees

 

0.25% of the mortgage value

In the case of a normal mortgage with a title deed / usufruct title deed: AED 250 fee for title deed issuance

In the case of a conservative mortgage with a title deed / usufruct title deed: AED 250 fee for title deed issuance for each title deed

Registration Trustee fees: AED 4,000 service fee

Registration Trustee fees for initial sale registration (Oqoodi): AED 5,000 service fee

AED 10 Knowledge fees added to each fee
AED 10 Innovation fees added to each fee

 

Service Procedures

 

Via the electronic system

 

Step 1: The customer prepares the mortgage requirements with the bank
Step 2: The bank employee enters all the required documents via the electronic mortgage system and the transaction is audited by the bank auditor (All required documents are uploaded via DLD Document Vault)
Step 3: The transaction is sent to DLD for verification and DLD’s fees are deducted from the bank account
Step 4: The certificate and the mortgage poster are issued by DLD’s employee
Step 5: The customer is contacted by the bank to visit the bank branch and receive the outputs


Via the service center

 

Step 1: The customer goes to one of the Real Estate Registration Trustee offices
Step 2: The customer submits the required documents to the employee and makes sure that they are complete (All required documents are uploaded via DLD Document Vault)
Step 3:The transaction data is entered into the system by the employee and is verified
Step 4: The customer pays the fees and receives a receipt for payment
Step 5: the output is delivered to the customer through email

 

Source: Dubai Land Department