Mortgage in Dubai 2026

For a real estate agent working with international clients, understanding the nuances of mortgage lending is not just an additional service, but a key tool for closing deals and building long-term relationships. So let's get straight to the point! 

Mortgage terms and requirements in Dubai in 2026

The vast majority of banks here only work with residents. For your client, this means they must have:

• a valid residence visa;
• a physical Emirates ID;
• confirmed legal income in the UAE (usually through a local bank statement and a certificate of employment).

Recommendation for a real estate agent! Always start the conversation by clarifying residency status. If they do not have residency, the first step should be to consult on how to obtain it (through work, business, or an investment visa). Non-residents can apply for a mortgage at a limited number of banks, but with a higher down payment (up to 40-50%) and less favorable rates.

Residency through real estate purchase: is it possible with a mortgage?

If your client's goal is a 2-year residence visa, the requirements are not strict: the total cost of the property being purchased must be no less than AED 750,000, with at least 50% of this amount paid from the client's own funds. The balance can also be covered by a mortgage loan.

Portrait of the ideal borrower

• Age between 21 at the time of obtaining the loan and 65-70 at the time of its expiration.
• Minimum income of AED 15,000 per month ($4,100). 
• Total monthly payments on all obligations (including the new mortgage) must not exceed 50% of the confirmed monthly income.
• A positive credit history in the UAE is welcome. Its absence is not always an obstacle, but its presence is always an advantage. 
• When applying for a mortgage, life insurance for the borrower is mandatory. Its cost is approximately 0.3-0.8% of the loan amount per year.

Mortgage financial parameters

Rates for 2026: approximately 4% per annum (depending on the bank, amount, LTV, type of property). 

Loan term: up to 25 years.

Down payment:

• completed property (over AED 5 million): up to 70% of the cost (30% of your own funds required).
• property under construction: up to 50% of the cost (50% of your own funds required).

Mortgage as an indicator of property quality

In Dubai, the bank first evaluates the property and then the borrower. This is a critical point for real estate agents. The bank considers real estate as an asset that can be sold in case of default. Therefore, mortgage approval is an indirect guarantee of the property's liquidity and reliability. 

What do banks check?

1. The developer's reputation. Preference is given to proven large companies with an impeccable track record of delivering projects.
2. The status of the project. 
3. The liquidity of the area. Banks are more willing to grant mortgages for properties in Jumeirah Village Circle, Dubai Hills, and Downtown Dubai than for properties in less liquid or new remote locations.
4. Market value. An independent appraisal must confirm that the transaction price is fair.

Recommendation for realtors! By offering your client a property that has already been verified and approved by major banks, you minimize the risk of the deal falling through at the appraisal stage and increase client confidence.

Step-by-step algorithm for a real estate agent: what to offer your client?

Determine the client's status and goal

• Resident or non-resident? Permanent residence or investment?
• Ready-built property or off-plan?

Offer a financial model

Resident for permanent residence on the secondary market: mortgage. Compare their payment with the rental rate.

Non-resident investor on the primary market: installment plan (we will discuss this in the next article, don't miss it!)

Accompany the process

1. The realtor should motivate the client to obtain preliminary approval “before” searching for a property. This determines the budget and strengthens the buyer's position in negotiations with the seller.
2. Property search and reservation (2-6 weeks). This is a key phase of the real estate agent's work. Selection of properties that meet both the client's requirements and the possible requirements of the bank.
3. Execution of a preliminary contract and payment of a deposit.
4. Application for final approval and property valuation. The real estate agent coordinates the appraiser's visit.
5. Signing of the sale and purchase agreement at the DLD and the mortgage agreement. The real estate agent ensures that all parties are present.
6. Registration of the transaction and transfer of funds.

Documents required for registration

• Copy of international passport.
• Copy of residence visa and Emirates ID.
• Bank statement for the last 6 months.
• Income statement from place of employment.
• Proof of legal origin of funds.
• Purchase agreement and title deed.

Financial models and case studies for clients

Case study 1. “Mortgage cheaper than rent” (for personal residence)

Property: apartment in Dubai Hills Estate, cost AED 2.2 million ($600,000).

Rental rate: AED 15,000 per month ($4,080).

Mortgage: 25% down payment (AED 550,000), AED 1.65 million loan for 25 years at 4%.

Monthly payment: approximately AED 7,300 ($1,990).

Savings of AED 7,700 ($2,090) per month, provided that the client pays rent. In the long term, ownership of the asset.

Case 2. Budget calculation for a client from Russia

Client's question: “I have AED 250,000 from the sale of an apartment in Russia. Will this be enough for a down payment in Dubai?”

We take into account not only the down payment (minimum 20%), but also mandatory expenses:

• DLD: 4% of the cost;
• agency commission: 2% of the cost;
• other expenses (appraisal, registration): approximately AED 15,000.

The realtor's answer will most likely be: “Yes, with your budget, you can consider properties costing up to AED 900,000 - 1,000,000. For this amount, you can buy a studio or 1-bedroom apartment in a number of popular residential complexes.”

Top pitfalls and how to avoid them (checklist for a real estate agent)

• Discrepancy in appraisal. The bank's appraised value may be lower than the purchase price. Solution: find out the average appraisal prices for properties in the complex in advance. Build in a financial “cushion” of 5-10% of the cost.

• Hidden costs. The client did not take into account service fees, which can reach 20-40 AED per square foot per year. Solution: request a current fee certificate from the management company before submitting an application.

• Unsuitable property type. Banks do not approve loans for properties outside the freehold zone, hotels, or properties with a very small area. Solution: check the freehold and consult with a mortgage broker at an early stage.

• Problems with confirming income. Salary paid in cash, profits from business without a clear audit history. Solution: establish dialogue with the bank through a mortgage specialist, prepare as many documents as possible (statements for 6-12 months, tax returns).