Mortgage Application: The Documents You Will Need

But Why is There a Rise in Demand for Properties in Dubai? 

There are several reasons for the increasing demand for properties in Dubai: 

• Tax benefits: Dubai has a favorable tax environment, with no income tax or property tax. This has attracted investors from around the world who are looking for tax-efficient ways to invest their money. 
• Economic growth: Dubai’s economy has been growing rapidly in recent years, driven by industries such as tourism, real estate, and finance. This has created a strong demand for housing and commercial properties. 
• Infrastructure development: Dubai has invested heavily in its infrastructure, with world-class airports, ports, and transportation systems. This has made the city more attractive to businesses and individuals looking to invest in the region. 
• Lifestyle and amenities: Dubai offer a high standard of living with modern amenities such as shopping malls, restaurants, entertainment venues, and world-class healthcare facilities. This has made it an attractive destination for people looking to relocate. 
• Political stability: Dubai is known for its political stability, with a government that is supportive of business and investment. This has helped to create a favorable environment for real estate investment. 

Reasons for Rise in Mortgage Applications for Properties in Dubai 

• Favorable interest rates: The low interest rates offered by banks and financial institutions in Dubai have made it more affordable for people to finance their property purchases through mortgages. 
• Growing population: Dubai’s population has been steadily increasing, which has led to a greater demand for housing and property, and hence more mortgage applications. 
• Recovery of the real estate market: The Dubai real estate market has recovered from the slowdown caused by the COVID-19 pandemic, with property prices stabilizing and even increasing in some areas. This has encouraged more people to invest in property and apply for mortgages. 
• Government initiatives: The Dubai government has introduced several initiatives to encourage home ownership, including reduced registration fees and relaxed visa regulations, which have also contributed to the rise in mortgage applications for properties in Dubai. 

What is Mortgage? 

A mortgage is a type of loan used to finance the purchase of a property. In Dubai, the process of obtaining a mortgage is like that of other countries, but there are some unique aspects to consider. 

To get a mortgage in Dubai, the borrower needs to approach a bank or financial institution that offers mortgages. The borrower will need to provide the necessary documents. The bank will assess the borrower’s financial position and creditworthiness to determine the amount of the loan and the interest rate that will be offered. 

Once the mortgage is approved, the bank will provide the funds to the borrower to purchase the property. The borrower will then be required to make monthly payments, which include both the principal amount borrowed and the interest charged on the loan. The repayment period and interest rate will depend on the terms of the mortgage agreement. 

In Dubai, there are also some unique aspects to consider when it comes to mortgages. For example, non-residents may be required to make a larger down payment and may face higher interest rates compared to residents. Additionally, the Dubai Land Department may require certain fees and charges to be paid during the mortgage registration process. 

Documents Required for a Mortgage Application 

The necessary documents required for a mortgage application in Dubai vary depending on whether the applicant is a resident or non-resident. Here is a general list of documents that are typically required: 

For Residents: 

• Passport copy 
• Emirates ID 
• Salary certificate or employment contract 
• Bank statements for the last three to six months 
• UAE credit report 
• Title deed or sales and purchase agreement of the property 
• No objection certificate from the developer or master developer 

For Non-Residents: 

• Passport copy 
• Visa copy or entry stamp 
• Salary certificate or employment contract 
• Bank statements for the last three to six months 
• Proof of overseas address 
• UAE credit report 
• Title deed or sales and purchase agreement of the property 
• No objection certificate from the developer or master developer 

It’s important to note that the specific documents required may vary depending on the bank or financial institution, and additional documentation may be requested during the application process. It’s always advised to get assistance from professional real estate consultants like IFPM. We can not only advice you about the right financial institutions but also assist you in completing your application, assist you with documents and necessary legal aspects.  

Benefits of Buying a Property Through Mortgage in Dubai 

There are several benefits of buying a property through a mortgage in Dubai, including: 

• Increased affordability: Mortgages make it possible for individuals to buy properties that may have been unaffordable with cash or savings. This is because the loan amount can be repaid in regular installments over a period of time. 
• Leverage: By taking out a mortgage, an individual can leverage their finances and maximize their investment. For example, a property purchased with a mortgage may appreciate in value over time, and the owner can benefit from this increase in value. 
• Fixed payments: With a fixed-rate mortgage, the monthly payments remain the same over the life of the loan, making it easier for individuals to budget and plan their finances. 
• Home ownership: Buying a property through a mortgage in Dubai allows individuals to own a home and build equity over time, which can be an asset in the long term. 
• Tax benefits: In some cases, individuals can benefit from tax deductions on mortgage interest payments.