Top Banks for Real Estate Financing in Dubai

Dubai is one of the most advanced and dynamic cities in the world and owning a property in this metropolitan city is truly a privilege. The city’s iconic skyline, futuristic developments, world-class infrastructure and perfect living and business environment enhance the charm and fascination of the city. Furthermore, diverse financing options also facilitate investors and make it seamless to purchase and own real estate in Dubai, UAE.

The UAE nationals, expatriates and foreign investors are allowed to purchase every type of real estate in Dubai. They can also capitalize on available financing options because several banks and other lenders extend financing solutions to expatriate and foreign investors besides local property investors. If you aim to buy property in Dubai and are seeking a financing option then continue reading this blog to find a suitable solution.

Importance Of Property Financing:

Property financing makes it easy to purchase real estate. It makes homeownership seamlessly accessible. Through financing options, property investors can buy real estate without having the full amount upfront, enabling them to secure real estate and consider long-term property investment options. By reducing the burden of lump-sum payments, financing also extends stability and leads to business growth. In addition to that, investors can also improve their creditworthiness for future financing options by timely repayments.

Understanding Property Loans in Dubai

Property financing is highly diversified in Dubai. Locals, expatriates and foreign investors can take advantage of available property financing options in Dubai. No matter whether you are buying a residential property such as a luxury villa for sale in Dubai or aiming to buy commercial real estate, It is necessary to understand the concept of property loans in Dubai to ensure a seamless real estate transaction without needing the full amount upfront. The UAE Central Bank regulates financing options to ensure transparency and fairness, making property loans considerable choices for property investors in Dubai.

Best Banks for Property Loans in Dubai

Emirates NBD

Emirates NBD is one of the top banks in Dubai. Both locals and expatriates can consider it for home loans in Dubai. This bank offers a range of mortgage solutions tailored to meet the diverse needs of investors. No matter whether you aim to buy a property or looking for support for self-construction, Emirates NBD comes with a range of flexible loan programs.

Home Loans For Emiratis

Loans For Self-Construction: This bank provides 100% financing of the construction cost. A debtor or loan borrower can benefit from a payment holiday for up to 2 years or until the borrower is done with the construction work. A home loan seeker can obtain a loan amount of up to AED 25 million. Furthermore, a fixed-rate interest option is also available at Emirates NBD, making it easy and convenient to build a home in Dubai.

Home Loans For UAE Nationals: This bank also extends financing of up to 85% of the property value, making homeownership more seamless. A borrower can obtain a loan amount of up to AED 25 million, allowing locals to own their dream homes in Dubai, UAE.

Loan Against Property For UAE National: The UAE nationals can also obtain loans against fully constructed properties. One can obtain a loan amount of up to 25 million. The Loan-to-Value ratio is 70% in this program, allowing the UAE nationals to access funds for their needs against their homes or completed properties.

Mulhaq Loans: Locals can also consider Mulhaq Loans. Emirates NBD offers Mulhaq Loans, enabling locals to purchase more properties or enhance their existing real estate. A loan amount of up to AED 25 million can be obtained and the loan-to-value ratio is up to 70%. The minimum age of an applicant must be 21 to get this loan.

Government Housing Programmes: Emirates NBD also extends interest-free loans of up to AED 800K for Government Housing Programmes. With zero processing fees and discounted valuation fees, it is considered a convenient and cost-effective solution for government housing programs.

Mortgage Loans For Expatriates

Home Loans For Expatriates: Expatriates can seek property financing for up to 80% of the property value to invest in Dubai’s real estate or own a property in Dubai, UAE. They can obtain a loan amount of up to AED 25 million or 84 times their salary to purchase their dream property through seamless property financing.

Loan Against Property For Expatriates: Expatriates can also obtain loans of up to 25 million against their properties. The loan amount roughly covers 80% of the property value. The loan tenure is flexible, ranging up to 25 years.

Required Documents To Obtain A Loan From Emirates NBD:

For Salaries Class: Passport and Emirates ID, salary certificate, bank statements and pay slips for the last 6th months

For Self-Employed Individuals: Passport and Emirates ID, Copy of Trade License, Memorandum of Association, bank statements of 6 months, audit report of company’s financials of the last 2 years, etc.

Dubai Islamic Bank (DIB)

Dubai Islamic Bank (DIB) also offers home loans to potential real estate investors in Dubai. If you are looking to invest in the property sector of Dubai or purchase your dream home then you should consider Dubai Islamic Bank for financing solutions. 

My Home: DIB offers home loans based on the needs and requirements of borrowers, offering flexibility and stability. Borrowers also enjoy flexibility in choosing their EIBOR review period. Based on your preferences, you can choose a review period. A mixed margin for life is also offered by DIB, also offering a choice of 1,3, or 5-month fixed introductory rates. Following a fixed period, the variable rate remains low and also extends flexible review options.

DIB Nest: Dubai Islamic Banks’s DIB Nest is a sustainable home financing program. It aims to support sustainability and eco-friendly developments to contribute positively. Financing for solar panels and eco-friendly construction materials is available under this program. Furthermore, borrowers can also enjoy discounted mortgage rates.

First Time-Buyers and Existing Homeowners: Flexible home financing is available that offers a profit rate based on EIBOR (3,6 or 12 months) plus a margin, ensuring competitive pricing. The loan tenure is up to 25 years. The UAE nationals can obtain financing of up to 85% of the property while expatriates can get financing of up to 80% of the property value.

Non-Resident Programme: The Non-Resident Programme also helps non-residents to buy or own a home in Dubai, UAE. They can have access to a wide range of approved developers. People who have mortgaged properties can also capitalize on the Home Equity Programme to enjoy more financial stability.

Abu Dhabi Commercial Bank (ADCB)

Abu Dhabi Commercial Bank (ADCB) offers a range of home financing options, extending a seamless home-buying experience in the UAE. ABCD’s financing solutions include Standards Mortgage Loan, Mortgagee Home Saver and Green Home Loan, enabling property investors to choose the most feasible home loan option and buy their dream properties for sale in Dubai, UAE.

Based on your preferences, you can choose between Islamic or conventional home financing options. UAE nationals can get financing of up to 85% of the property value, expatriates can seek financing of up to 80% of the property while non-residents can obtain financing of up to 50% of the property value. Interest rates with two structures are available at ADCB. The first option begins with a fixed rate and then converts into a variable rate and the other one is a variable rate based on EIBOR plus margin. The repayment tenure for UAE nationals and expatriates is up to 25 years while this period can extend for up to 15 years in the case of non-residents.

Required Documents To Get A Home Loan From ADCB

For Salaries Class: A proof of booked property, declaration of the source of down payment, valid passport, visa and EIDA card copy, completed application form, bank statement copy of 6 months, details of exciting liabilities, etc.

For Self-Employed Individuals: Application form, proof of a booked property, declaration of the source of down payment, valid passport, visa and EIDA copy, bank statements of the last 6 months of both personal and company accounts, audit statements copy of the last 2 years, valid trade license copy, details of existing loans, etc. 

First Abu Dhabi Bank (FAB)

First Abu Dhabi Bank (FAB) comes with a range of home loans based on fixed and variable interest rates. Along with that, it also offers low down payments, high loan amounts and reduced fees. First-time buyers can obtain financing of up to 85% of the property value. Fixed rates and flexible financing options are available with rates starting from 0.55% plus 3 months EIBOR. Borrowers can also take advantage of exclusive developer deals on processing and valuation fees. Also, there is no approval-in-principle fee which ensures a smooth and cost-effective loan process.

Several types of mortgage options are offered to both first-time homeowners and existing homeowners at FAB. These options include FAB Green mortgage, Home loans for non-UAE residents, loans for small buildings, national housing loans, etc. 

The loan application process is quite simple. You need to submit an online form to start the procedure. Then a mortgage specialist helps you learn about different mortgage options. After choosing an option, you are supposed to sign a Memorandum of Understanding (MoU). Home valuation is scheduled with an FAB home representative. Documents such as Mortgage application forms, income proof, and sales and purchase agreements are submitted then. Once the mortgage is approved, the investor needs to sign the home offer letter and register the property with the Dubai Land Department (DLD).

Mashreq Bank

When buying real estate in Dubai and seeking financing options then you can also consider Mashreq Bank. Both residents and non-residents can obtain home loans and residents can also consider commercial loan options. With a repayment tenure of up to 25 years, investors can take advantage of high loan amounts that go up to AED 10 million. This bank also offers financing of up to 50% of the property value.

Required Documents For Home Loans

For Salaries Class: Application form, passport copy with a valid visa, salary certificate, bank statement of the last 6th months, a photocopy or purchase contract, a liability letter, photocopy of down payment receipts, etc. 

For Self-Employed Individuals: Application form, passport copy with a valid visa, bank statement of the last six months, a liability letter, audited financial statements of the last 2 years, memorandum and article of association, board resolution copy, trade license copy, copy of chamber of commerce registration, business profile on company letterhead, photocopy of purchase contract and photocopy of down payments.

Summing Up:

Considering the benefits that Dubai’s real estate market offers such as tax benefits, high rental yield, capital appreciation, extended residency visas like the Dubai Golden Visa, safety and security and profitable investment opportunities, it is deemed one of the best places to consider for property-related investment. People with limited finances can still invest in Dubai’s property sector by seeking financial assistance. Several banks including Emirates NBD, Dubai Islamic Bank, ADCB, FAB and Mashreq Bank extend home loans to both local and foreign investors, ensuring seamless and financially sound property transactions in Dubai.

Seamless Property Buying in Dubai – Expert Guidance, Every Step!

Kelt and Co Realty is a prominent real estate agency in Dubai. This property company is known for offering tailor-made real estate solutions, enabling investors to choose the most viable investment option and make profitable investment decisions. If you are passionate about buying real estate in Dubai then consult with our experts to find and own your dream property in Dubai.