Best Mortgage Offers for Expats in the UAE
Quick and easy way to your new home or investment with affordable mortgages
Current bank interest rates in UAE
| Bank | Published banks interest rate | Down payment | Repayment period | Installment for AED 2,500,000 loan amount |
|---|---|---|---|---|
| First Abu Dhabi Bank | 4.24% | from 20% | up to 25 years | AED 13,529 |
| Emirates NBD | 4.79% | from 20% | up to 25 years | AED 14,311 |
| Mashreq | 4.99% | from 20% | up to 25 years | AED 14,600 |
| RAKBank | 4.79% | from 20% | up to 25 years | AED 14,311 |
| Commercial Bank of Dubai | 4.79% | from 20% | up to 25 years | AED 14,311 |
| Abu Dhabi Islamic Bank | 4.44% | from 20% | up to 25 years | AED 13,811 |
| Dubai Islamic Bank | 4,74% | from 20% | up to 25 years | AED 14,239 |
| HSBC | 4.99% | from 20% | up to 25 years | AED 14,600 |
| National Bank of Fujairah | 5.75% | from 20% | up to 25 years | AED 15,728 |
| United Arab Bank | 4.35% | from 20% | up to 25 years | AED 13,684 |
| Standard Chartered Bank | 4,79% | from 20% | up to 25 years | AED 14,311 |
| Emirates Islamic Bank | 4.49% | from 20% | up to 25 years | AED 13,882 |
Conditions for pre-approval
Employment
- Salaried employees - at least 6 months in their current job
- Self-employed - running their business for at least 2 years
Credit history
- Good credit history is necessary
Income
- Minimum income considered by many banks starts from USD 4k (or oveer USD 816k in annual turnover for self-employed)
- Maximum 50% of income dedicated to repayment
Employment sector
- Some banks only offer loans to employees from well-established institutions or government departments
Down payment
- Starting from 20% (15% with national Islamic funding options)
Loan term
- Up to 25 years
Age range
- Between 21 and 70 years old
Required documentation for pre-approval
Personal documentation
Emirates ID and passport or visa
Proof of employment
Proof of residence address
- (DEWA bill or tenancy contract)
Salaried employee
- Latest salary certificate
- Latest pay slips (if there is more than 10% variation in income)
- Proof of previous employment if in current for less than 3 years
- Any additional bank statements from the last 6 months
Self-employed
- Valid Trade License copy
- MOA (Memorandum of Association) including all amendments
- Bank statements from the last 6 months
- Audited financials from the last 2 years
Property documentation
- Quote or offer letter from the seller
- Sale or purchase agreement
- Title deed or site plan
| Monthly income in AED | Maximum monthly instalment in AED | Maximum mortgage loan amount in AED |
|---|---|---|
| 10,000 | 5,000 | 1,500,000 |
| 12,000 | 6,000 | 1,800,000 |
| 14,000 | 7,000 | 2,100,000 |
| 16,000 | 8,000 | 2,400,000 |
| 18,000 | 9,000 | 2,700,000 |
| 20,000 | 10,000 | 3,000,000 |
| 22,000 | 11,000 | 3,300,000 |
| 24,000 | 12,000 | 3,600,000 |
Mortgage loan down payment
| Property type | Property price | Maximum LTV (loan-to-value ratio) | Minimum Down Payment Required |
|---|---|---|---|
| First property | Under AED 5 million | 75-85% | 15-25% |
| First property | Over AED 5 million | 65-70% | 30-35% |
| Any subsequent property | Any price | 60% | 40% |
| Off-plan / under-construction property | Any price | 50% | 50% |
| Typical process phase | Estimated duration |
|---|---|
| Registration and loan inquiry at Kredium | 5-10 minutes |
| Personalized offers from Kredium | 30 minutes-1 hour |
| Mortgage application with a lender | 1 day |
| Mortgage processing by a lender | |
| • Salaried employees | 7-10 days |
| • Self-employed | 15-20 days |
| Mortgage closing with a lender | 1 day |
Costs of mortgage approval
| Costs | Amounts in case of a AED 2,500,000 loan |
|---|---|
| Mandatory one-time costs | In AED |
| Land department fee | 125,580 |
| Property registration fee | 4,200 |
| Mortgage registration fee | 6,260 |
| Valuation fee | 3,675 |
| Bank processing fee | 26,250 |
| Optional one-time costs | In AED |
| Real estate agency or broker fee | 65,625 |
| Conveyancing fee* | 8,000 |
| Oqood fee** | 125,000 |
| Mandatory recurring costs | In AED |
| Life insurance | 280 |
| Property insurance | 136 |
| Total | 365,006 |
| Without optional costs | 166,381 |
Monthly instalments for a AED 2.5 million mortgage loan with different rates and terms
| Interest rate | Mortgage instalments | |||
|---|---|---|---|---|
| 10 years | 15 years | 20 years | 25 years | |
| 1.90% | 22,892 | 15,973 | 12,529 | 10,475 |
| 2.20% | 23,228 | 16,319 | 12,885 | 10,841 |
| 2.40% | 23,454 | 16,552 | 13,126 | 11,090 |
| 2.60% | 23,681 | 16,788 | 13,370 | 11,342 |
| 2.80% | 23,910 | 17,025 | 13,616 | 11,597 |
| 3.00% | 24,140 | 17,265 | 13,865 | 11,855 |
| 3.20% | 24,372 | 17,506 | 14,117 | 12,117 |
| 3.40% | 24,605 | 17,750 | 14,371 | 12,382 |
| 3.60% | 24,839 | 17,955 | 14,628 | 12,650 |
Early mortgage repayment
- 1% fee (1.05% inclusive of VAT) on the outstanding loan amount
- The fee is capped at AED 10,000 (AED 10,500 inclusive of VAT)
- Some lenders allow early settlement up to 40% of the loan amount with no fee required
- Some lenders don't charge a fee for early settlements up to 15% of the outstanding amount (limited to once per year)
Imagine you want to prepay your loan and fully close it in 5 years
| Year | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Outstanding amount | 3,500,000 | 2,800,000 | 2,100,000 | 1,400,000 | 700,000 |
| Prepayement | 700,000 | 700,000 | 700,000 | 700,000 | 700,000 |
| Fee | 10,500 | 10,500 | 10,500 | 10,500 | 7,350 |
Contact us
Kredium Technologies LLC
Single Business Tower, 26th Floor
153 Sheikh Zayed Rd
Business Bay, Dubai, UAE