How does the mortgage process work in Dubai?

The Dubai mortgage process follows a predictable sequence once you understand it. Here is how it works step by step.

Step 1: Pre-Approval (1-3 weeks) Before you start viewing properties, get pre-approved from a bank. You submit income documentation - salary certificate, 3 months payslips, 3 months bank statements, employment contract. The bank gives you an in-principle lending amount. This sets your real budget and makes you a credible buyer to sellers.

Step 2: Property Search Search within your pre-approved budget, factoring in 7-8% for transaction costs on top.

Step 3: Sign MOU Once you agree a property price, sign the MOU (Memorandum of Understanding). Submit the MOU and property details to your bank.

Step 4: Bank Valuation (3-7 days) The bank commissions an independent property valuation. They lend against the lower of the agreed price or the valuation. Valuation fee (AED 2,500-3,500) is paid upfront by you and is non-refundable if the deal falls through.

Step 5: Final Offer Letter Bank issues a formal mortgage offer letter with the loan amount, interest rate, term, and conditions. Review before signing.

Step 6: DLD Transfer At the trustee office, the property transfers and the mortgage is registered simultaneously with the DLD. The mortgage registration fee is 0.25% of loan amount + AED 290.

Key LTV limits (UAE Central Bank regulations):

Borrower Type	Property Value	Max LTV
UAE Resident	Under AED 5M	80% (20% deposit)
UAE Resident	Over AED 5M	75% (25% deposit)
Non-Resident	Any value	50% (50% deposit)
Any	Off-plan	50%

Popular banks for expats: Emirates NBD, ADCB, Mashreq, Dubai Islamic Bank (DIB). Each has different products, rates, and eligibility criteria.

Typical timeline: Pre-approval 1-3 weeks → valuation 3-7 days → final offer letter → transfer. Total from MOU to completion: 45-60 days.

Want help navigating the mortgage process for your specific situation?