Tips for getting the right mortgage in Dubai (Buyer Tips)
How to Choose the Best Mortgage in Dubai
Buying property in Dubai is a major step, whether you're an end-user or an investor. With the city’s fast-growing real estate market, finding the right mortgage can help you secure your dream home while keeping your finances stable. Here are the most important tips to make the right mortgage decision 👇
1. Understand the Types of Mortgages in Dubai
Before applying, it’s essential to understand the available types:
Fixed-rate mortgage: Your monthly installment remains the same throughout the loan term, offering stability.
Variable-rate mortgage: The interest rate changes based on market conditions (EIBOR), which means your monthly payment may rise or fall.
Choose the one that suits your income stability and financial goals.
2. Calculate Your Affordability
Before signing any deal, be clear about:
Your total monthly income
Current financial obligations (loans, credit cards, etc.)
The down payment amount you can afford
In Dubai, most banks require at least 20% down payment for residents and 25–30% for non-residents.
3. Compare Bank Offers
Don’t settle for the first bank you speak with.
Each bank offers different:
Interest rates
Loan terms (up to 25 years)
Processing fees
Early repayment conditions
Use mortgage comparison websites or consult a property expert to understand the differences.
4. Monitor Market Interest Rates
Interest rates in the UAE are linked to EIBOR (Emirates Interbank Offered Rate).
Keep an eye on market trends — if EIBOR rises, your mortgage payments might increase too (for variable-rate loans).
5. Work with a Mortgage Advisor
A professional mortgage advisor can help you:
Find the most suitable bank
Prepare all required documents
Negotiate for better interest rates
Most advisors offer this service for free, as they’re paid by the banks.
6. Verify Property Valuation
Before approval, banks usually send an independent valuation company to assess the property’s real market value.
If the valuation is lower than your purchase price, you’ll need to pay the difference from your own funds.
7. Plan for Emergencies
Make sure you can cover mortgage payments even during unexpected situations such as job loss or income reduction.
It’s wise to maintain an emergency fund that covers at least 3–6 months of mortgage installments.
8. Read the Contract Carefully
Before signing, always review:
Early repayment terms
Hidden or processing fees
Penalties for late payments
Never rush through the fine print — your mortgage is a long-term commitment.
