Mortgage Quote Request
The banks that will lend 75% to a Non Resident require that the property must have a Title Deed rather than just a Building Completion Certificate (BCC) and Oqood Certificate.
The Title Deed is only issued once the property is fully paid for and the process will take at least a month once the property is completed and the keys are handed over, but it can take even longer so not a reliable time frame.
The BCC is issued by the Municipality a month or so before you have to make the final payment so this is when you can obtain a confirmed mortgage offer.
It is possible to obtain pre-approval for a mortgage up to 6 Months prior to the draw down date.
There are currently 2-3 banks that will lend between 70% to 75% to non-residents, 3 banks will lend between 50-70% to non-residents. All these banks require a Title Deed in order to provide a mortgage. There is currently only one lender in the market that will offer a 50% mortgage without a Title Deed.
If you were a resident of the UAE, then the 75% LTV mortgage is available on a BCC and Oqood Certificate.
The process for applying for a 75% LTV as against a 50% LTV is much more difficult, time consuming and not as straightforward from an approval process.
Buy a property on a 50% LTV Mortgage and this is a straight forward process for a non-resident, or complete on the property, wait for Title Deed and have a tenant confirmed then apply for a 75% LTV Mortgage or one can do both, 50% first on a BCC then a re-mortgage to 75% LTV when the Title Deed is available.
It is possible to obtain a Mortgage as a non GCC National, either resident or non-resident of the UAE, up to 50% LTV on a property that is under construction however this is limited to projects that have completed 50% of their construction and only with a handful of developers.
The majority of off-plan developments have payment plans that reflect this and you will find 30/70, 40/60 and 50/50 on offer from developers i.e. 50% between booking and completion in construction linked instalments of between 5% and 20% and then 50% on Completion. Once a building has a Completion Certificate issued then the investor is able to book a Mortgage, a 50% LTV Mortgage is a relatively straightforward application and approval process whilst 51% to 75% LTV is more stringent and complicated.
Many of our clients who are purchasing an off-plan property will take full advantage of the developer’s investor friendly payment plan and in some cases will obtain the 50% LTV mortgage during construction and re-mortgage once the property is completed and is rented out, at which time they can obtain a Maximum 75% LTV based upon the property valuation and applicant circumstances.
Raising finance as the property is about to be handed over is when most buyers will go the mortgage route, with payment plans such as 50%, 70% or 80% on completion there is no need until then.
The mortgage term can be up to 25 years or to the age of 65 whichever comes first and all mortgages are Capital and Interest Repayment Mortgages to international buyers. Conventional and Sharia Compliant/Islamic Mortgages are available in the UAE.
Standard Bank Fees and other charges include:
- Bank's Mortgage arrangement fee– The majority charge 1% of the loan amount some do 0.5% and some do not charge with specific terms and conditions.
- Bank's Mortgage Valuation fee – ranges between AED 2,500 to 4,000 depending upon the lender
- Dubai Land Department mortgage registration fee at 0.25% of the mortgage amount plus AED 10.00 + appointment fee of AED 4,000 + Title Deed Fee of AED 540
- For all purchases - Dubai Land Department Registration or Oqood is 4% of the property sale price + AED 500 or AED 1,500 (dependent upon the developer) + AED 20 due at the time of Purchase and first instalment
If you need to raise a mortgage to complete the purchase, then I am not the person to give advice and in all cases we recommend that you speak with a Dubai based Mortgage Advisor who understands off-plan purchases and who can talk you through the application process and provide you with an initial consultation at no charge.
We strongly advise against directly applying for a mortgage in the UAE with a bank whilst you are located abroad. There are too many factors which can influence your mortgage approval and all mortgage applications are registered with the UAE Credit Bureau so it is imperative to get it right the first time. We would be happy to discuss this further at your convenience.