Guide to the Mortgage Process in UAE: From Application to Approval

Buying a property in the UAE is more than a financial investment — it’s a gateway to security, residency benefits, and long-term wealth. Yet, many aspiring homeowners and investors feel overwhelmed when it comes to understanding the mortgage process in UAE. With multiple banks, different mortgage types, varying requirements for residents and non-residents, and evolving Central Bank regulations, the process can feel daunting.

But here’s the good news: with the right guidance, the UAE mortgage process is structured, predictable, and navigable. At Ricadi Mortgages, we simplify the journey — from your very first question about eligibility to the joyful moment you receive your property keys.

In this guide, we’ll walk you step step through the entire process, answer the most common queries, and share professional insights that ensure you make the smartest financing decision.

Step 1: Mortgage Pre-Assessment – Knowing Where You Stand

Every journey begins with a first step, and in mortgages, that step is a financial health check.

• Income & Salary Assessment: UAE banks typically require a minimum monthly salary of AED 10,000–15,000 for residents and higher thresholds for non-residents.
  
• Credit Score Check: Al Etihad Credit Bureau (AECB) issues your credit score.
  
• Debt-to-Income Ratio: UAE law caps monthly repayments at 50% of your monthly income. Existing loans and credit cards are included in this calculation.
  
• Residency Status: Expats and non-residents can apply, but requirements differ.
  

 Tip: Use a mortgage calculator to estimate your borrowing power. At Ricadi Mortgages, we offer tailored pre-assessments so you know your realistic budget before property hunting.

Step 2: Document Preparation – Setting the Groundwork

The mortgage process moves only as fast as your paperwork. Having complete and accurate documents is crucial.

For UAE Residents:

• Passport + valid visa + Emirates ID
• Salary certificate (for employees) or trade license/audited statements (for business owners)
• Last 6 months’ bank statements
• Proof of address (Ejari, DEWA bill, etc.)
  

For Non-Residents:

• Passport + entry visa copy
• Home country ID
• 3 months Bank statement (you should have an average balance of equivalent of 30k AED or above)
• Proof of overseas income (employment contract, salary slips, or business financials)
• Utility bill for address proof
  

Common Mistakes to Avoid:
❌ Submitting incomplete statements
❌ Mismatched signatures/names
❌ Missing translations for foreign documents

Ricadi Mortgages ensures your file is “bank ready,” avoiding costly delays.

Step 3: Choosing the Right Bank & Mortgage Product

Here’s where decision-making becomes strategic. The UAE offers a wide variety of products:

1. Fixed-Rate Mortgages – Lock in a stable rate for 1–5 years. Best for budgeting peace of mind.
   
2. Variable-Rate Mortgages – Linked to EIBOR (Emirates Interbank Offered Rate). Good if you expect rates to drop.
   
3. Islamic Mortgages – Sharia-compliant options like:
   
   • Murabaha: Bank buys property, sells to you at marked-up price.
     
   • Ijara: Rent-to-own structure.
     
   • Musharakah: Shared ownership model.
     

Choosing wrong can cost thousands over the loan term. Ricadi Mortgages compares offers across banks to secure the best match.

Step 4: Submitting Your Application

With documents ready and a product chosen, the application is filed with your selected bank.

• Underwriter Review: The bank examines your financials, creditworthiness, and property type.
  
• Turnaround Time: Usually 5–10 working days for initial feedback.
  
• Rejection Risks: High debt ratio, unstable income, or property outside approved lists.
  

Ricadi Mortgages leverages its relationships with UAE banks to pre-negotiate smoother approvals.

Step 5: Approval-in-Principle (AIP)

This is a game-changer. An Approval-in-Principle (AIP) is a conditional “yes” from the bank based on your financial profile.

• Validity: Typically valid for 60–90 days.
  
• Why it Matters: Gives you credibility when negotiating with property sellers or developers.
  
• Flexibility: Lock-in rates before market fluctuations.
  

Ricadi clients often secure AIPs faster, giving them an edge in competitive markets like Dubai Marina or Downtown.

Step 6: Property Valuation & Legal Checks

The bank ensures the property itself is sound.

• Valuation Fee: AED 2,500–3,500 (paid buyer).
  
• Purpose: Confirms the property’s market value, condition, and legal status.
  
• Legal Verification: Title deed, developer NOC, and RERA approvals.
  

Step 7: Final Approval & Offer Letter

Once the valuation passes, you’ll receive a Final Offer Letter (FOL).

It includes:

• Loan amount
  
• Tenure and repayment terms
  
• Interest/profit rate
  
• Fees and insurance details
  

Golden Rule: Review every clause before signing. Ricadi’s advisors highlight hidden costs often missed first-time buyers.

Step 8: Down Payment & Bank Processing

The UAE Central Bank mandates minimum down payments:

• 20% for residents buying below AED 5M.
  
• 15% for UAE nationals.
  
• 25%+ for non-residents.
  

Additional expenses include:

• 4% Dubai Land Department fee (varies in other emirates)
  
• Valuation fees
  
• Mortgage registration fees
  
• Life/property insurance
  

Step 9: Loan Disbursement & Property Handover

Finally, the bank releases funds to the seller, and the property ownership transfers in your name.

• Disbursement Timeline: Usually 7–10 working days post-final approval.
  
• Registration: Property is officially registered with the Land Department.
  
• Keys Handover: Congratulations — you’re now a UAE property owner!
  

Special Scenarios in the UAE Mortgage Process

• Non-Resident Mortgages: Higher down payment, stricter checks, fewer bank options.
  
• Buy-Out/Refinancing: Transfer existing mortgage to another bank for better rates.
  
• Complicated Cases: Self-employed, commission-based salaries, or multiple income sources.
  

Ricadi Mortgages specializes in solving these cases with custom strategies.

Common Challenges & Solutions

• Rejected Applications → Solution: Pre-check credit and debt ratios with Ricadi Mortgages.
  
• Delayed Approvals → Solution: Ensure “bank-ready” documentation.
  
• High Fees → Solution: Negotiate better packages with multiple banks.
  

Conclusion: Your Roadmap to Mortgage Success

The mortgage process in UAE doesn’t have to feel like navigating a maze. With the right partner, every step — from application to approval — becomes smoother, faster, and stress-free.

At Ricadi Mortgages, we don’t just process loans; we create success stories for homebuyers, investors, and dreamers alike.

 Ready to take your first step? Contact Ricadi Mortgages today for a personalized consultation.