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Details on How to apply for a mortgage in Dubai, UAE

Details on How to apply for a mortgage in Dubai, UAE

How to apply for a mortgage.

Before one makes a decision to purchase Dubai real estate, it is better to get track of the finances .Deciding on the options available for getting a mortgage, it is necessary to make the dealing smooth. The following step by step guide can help you avoid a sticky situation.

1) The first and foremost step is to apply for a pre-approval letter from the bank

The documents needed for the process of application include the following:

  • A copy of Passport and visa
  • Bank addressed salary certificate
  • Bank statements of last six months of the buyer‘s personal account
  • Liability details of the buyer
  • The floor plan along with a copy of the title deed along


Bank takes about three to five working days to issue the pre-approval

2) Memorandum of Understanding (MoU) is signed with the seller

The two parties along with their agents, signs the Memorandum of Understanding, both agreeing on the time stated on MoU for the transfer of the property. The buyer issues a down payment of 10 % of the property price for the seller, and it is kept in the custody of the seller’s agent .In circumstances where the buyer backs out of the deal the cheque can be encashed.

3) To get the final approval letter from the bank

For attaining the letter of final approval, the buyer needs to submit the following documents to the bank

  • A copy of the seller’s passport
  • The deposit cheque’s receipt handed over to the seller along with  the signed memorandum of Understanding


4) Issue a cheque for valuation fee

After the bank receives the report of valuation, it issues the final mortgage letter of approval. The duration of this process is of about five working days.

For the security, the purchaser of the property is supposed to issues three to four monthly installment cheques, apart from one cheque that is of the total property‘s value.

A savings account is opened in the name of the purchaser, from where every month the EMI s will be debited.

5) The developer’s NoC

Several developers nowadays ask for   the no-objection certificate (NoC) from the buyer for transfer of the title and the bank’s mortgage registration.

Know your customer’ form is the other thing that needs to be filled by the purchaser.

For the application process of NoC, the two parties need to be at the office of the developer after they have submitted the two documents mentioned above. The issuance of NoC takes place by the developer once the seller has cleared all his dues related to the service charges . The NoC remains valid for ten working days.

6) Property transfer

It is the responsibility of the bank/agent to get an appointment at the DLD office for getting the transfer of the property registered.

The buyer is required to take out the cheque of the manager for the down payment amount or deposit the money in the bank by giving bank the authority to arrange for the cheque for manager. The issuance fee for the cheque is AED 30.

The buyer is liable to issue a cheque for the manager valuing two  per cent of the value of the contract along with registration charge of AED 315. Twenty five per cent of the mortgage value can also be charged as the fees for registration

The respective parties are supposed to be there on the assigned time at the Dubai Land Department office. Once the documents are checked in detail and extensively and after the purchaser of the property has paid the charges of registration, the charges for mortgage registration, the parties sign the legal document of the transfer of the property.  After this the issuance of the title deed takes place, with the original copy being held by the bank and the copy that is attested is kept with the buyer.

Finally, the commission of the agent  is paid by the buyer.

Disclaimer: This guide does not represent any legal body or mortgage provider of the UAE. Every bank has its own method and thus you may be asked to provide them with cheques and / or documents apart from those mentioned in this guide.



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