Introduction to the Mortgages for non-UAE Residents
When we think of a home loan in the UAE, we think that you have to be a resident of the country to take one but is not true. Many of the banks offer mortgages to non-UAE residents as long as they reside in a particular country in the bank’s list of approved countries. These loans come with a host of interesting features that can range from high loan amounts to competitive interest rates and even comfortable payment tenures. Some banks even let you take loans for 2 properties that you wish to purchase. It can even be taken by an individual or a company.
Features of Mortgages for Non-UAE Residents
These are some of the more common features of mortgages meant for non-UAE residents.
- Loan Amount: The exact amount that a bank will be willing to offer will depend on the bank you approach but some banks offer up to AED 20 million for the purchase of residential properties.
- Interest Rates: The interest rates also depend on the bank that you approach for the loan but you can expect to be charged an interest in the vicinity of 3% to 6% per annum.
- Tenure: The tenure of this loan can be as long as 25 years.
- Loan to Value Ratio: Unlike the home loans offered to residents, most banks offer anywhere from 50% to 60% funding for the property if you are not a resident of the UAE.
- For those who are particular about the financial services they use, there are banks that even offer these loans under the rules of Islamic Banking.
Eligibility Criteria and Documents Required
Before you can receive the money to pay for your new home, you are going to have to meet certain eligibility criteria and submit the required documents.
- For some banks you will have to be a resident of a country that is on the banks list before you can apply for this loan.
- You will also have to be salaried or self-employed.
- You will need to have a minimum monthly income defined by the bank. This income will have to meet the minimum criteria after tax deductions.
You will need to submit the application form for the loan along with the following supporting documents.
- Identity proof in the form of a valid passport.
- Bank statements for the last 6 months. These may be required of individuals and companies alike.
- If you pay taxes then you will need to provide the IT returns also.
- If your country of residence has a credit rating facility then credit reports will be required.
- If you are residing in a country other than the one that issued the passport, then a residency permit will also be required.
- Salary certificates and pay slips will also be required.
- For companies and self-employed individuals, audit statements, certificates of incorporation, trade licenses and business profiles will also be required.
Benefits of the non-UAE Resident Home Loans
The most obvious benefit of these loans is that you get help with financing your new home but they also provide some other benefits, like:
- Some banks provide financing for the purchase of multiple properties.
- You don’t have to provide any proof of income in the UAE.
- Many of the banks will allow prepayments towards the loans without charging a fee for it.
- Some of the banks won’t even require salary transfers in order to be eligible for the loan.
- Many of the banks offer an interest only payment facility too.
- The interest rates offered by the banks can either be variable or fixed based on the bank’s policy.
The biggest advantage of BankBazaar is that when you look for mortgages for non-UAE residents on our site, you are presented with a wealth of choices on the same page. The information provided for each loan is also thoroughly researched and accurate. You will also have the ability to compare various loans from different banks with complete ease.
Frequently Asked Questions - FAQs
Q. What country do I need to reside in to be eligible for this loan?
A. Some of the countries that you can live in to be able to avail this loan are Qatar, Bahrain, Kuwait, the UK, Saudi Arabia and India
Q. Are these loans compliant with the rules of Islamic banking?
A. Yes. The loans offered by some of the banks follow the rules of Islamic banking.
Q. What is the minimum salary required to take these loans?
A. The minimum salary requirements are defined by the bank and are different for each bank.
Q. Do salaried individuals have to submit different documents as compared to self-employed individuals and companies?
A. Yes. The documents required in both these cases will be slightly different. You can check the section on documents required for more details.