So, you’ve been considering buying a property in Dubai for some time and feel ready now. With so many conflicting resources online, the home buying and financing process can feel intimidating and overwhelming. We feel you because we googled “how long does it take to get a mortgage in Dubai?” and the results were disappointing, to say the least.
This article breaks down the mortgage application timeline and what you can expect at each step. Along the way, we’ve also included some tips from our mortgage advisors so you feel prepared and confident. But first, to answer your question, on average it takes about 30-50 working days to secure a mortgage in the UAE. This timeline may vary depending on your employment status and individual case but your mortgage advisor can estimate this in the first step of the process.
Tip: Before you kick off the official mortgage process, try using an online mortgage calculator to get a sense of how much of a loan you could borrow from the banks in the UAE. It will take less than 5 minutes and you can do it on your laptop while sitting on the couch or on your phone waiting in line for coffee at Starbucks. Some also refer to this step as mortgage pre-qualification.
Applying for a mortgage in the UAE
Generally, there are two ways you can apply for a mortgage in the UAE: directly with a bank or through a Mortgage Broker like Huspy where you can explore multiple banks and find the best deal. The timeline here has been laid out based on the Mortgage Broker option but the steps are quite similar in both cases.
Step 1: Sign up on Huspy Portal
If you are ready to apply for a mortgage immediately, you can start the process online with Huspy and sign up on our portal. You’ll be asked to share some information about your financial status and will receive a curated list of bank offers shortly after.
In case you need some help, you can choose to schedule a call with one of our experts at any step of the process. They can walk you through the process and help you select the best bank product for you based on market conditions and your financial situation.
Tip: Based on your residency and employment status, you can expect to pay a minimum of 20% of the total property value as a down payment upfront. Make sure to ask your mortgage advisor for the down payment requirements and fees involved in your case in the initial conversation.
Once you have a bank selected, we will prepare a list of any additional documents you need to submit to apply for a mortgage pre-approval, which is the next step.
From signing up on the Huspy Portal to preparing all your final documents usually takes up to 4 days.
Step 2: Applying for a mortgage pre-approval letter
This is probably one of the most crucial steps in the mortgage application process. Many home buyers in the UAE start their property search seriously only after they get a mortgage pre-approval. This helps them estimate what kind of properties they can afford. If you are considering buying a property in the secondary market, sellers will only consider you a serious buyer if you have pre-approval from the bank. Learn more about the mortgage pre-approval process here.
If you’re lucky, you can receive your pre-approval letter in 4-5 days. The letter will state that the bank has pre-approved you for a loan, and will fulfill the requested mortgage amount when the time comes to buy your home.
Generally, mortgage pre-approvals are valid for up to 60 days. This depends on the bank you’ve selected as some have a validity period of 30 days as well. In any case, if your letter expires, it will need to be re-validated by the bank again, thereby extending your mortgage timeline.
Step 3: Finding and choosing a property
Now that you have an approximate deadline and a pre-approval letter, finding a property really depends on the real estate market at the time and your specific preferences. You could get lucky and find your dream property in one day or it could take weeks.
At Huspy, we have knowledgeable property consultants who can guide you through this process based on your budget and needs. And to top it all, if you find a property with a Huspy property consultant and finance it with a Huspy mortgage advisor, not only will you have a seamless home buying experience, but you can also save on conveyance costs (around AED 6,000).
On average, homebuyers take up to 30 days in this part of the home buying process.
Step 4: Property valuation
Once you’ve finalized the property you want to purchase, your bank will request a property valuation report. A property valuation is completed by a third party in order to be neutral. This step is mostly to guarantee to the bank that the property is worth the amount you are asking for. Your mortgage advisor will request some information and documents about the property to proceed further. Once the payment has been made for the valuation, the bank will book a date and time for the valuation to take place.
Tip: The cost of the property valuation will depend on the bank. Some banks offer 50% reimbursement after the mortgage transaction is complete.
If the property valuation report is the exact value or higher than expected, you can move on with your property purchase. The property valuation step usually takes between 3-5 days.
But if the valuation is lower than expected, you can either choose to pay the difference between the property valuation price and the mortgage offer. Or, you can try to challenge the valuation. Usually, this requires proof of similar properties in the building or area at the price you were expecting and asking the bank to re-evaluate.
Rest assured, your mortgage advisor will work together with you to try to find the best solution for you. In this scenario, the timeline can extend anywhere from 14-20 days.
Step 5: Final offer letter (FOL)
After you’ve agreed on the valuation of the property, we will need to confirm the final amount and terms and conditions for the mortgage from the bank. In most cases, these will be the same terms confirmed in the pre-approval letter but in case the bank decides to pull or change the rate, you will be informed about it ahead of time.
Your mortgage advisor will then send this request to the bank on your behalf.
If the bank approves, they’ll notify us that the final offer letter is ready to be signed. This usually takes around 5 days. You will need to sign this document in person at the bank.
Step 6: Disbursal and property transfer
Congrats! You’re SO close to finally getting the keys to your new home. This step is basically where the bank disburses (aka transfers) money to your bank account. Once the disbursal is complete, the mortgage period begins and you will have to start paying your monthly mortgage installments in 30 days.
Now that the funds have hit your bank account, you will have to sign some paperwork to transfer the property title deed. All parties involved (buyer and seller) must attend a meeting at the trustee's office for this process.
The final step from FOL to property transfer will take about 5 days.
So, how long does it take to get a mortgage in Dubai?
It really depends on your individual case. If there are no hiccups along the way, your mortgage could be approved in 6-8 weeks. That is 30-50 working days and about 50,000 minutes to get the keys to your new home. At Huspy, we’ve partnered with the best banks and built strong relationships so we can advocate for your mortgage application and try our best to expedite the process if there are any delays.
Our mortgage advisors will always recommend the best mortgage products for you so the approval process is quick and efficient.